Saturday, August 19, 2006

A Lessons By Jesse Livermore

  1. Don't make a trade until all the odds are in your favor.
  2. Did not generally use the terms 'bull' or 'bear'.
  3. Determining the line of least resistance and buy at the correct point.
  4. Don't try and anticipate what the market will do next, go with evidence of what the market is telling you.
  5. Don't concern with why things are happening, only observe what is happening.
  6. You can beat a horse race, but you can't beat the races.
  7. There are no good stocks! There are only stocks that make money.
  8. Never become an involuntary investor by holding a declining stock.
  9. Don't buy your entire position all at one time, use probing technique (average upward - buying more as the stock goes up).
  10. Before buying a stock establish a profit target.
  11. Always establish a stop before making a trade.
  12. Put half the profit from a windfall trade in the bank.
  13. Keep the number of stocks you follow limited in order to focus.
  14. As long as a stock is acting right, and the market is right, do not be in a hurry to take profit.
  15. Stocks are never too high to begin buying or too low to begin selling short.
  16. All tips are dangerous - take no tips, see what you are believing.