Mr. Livermore's wise words

Jesse Livermore was one of the greatest traders of all time. At his peak in 1929, Jesse Livermore was worth $100 million, which in today's dollars roughly equates to $1.5-13 billion, depending on the index used.Jesse Livermore believed no matter how much we "feel" that we know what is happening, we need to wait for the market to confirm our thesis. And only when it does do we make our trades - and we must do so promptly. 

Jesse trading rules are:

• Trade with the trend.Buy in a bull market, short in a bear market

• Don't trade when there aren't clear opportunities.

• Wait for the market to confirm opinion before entering. Patience leads to "the big money."(enter on high of  previous candle in long trade and on the low in short trade).

• Let profits run. Close trades that show a loss (good trades generally show profit right away).(We have 10 days time stop)

• Trade with a stop, and know it before you enter.

• Exit trades where the prospect of further profits is remote (trend is over or waning).

• Trade the leading stocks in each sector; trade the strongest stocks in a bull market, or the weakest stocks in a bear market.

• Don't average down a losing position.

• Don't follow too many stock

In TRADEWITHME blog we are following his rules closely.                      

Mr. Livermore's wise words were:
"After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It was never my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight!"