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Wednesday, February 20, 2013

21 Rules Of Legendary Trader Jesse Livermore $GS $C $BAC $MS $BCS

21 Rules Of Legendary Trader Jesse Livermore $GS $C $BAC $MS $BCS

  • Nothing new ever occurs in the business of speculating or investing in securities and commodities.
  • 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.
  • The real money made in speculating has been in commitments showing in profit right from the start.
  • At 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.
  • 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.
  • 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.
  • Few people ever make money on tips. Beware of inside information. If there was easy money lying around, no one would be forcing it into your pocket.

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