Legendary Trader - Jesse Livermore
Jesse Livermore was a notorious stock market speculator during the first half of the 20th century. He was a major force on Wall St in markets that were plagued by the same hopes and fears as today's. ďReminiscences of a stock operatorĒ in 1923 offers timeless insight and wisdom for traders offered by Livermore. Lessons taught can be applied to todayís markets:
- Use a system and donít deviate from it.
- If a market doesnít act right do not touch it; being unable to tell precisely what is wrong, means you cannot tell which way the market is going.
- Donít blame the market for losses.
- Do not seek to lure profit back. Quit while the quitting is good- and cheap.
- A Speculators chief enemy is boredom, donít seek a trade let the trade seek you.
- Use money management at all times.
- Establish a trading plan.
- Detail and analyse each trade thoroughly.
- Establish entry and exit points and risk reward ratios.
- Accept small losses as part of the game.
- Do not concentrate on breakeven levels when you are losing.
- Develop a trading plan for every possible situation that might occur.
- Follow exit plans with rigid discipline.
- Do not be overly cautious, simple trades are best.
- Sustain patience; big movements can take a long time.
We hope these pearls of wisdom help.