Richard Dennis is a commodities speculator. He borrowed $1,600 and reportedly turned them into $200 million in about ten years. Here are some of his wisdom nuggets:
1) I always say you could publish rules in a newspaper and no one would follow them. The key is consistency and discipline.
2) Almost anybody can make up a list of rules that are 80 percent as good as what we taught people. What they couldn’t do is give them the confidence to stick to those rules even when things are going bad.
3) The market being in a trend is the main thing that eventually gets us in a trade. That is a pretty simple idea. Being consistent and making sure you do that all the time is probably more important than the particular characteristics you use to define the trend.
4) I learned to avoid trying to catch up or double up to recoup losses. I also learned that a certain amount of loss will affect your judgment, so you have to put some time between that loss and the next trade.
5) A good trend following system will keep you in the market until there is evidence that the trend has changed.
