“The secret of all victories lies in organizing the non-obvious.”
In the year 1987, when the US market went down by 22% in a single day ( Largest single day crash in American History), he made a return of 60% that month and 200% return that year. This legendary investor has an extraordinary resume with 28 consecutive wins ( 28 years without the losses).
His trading strategies is based on technical analysis, with a lot of emphasis on momentum indicators. Some of his investment advice are listed below:
- Defense is ten times more important that offense.
- Risk control should be number one important focus.
- Diversify, defend and stay in the game.
- Always be with whatever the predominant trend is. ( 200-day Moving average strategy).
- Five-to-One risk/reward strategy. Risk $1 to make $5.
This lessons from modern day Robin Hood is worth applying in portfolio.