Dennis Gartman’s investment principles
Dennis Gartman is an authoritative investor and pundit trusted by even the most seasoned financiers. He is the editor of The Gartman Letter, where he publishes his analysis of market trends.
Professional path
Dennis has worked with the capital markets since 1975. Immediately after graduating from university, he joined Cotton Incorporated as an economist. Gartman worked on analysing the textile industry and the relationship between supply and demand.
His next job was at NCNB National Bank. Dennis was a futures and foreign exchange trader. He was an independent member of the Chicago Chamber of Commerce until 1985. He then became head of brokerage and futures at Soveran Bank. In 1988, Gartman began publishing his magazine, the Gartman Letter. During this time, the publication became popular in financial circles and is still published today.
In addition to these positions, Dennis served as an outside director of the Kansas City Board of Trade. He also chaired the investment committee at the University of Akron and served on the same committee at the University of North Carolina.
Gartman has appeared as a financial expert in the media and has lectured to corporations and central banks.
Gartman’s trading rules
Dennis Gartman’s trading strategy represents the rules the financier uses in his work. The fundamentals of this strategy will help traders improve their performance and find their unique style. These principles are based on Gartman’s experience and help avoid or minimise mistakes.
Key investing rules:
1. In a rising market, you should use buy-only positions. In a falling market, use only sell positions. The best way to make a profit is to follow the trend.
2. Transactions should only be made after careful analysis and study of possible options.
3. In the trading process, it is necessary to monitor fluctuations that go against the trend. It is essential to pay special attention to corrections at support and resistance levels.
4. You should not rush to close a position immediately after opening it. It is better to wait for a certain period for the trade’s profit to grow.
5. If the trade is unprofitable, you should close it immediately. Otherwise, the loss may increase.
6. The use of leverage to cover losses on a trade is excluded.
7. Regular analysis of profitable and losing positions will help to increase profits or minimise losses.
Gartman also advises traders to take a break if they are on a losing streak. Taking a break for a few days will help you recover and switch from negative to positive expectations.
Dennis urges caution when trading stocks in the current market. Fluctuations and volatility can reduce a trader’s alertness and lead to losses.
