Rules


Market Evolution

“There is nothing new in Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again.”

“It is not good to be too curious about all the reasons behind price movements”

Financial market has evolved and continue to evolve after Jesse time. With the introduction of complex products such as options, ETF, stock futures, HFT and electronics trading, the trending period is shorter but sharper.


Trend

“Buy rising stocks and sell falling stocks”

“Trade only when the market is clearly bullish or bearish”

“End trades when it is clear that the trend you are profiting from is over”

“Go long when stocks reach a new high. Sell short when they reach a new low”

“The highest profits are made in trades that show a profit right from the start”, “As long as a stock is acting right, and the market is right, do not be in a hurry to take profits”

“Never buy a stock because it has had a big decline from its previous high”, “Never sell a stock because it seems high-priced”


Long-term

“Do not trade every day of every year”

“Only enter a trade after the action of the market confirms your opinion and then enter promptly”


Cut-loss

“Continue with trades that show you a profit, end trades that show a loss”

“Never average losses by, for example, buying more of a stock that has fallen”

“Don’t become an involuntary investor by holding onto stocks whose price has fallen”


Trade sector leaders

“In any sector, trade the leading stock – the one showing the strongest trend”, “As long as a stock is acting right, and the market is right, do not be in a hurry to take profits”, The leaders of today may not be the leaders of two years from now.

“It is much easier to watch a few than many”


Market vs Stock

“As long as a stock is acting right, and the market is right, do not be in a hurry to take profits”, The leaders of today may not be the leaders of two years from now.

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.


Emotion

“Markets are never wrong – opinions often are”

“No trading rules will deliver a profit 100 percent of the time”

“The human side (emotion) of every person is the greatest enemy of the average investor or speculator”, “Patterns repeat, because human nature hasn’t changed for thousand of year”

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.


https://www.marcellagerwerf.com/jesse-livermore-quotes/
https://www.businessinsider.com/jesse-livermores-trading-rules-2014-9?IR=T