Jesse Livermore’s top 10 best Quotes/Rules
Jesse Livermore was a well known American Investor and successful security Analyst & Stock trader. Here, we had collected top 10 rules/quotes of Jesse Livermore from his book “How to Trade in Stocks”. You can also apply this rule in your Stock Trading strategy. Jesse Livermore is one of the famous stock investor/trader who shorted the crash of 1907 & 1929 and make millions dollar fortune. He was born up in Massachusetts in 1877 and start his trading career at a very small age of fourteen . Initially, He lost 90% of his money and find out that His failure reason is just because of that He is not following his rules and listening other people’s advice. After that, He did not see back and start following his rules strictly and make millions of dollar through stock market.
Let’s go though some of popular Quotes/Rules of Jesse Livermore which is collected from his book;
- In this rule, He wants to say that Don’t try to speculate or trade based on rumors. Wait for confirmation from your trading setup. It is better to late for a trade rather than being wrong.
- He wants to states that Confirm your judgement from market also. Patience is the key to achieve profit calls.
- Don’t trade or watch too many stocks at a single time. It is not easy to watch/interpret/manage so many charts at a single time.
- His experience makes him believe that commitment to a stock helps in making profit.
- If you are in a right trade and making profit, Don’t act fast to cash it until/unless Market is not giving any intention to worry.
- If you are in a loss in any trade, Don’t try to average it. Accept that you did a mistake and take an exit or wait for signal.
- Don’t sell the stock just because it at the highest price.
- Accept if you had taken any trade wrongly. Don’t wait to increase your loss.
- Major movement of any market occurs at last 2 days of expiry. So, Don’t miss that movement.
- Try to withdraw ¼ portion from total of the profit and save it for the emergency purposes.
I hope, You all enjoyed this article. I again request all of you to Pre-Defined your trading rules before starting trading setup and accept mistakes if you ever done.