Another key tactical tool is the , which focuses on "stop-running" behavior. Scenario: Price makes a new high but quickly reverses.
The price breaks below the prior pullback low (in an uptrend) or above the prior pullback high (in a downtrend).
Trader Vic is famously obsessed with risk. He operates on the principle that "if you protect your capital, the profits will take care of themselves." Another key tactical tool is the , which
The final layer of Trader Vic’s methodology is psychological conditioning. Sperandeo believes the biggest enemy in trading is not the market, but human nature. Greed, fear, and pride cause traders to break their own rules.
Which do you trade? (stocks, crypto, forex, options) Trader Vic is famously obsessed with risk
If the price breaks the new high but and quickly closes back below the previous high, the trend has reversed.
Sperandeo, Victor - Trader Vic - Methods of A Wall Street Master Greed, fear, and pride cause traders to break
His philosophy is built on disciplined risk management and identifying trend changes early. Core Methodology: The 1-2-3 Trend Change Method
His risk management advice is integrated throughout: