TOP 21 TRADING RULES OF JESSE LIVERMORE

TOP 21 TRADING RULES OF JESSE LIVERMORE

1. In order of importance to me are: (1) the long-term trend, (2) the current chart
pattern, and (3) picking a good spot to buy or sell. Those are the three primary
components of my trading. Way down in very distant fourth place are my fundamental
ideas and, quite likely, on balance, they have cost me money.

2. If I am bullish, I neither buy on a reaction, nor wait for strength; I am already in. I turn
bullish at the instant my buy stop is hit, and stay bullish until my sell stop is hit. Being
bullish and not being long is illogical.

3. If I were buying, my point would be above the market. I try to identify a point at which
I expect the market momentum to be strong in the direction of the trade, so as to
reduce my probable risk.

4. I set protective stops at the same time I enter a trade. I normally move these stops in
to lock in a profit as the trend continues. Sometimes, I take profits when a market gets
wild. This usually doesn’t get me out any better than waiting for my stops to close in,
but it does cut down on the volatility of the portfolio, which helps calm my nerves.
Losing a position is aggravating, whereas losing your nerve is devastating.

5. Before I enter a trade, I set stops at a point at which the chart sours.

6. The markets are the same now as they were five to ten years ago because they keep
changing – just like they did then.

7. Risk is the uncertain possibility of loss. If you could quantify risk exactly, it would no
longer be risk.

8. Speculate with less than 10% of your liquid net worth. Risk less than 1% of your
speculative account on a trade. This tends to keep the fluctuations in the trading
account small, relative to net worth.

9. I usually ignore advice from other traders, especially the ones who believe they are on
to a “sure thing”. The old timers, who talk about “maybe there is a chance of so and
so,” are often right and early.

10. Pyramiding instructions appear on dollar bills. Add smaller and smaller amounts on
the way up. Keep your eye open at the top

11. Trend systems do not intend to pick tops or bottoms. They ride sides.

12. The key to long-term survival and prosperity has a lot to do with the money
management techniques incorporated into the technical system. There are old
traders and there are bold traders, but there are very few old, bold traders.

13. The manager has to decide how much risk to accept, which markets to play, and how
aggressively to increase and decrease the trading base as a function of equity
change. These decisions are quite important—often more important than trade timing.

14. The profitability of trading systems seems to move in cycles. Periods during which
trend-following systems are highly successful will lead to their increased popularity.
As the number of system users increases, and the markets shift from trending to
directionless price action, these systems become unprofitable, and undercapitalized
and inexperienced traders will get shaken out. Longevity is the key to success.

15. Systems don’t need to be changed. The trick is for a trader to develop a system with
which he is compatible.

16. I don’t think traders can follow rules for very long unless they reflect their own trading
style. Eventually, a breaking point is reached and the trader has to quit or change, or find a new set of rules he can follow. This seems to be part of the process of evolution
and growth of a trader.

17. Trading Systems don’t eliminate whipsaws. They just include them as part of the
process.

18. The trading rules I live by are: (1) Cut losses. (2) Ride winners. (3) Keep bets small. (4)
Follow the rules without question. (5) Know when to break the rules.

19. The elements of good trading are: (1) cutting losses, (2) cutting losses, and (3) cutting
losses. If you can follow these three rules, you may have a chance.

20. If you can’t take a small loss, sooner or later you will take the mother of all losses.

21. One alternative is to keep bets small and then to systematically keep reducing risk
during equity draw downs. That way you have a gentle financial and emotional
touchdown.

Related Posts

TOP 16 TRADING RULES OF RICHARD RHODES

March 17, 2019

TOP 23 TRADING RULES OF WILLIAN J O’NEIL

March 17, 2019

TOP 9 TRADING RULES OF DAN ZANGER

March 17, 2019

TOP 13 TRADING RULES OF PAUL TUDOR JONES

March 17, 2019

TOP 17 TRADING RULES OF JESSE LIVERMORE

March 15, 2019

125 thoughts on “TOP 21 TRADING RULES OF JESSE LIVERMORE”

  3. Good – I should definitely pronounce, impressed
    with your web site. I had no trouble navigating through
    all the tabs as well as related information ended up being
    truly simple to do to access. I recently found what I hoped for before
    you know it at all. Quite unusual. Is likely to appreciate it for those who add
    forums or something, website theme . a tones way for your customer to
    communicate. Nice task.

    my web-site: https://silencilreview.net/

    Reply

  8. Hello there! Quick question that’s completely off topic.
    Do you know how to make your site mobile friendly? My website looks weird when browsing from my
    apple iphone. I’m trying to find a theme or plugin that might be able to correct this issue.
    If you have any recommendations, please share. Thank you!

    Here is my blog post … bitte weiter zum Link

    Reply

  13. Aw, this was a really nice post. Taking the time and actual effort to
    create a really good article… but what can I say… I procrastinate a lot and never
    manage to get anything done.

    Reply

  16. Hi are using WordPress for your blog platform? I’m new to the blog world but I’m trying to get started and
    create my own. Do you require any coding knowledge to make your own blog?
    Any help would be greatly appreciated!

    Reply

  21. I’m really loving the theme/design of your website.
    Do you ever run into any browser compatibility problems?

    A few of my blog readers have complained about my website not working correctly
    in Explorer but looks great in Opera. Do you have any suggestions to help fix this
    issue?

    Reply

  24. Thank you for the blog post. Jones and I are saving for our new guide on this subject and your post has
    made all of us to save money. Your opinions really solved all our questions.

