The Phantom of the Pits has two big rules. Rule #1 is this:
In a losing game such as trading, we shall start against the majority and assume we are wrong until proven correct! (We do not assume we are correct until proven wrong.) Positions established must be reduced or removed until or unless [...]
I am a retired fighter pilot turned trader. A lot of traders accurately compare trading to flying. As a newbie wanna-be pilot learning to fly a small propeller aircraft, I had to heed my instructor’s every word. To ignore advice would have meant getting killed or worse- failing! I have done [...]
Arthur L. Simpson, the author of Phantom of the Pits (published in 1997), was an independent trader and a long-standing member of the Chicago Open Board of Trade at the time of writing. He may still be trading, I am not sure. He said that he considered the Phantom of the Pits to [...]