Stanley Kroll
Market Wizards Index: +281%
Compound annual over 3 years
Fund or affiliation
- Kroll, Dallon & Company
Methodology
- Tehnical trading using long-term trend following, timing entries during pullbacks.
Techniques Employed
- The broader the market, like wheat and beans, the more likely it is to have an identifiable major trend.
- Kroll pays no attention to any facts, only to market action:
- Commodity "fact" is probably fiction.
- One does not know if it is complete.
- Anything true is already reflected in the market.
Trading Techniques Employed
- Kroll’s basic art of commoditity trading:
- Wait till a major trend is clearly established, and decide to make a big move.
- Put your position in place during periods of correction against that trend.
- As the trend develops, Kroll invests more on each correction but with smaller and smaller amounts. (against pyramiding)
- When the major trend does change definitively, Kroll liquidate during favorable reactions against the new unfavorable trend. i.e. reverse the procedure.
- Never argue with the market, when asked for additional margin, don’t respond, sell out.
- You should avoid averaging down in the way, in commodities, the margin can kill you.
- Every evening he fills out a large card. He will not change his strategy once written out on the card.
- It is hard to establish good positions, and almost impossible to do it quickly.
Philosophy and beliefs
- In commodity speculation, you must have no other daytime interests, and do nothing else. You need "undivided concentration".
History and other facts
- "Money is made by sitting, not trading." Jesse Livermore.
- The average life of a commodities account is about six months.
- Used to be at Merrill Lynch for 13 years.
Performance Record
- 281% over 3 years: "...he had turned $18,000 of his own capital into over a million, and the capital of some 37 quasi-partners... from $646,000 into more than $2.5M [57% c.a.]".
All International Welcome Messages: 1, 2, 3, 4, 5, 6, 7 & 8