    In fact, in excess of what we had thought of prior to when we came upon your great
    blog. We no longer have doubts and a troubled mind because you have attended to all of our needs here.
    Thanks

    my site … https://trainingteachers.org.za/groups/cancer-cures-part-4-grape-seeds-396740152/

    Reply

  29. Have you ever considered creating an e-book or guest authoring
    on other sites? I have a blog based on the same topics you discuss and would love to have you share some
    stories/information. I know my subscribers would enjoy your
    work. If you’re even remotely interested, feel free to shoot me an e mail.

    Feel free to visit my homepage – [ПЕРЕЙТИ]

    Reply

  33. What i do not realize is in fact how you are no longer actually much
    more neatly-favored than you may be now. You are so intelligent.

    You know therefore considerably on the subject of this topic, made me individually consider it from
    numerous various angles. Its like women and men aren’t interested except it is one thing
    to do with Lady gaga! Your own stuffs outstanding.
    At all times take care of it up!

    My homepage: https://solohostbook.com/index.php/Holley88F342250682

    Reply

  34. May I simply say what a comfort to uncover somebody who really understands what they’re talking about on the web.
    You actually understand how to bring an issue to light and make it important.
    More people have to look at this and understand this side of the story.
    I was surprised that you are not more popular given that you surely
    have the gift.

    Also visit my blog – http://superketomax.org/

    Reply

  40. Heya are using WordPress for your site platform? I’m new
    to the blog world but I’m trying to get started and set up my own. Do you need any html coding knowledge to make your own blog?

    Any help would be greatly appreciated!

    Also visit my homepage: Ceremony CBD

    Reply

  44. I’ve been browsing on-line greater than three hours nowadays, yet
    I by no means discovered any interesting article like yours.
    It is lovely price sufficient for me. Personally, if all webmasters and bloggers
    made excellent content as you did, the internet will probably be
    a lot more useful than ever before.

    Look into my site :: Self Cam Pro Review

    Reply

  46. Thanks so much for giving me an update on this theme on your website.
    Please know that if a new post becomes available or in the event that any alterations occur on the current posting, I would be thinking about reading a
    lot more and finding out how to make good usage of those methods
    you write about. Thanks for your efforts and consideration of other men and women by making this blog available.

    Also visit my webpage :: [ПЕРЕЙТИ]

    Reply

  59. You are so cool! I don’t think I have read through a
    single thing like that before. So wonderful to discover another person with a few original thoughts on this subject matter.
    Really.. thank you for starting this up. This site is one thing that is required on the internet, someone with
    a bit of originality!

    Stop by my website :: http://virilyn.com/

    Reply

  69. Hi! Quick question that’s completely off topic.
    Do you know how to make your site mobile friendly?
    My site looks weird when viewing from my iphone 4.
    I’m trying to find a template or plugin that might be able to resolve this problem.
    If you have any suggestions, please share. Appreciate it!

    Feel free to surf to my web blog: Grown N Flow

    Reply

  73. When someone writes an piece of writing he/she
    retains the thought of a user in his/her brain that
    how a user can know it. Thus that’s why this paragraph is outstdanding.

    Thanks!

    Reply

  74. Today, while I was at work, my cousin stole my apple ipad
    and tested to see if it can survive a forty foot drop, just so she
    can be a youtube sensation. My apple ipad is now broken and she has
    83 views. I know this is entirely off topic but
    I had to share it with someone!

    Reply

  75. Heya this is kinda of off topic but I was wondering if blogs use
    WYSIWYG editors or if you have to manually code with HTML.
    I’m starting a blog soon but have no coding skills so I wanted to get advice from someone with experience.

    Any help would be greatly appreciated!

    Reply

  76. I am now not positive where you are getting your information, but great topic.
    I must spend some time studying more or working out more. Thanks for wonderful info I used to be looking for this information for my mission.

    Reply

  77. You made some good points there. I checked on the
    internet for more info about the issue and found most
    people will go along with your views on this web site.

    Reply

  78. Greate article. Keep posting such kind of information on your site.
    Im really impressed by your blog.
    Hey there, You’ve performed a great job. I’ll definitely digg
    it and in my opinion suggest to my friends. I am confident they’ll be benefited from this site.

    Reply

  79. Hello, i read your blog from time to time and i own a similar one and i was just wondering if you get a lot of spam
    responses? If so how do you protect against it, any plugin or anything you can advise?

    I get so much lately it’s driving me mad so any support is very much appreciated.

    Reply

  89. Wow, awesome weblog layout! How long have you
    been blogging for? you make running a blog glance easy.
    The entire glance of your site is great, as
    smartly as the content material![X-N-E-W-L-I-N-S-P-I-N-X]I just couldn’t depart
    your web site before suggesting that I extremely loved the standard information an individual supply for your guests?
    Is going to be again often to check out new posts.

    Stop by my web-site; https://fitburnketo.com/

    Reply

  94. When I originally commented I appear to have clicked on the -Notify me when new comments are added- checkbox and now each time a comment is
    added I recieve four emails with the exact same comment. There has to be a means you are able to remove me from
    that service? Kudos!

    My blog post; Male Max 100 Reviews

    Reply

  115. Greetings I am so glad I found your site, I really found you by accident,
    while I was searching on Aol for something else, Nonetheless I am here
    now and would just like to say many thanks for a tremendous post and
    a all round exciting blog (I also love the theme/design),
    I don’t have time to read it all at the minute but I have saved it and also
    included your RSS feeds, so when I have time I will be
    back to read a lot more, Please do keep up the awesome work.

    Reply

  125. My partner and I absolutely love your blog and find nearly all of your post’s to be what precisely I’m looking for.

    Would you offer guest writers to write content for
    you personally? I wouldn’t mind composing a post or elaborating on some of the subjects you write about here.
    Again, awesome weblog!

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *