Trader tips from Richard Dennis, the popular 20th century forex speculator

Tips for traders from Richard Dennis, the popular currency speculator of the 20th centuryWhen a person wants to achieve results, he tends to listen to the opinions of others. There is only one “but” here: there are always many people who want to give useful advice, and only 1 in 10 really understands what they are advising. If you decide to become a successful trader, it is worth listening to the opinions of those who have already become one, right?

The well-known currency speculator in the past, Richard Dennis, who managed to make a fortune with a very small amount in the stock market, has developed a set of rules for traders who want to be successful. Perhaps you have already heard many of them, but it is worth taking a closer look at exactly what the specialist advises and drawing out something useful for yourself.

If you are taking serious losses on a trade, do not continue and wait for the situation to return to normal – exit the market.
If you have recently been “lucky” to open a position that is not profitable, then most likely you are in an unsuitable state. In such cases, even experienced traders are overcome with a mad desire to “recover” as soon as possible. Because of this, they open meaningless trades. To avoid such situations, after actions that have caused losses, it is necessary to close the terminal and spend some time analyzing your actions. As a general rule, it takes at least several days and, in some cases, months.
Each transaction must be classified on the shelves. Train yourself to analyze the data after closing a position, regardless of the results. What was done well? Where were the mistakes made? What could have been done better? It’s great if you write it too.
Consider fundamental analysis and technical analysis alike. The market moves not only for economic and political reasons. There are so many internal fluctuations that fundamental data cannot explain.
If you’ve done well in one market, apply what you’ve learned in another. In this case, Richard Dennis was referring to stocks, futures, options. A Forex trader can apply this advice in his own way, trying out effective methods on different pairs.
Opportunities for major trends should never be missed. Dennis himself notes that 95% of his fortune was earned in 5% of transactions, and the remaining 95% of open positions brought only 5% of the money. In short, big wins are very important. Predict those transactions, wasting less on trifles.
Even if you have your own strategy and it works great, keep learning and trying new approaches. Every trend has a tendency to change. If you stick to your conservative views for too long, you may miss out on a good time to make profits or completely fail to understand what is happening in the market.
Beginners should focus not so much on each trade separately, but on the correctness of their actions as a whole.
Despite a couple of glaring handicaps in his career, he has performed well over the decades. This is a man who learned to trade on the stock market, working there as a messenger for $40 a week. His unwavering opinion of him is: “Learning to trade is possible, and it is even much easier than it seems.”