Livermore trading strategy
As long as a stock is acting right, and the market is right, do not be in a hurry to take profits. One should never permit speculative ventures to run into investments. The money lost by speculation alone is small compared with the gigantic sums lost by so-called investors who have let their investments ride.
What Patterns Did Livermore Look For?
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. The human side of every person is the greatest enemy of the average investor or speculator. Wishful thinking must be banished. Big movements take time to develop.
Jesse Livermore: Lessons From the Greatest Trader
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. If you cannot make money out of the leading active issues, you are not going to make money out of the stock market as a whole. The leaders of today may not be the leaders of two years from now.
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. Stock analysis can get you far when investing or trading, but to be truly successful any investor or trader will have their own set of rules and guidelines.
Patterns in Stock Prices – Jesse Livermore
The key to success is having a good set of rules and guidelines. Jesse Livermore was one of the most successful traders of the 20th century.
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He wrote this set of 21 rules in that both traders and investors need to keep in mind. These rules are still valid over 75 years later.
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YP Investors hopes you take at least 3 of these rules or all of them , and write them somewhere special so you use them when you are investing or trading. Your email address will not be published. Skip to content Stock analysis can get you far when investing or trading, but to be truly successful any investor or trader will have their own set of rules and guidelines.
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Who is Jesse Livermore? Money cannot consistently be made trading every day or every week during the year. Markets are never wrong — opinions often are. The real money made in speculating has been in commitments showing in profit right from the start. As long as a stock is acting right, and the market is right, do not be in a hurry to take profits. One should never permit speculative ventures to run into investments. The money lost by speculation alone is small compared with the gigantic sums lost by so-called investors who have let their investments ride.