Simplicity Equals Consistency

This weekend I had the privilege of listening to Mr. Steven Primo present as the featured speaker at this month’s Denver Trading Group seminar. Steve is a friend, and a mentor of mine since I was a 19-year-old Floor Recorder on the Pacific Stock Exchange back in 1980′s.

Good mentors in trading are relationships to treasure. I am fortunate to have a handful of great mentors that read, and some contribute (Beachcomber & JTOS) to the body of work at Bikini Analytics. Steve’s passion is sharing with others what he learned from his mentors, and through hard knocks; how to be a consistent trader.

We dedicate part of our fund’s capital to trading strategies that Steve teaches. One of the most important lessons he offers is the driving concept of our fund; “keep it simple.”

Steve teaches traders: “To survive you need an edge.  For and edge to sustain your trading you have to be able to rely on it.  The edge must be consistent, and the edge must be simple. Cluttering your trading with too many indicators is easy.  It takes discipline and character to simplify your trading.

Those are the most important notes I took this weekend. They are lessons I already learned personally from Steve, and through his book Secrets of a Stock Exchange Specialist, and from his Strategy videos.  I typed the notes in bold and in italics as much for our benefit, as for our readers. The best pro athletes are always working on the basics, and as traders who want to survive, we have to be lifelong students of the market, and never lose focus of the basics!

This weekend was the first time I saw Steve face to face in 20 years, and by chance the lecture was on his Strategy #1“, which is our favorite due to its simplicity.

We are now short Textron (TXT) from Strategy #1 and the trade is working nicely.

Thank you Steve.

To learn more about Steven Primo’s work visit his site Specialist Trading.com.

Disclaimer: This communication should not be construed as an offer to sell or the solicitation of an offer to buy any security. (Click here for full disclaimer)