

Jesse Livermore's Trading Rules (1940) - charlief

Jesse Livermore’s Trading Rules (written in 1940)<p>1. Nothing new ever occurs in the business of speculating in stock and commodities.<p>2. Money cannot be consistently made trading every day or every week during the year.<p>3. Don’t trust your own opinion or back your judgment until the action of the market itself confirms your opinion.<p>4. Markets are never wrong – opinions often are.<p>5. The real money made in speculating has been in commitments showing a profit right from the start.<p>6. As long as a stock is acting right, and the market is right, do not be in a hurry to take profits.<p>7. One should never permit speculative ventures to run into investments.<p>8. The money lost by speculation alone is small compared with the gigantic sums lost by so-called investors who have let their investments ride.<p>9. Never buy a stock because it has a big decline from its previous high.<p>10. Never sell a stock because it seems high-priced.<p>11. I become a buyer as a stock makes a new high on its movement after having had a normal reaction.<p>12. Never average losses.<p>13. The human side of every person is the greatest enemy of the average speculator.<p>14. Wishful thinking must be banished.<p>15. Big movements take time to develop.<p>16. It is not good to be too curious about all the reason behind price movements.<p>17. It is much easier to watch a few than many.<p>18. If you cannot make money out of the leading active issues, you are not going to make money out of the market as a whole.<p>19. The leaders of today may not be the leaders of two years from now.<p>20. 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.<p>21. 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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GiraffeNecktie
Easier said than done, as Livermore himself knew too well
<http://en.wikipedia.org/wiki/Jesse_Lauriston_Livermore>

