Wednesday, October 21, 2015

Rules from Jesse Livermore

Jesse Livermore is perhaps the most famous stock trader of all-time.
Back in the early part of the 20th century, Livermore made and lost millions shorting the market.
Following are some rules of Jesse Livermore which every trader needs to keep in mind:
  •  Money cannot consistently be made trading every day or every week during the year.
  • Don't trust your own opinion and back your judgment until the action of the market itself confirms your opinion.
  • Markets are never wrong - opinions often are.
  • As long as a stock is acting right, and the market is right, do not be in a hurry to take profits.
  • Never buy a stock because it has had a big decline from its previous high.
  • Never sell a stock because it seems high-priced.
  • I become a buyer as soon as a stock makes a new high on its movement after having had a normal reaction.
  • Never average losses.
  • Big movements take time to develop.
  • It is not good to be too curious about all the reasons behind price movements.
  • It is much easier to watch a few than many.
  • Do not become completely bearish or bullish on the whole market because one stock in some particular group has plainly reversed its course from the general trend.
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Alisha Singh said...

Thanks for contributing your important time to post such an interesting & useful collection. It would be knowledgeable & resources are always of great need to everyone. Please keep continue sharing.!!!!!!!!!!!!!!!!!!!!
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Shivam said...

A lot of these "axioms" may not be true in these times, but a good read nevertheless.