Trader Rick Redmont
Trader Rick Redmond became a role model for thousands of traders and investors worldwide. His skepticism and distrust of graphical analysis, as well as his lack of appreciation for various patterns and lines, made him renowned as the leading skeptic of the most common approach to market analysis at the time.
Despite his distrust of graphical analysis, Redmont managed to develop his own trading strategy and achieve unprecedented heights in options trading, as well as stocks.
First stock exchange experience
Rick recalls his first trading experience as a young college student. He purchased his first shares back in 1961, during the bull market.
So, using the Chartcraft guide, Rick bought shares worth $10,000. Of course, at that point, the guide and stock selection were practically irrelevant, as the market was practically rising, and all trading boiled down to peer competition to see who could make the most money.
After some time, Rick managed to double his deposit and earn $20,000. However, the year 1962 brought some market adjustments, and the bullish trend had practically petered out and was overrun by bears. Intoxicated by easy money, Rick completely lost control of the situation and, in just a couple of months, turned $20,000 into $2.
At the time, $20,000 was a huge amount of money, so this drop led to pressure from his family. Rick once recalled in an interview that all his relatives gave him books like "I Am a Broke Teenager" for Christmas.
Self-development and career
Most teenagers would probably have lost all interest in the stock market after such a crushing defeat. However, the very thought that an inexperienced and stock-ignorant newbie could turn $10,000 into $20,000 in such a short time gave Redmont pause and made him fall in love with the world of stocks forever.
Rick Redmond began actively sifting through libraries for literature dating back to 1900. The first book he came across was titled "Technical Analysis of Stock Trends." This book was a typical classic textbook on graphical analysis, covering various patterns such as head and shoulders, triangles, trend lines, and resistance and support levels.
After reading this book, Rick had more questions than answers. The first thing that seemed strange was that graphical analysis It's too simple and if everything were exactly like that, then everyone would become millionaires.
A fierce skepticism of classical chart analysis methods propelled Redmond's progress at breakneck speed, as he further explored all possible sources of information. One day, he came across a lecture course from the Stock Market Institute, which described in great detail D. Wyckoff's trading methodology.
Thanks to the book, Rick was finally able to understand the relationship between market volume and price and grasp the simple principle of supply and demand. According to Redmond, he noted that demand fades on its own and that strong fundamental data isn't needed for the market to fall. After studying D. Wyckoff's theory, Rick enrolled in a course on Elliott Wave Theory.
After completing graduate school, Rick worked as a stockbroker for many years. Having gained vast experience, Redmond became a fully technical trader. His market analysis was based on wave theory and supply and demand analysis. After leaving the brokerage business, Redmond moved to the OEX exchange, where he became successful in options trading.
As Rick argues, there is no universal strategiesA method that could bring profit to everyone simply doesn't exist. He believes that everyone chooses their own tools, and as evidence, he cites Schwager's book "Market Wizards," which contains interviews with 40 people who achieved success using completely different approaches.
