Few traders have enjoyed such a distinguished career as Dennis Gartman.
He’s is perhaps best know for his newsletter, aptly titled The Gartman Letter. It’s a commentary on the global capital markets that goes out daily by 6am.
However, Gartman is much more than a strategist – he’s also an accomplished trader in his own right with a wide range of experience including chief financial futures analyst for A.G. Becker.
He was also the brains behind the futures brokerage operation for the Virginia National Bank.
And through the years Gartman has seen it all - booms and busts; bears and bulls. How has he managed not only to survive but thrive? He lives by a set of rules.
1. Never, Ever, Ever Add to a Losing Position
2. Mental Capital Trumps Real Capital
3. Think Like a Fundamentalist; Trade Like a Technician
4. Complexity Breeds Contempt
-Dennis Gartman, The Gartman Letter
It’s all about capital preservation, says Gartman. Do more of the things that are right and try and do less of the things that are wrong.
If you buy a $15 stock and it goes to $20 buy more, he says. The market is telling you that you’re doing something right.
And if you buy a $20 stock and it goes to $15 get out. The market is telling you that you’re doing something wrong.
Words to live by.