A key takeaway is the need for continuous learning and improvement. Sperandeo encourages traders to refine their strategies and stay updated with market developments.
"Trader Vic" warns heavily against the fallacy of diversification. Many traders believe they are diversified because they hold different stocks. However, Sperandeo points out that if all your positions are long equities, you are not diversified; you are correlated. A key takeaway is the need for continuous
Sperandeo would ignore the NASDAQ alone. He would check the Russell 2000 (Small Caps) versus the Dow Jones. If the Russell breaks down while the Dow rallies, it is a non-confirmation—a classic warning of a top. Many traders believe they are diversified because they
Underpinning Sperandeo’s entire approach is a rejection of the Efficient Market Hypothesis (random walk). He argues that markets trend because human behavior is repetitive, not random. Fear and greed follow predictable patterns, creating discernible cycles. He would check the Russell 2000 (Small Caps)