Jesse Livermore Quotes on Importance of Trading Rules

By
David
– July 29, 2011Posted in:

We are the sum total of our experience.

I believe that having the discipline to follow your rules is essential. Without specific, clear, and tested rules, speculators do not have any real chance of success.

What beat me was not having brains enough to stick to my own game – that is, to play the market only when I was satisfied that precedents favored my play… No man can have adequate reasons for buying or selling stocks daily.

When you make a trade, you should have a clear target where to sell if the market moves against you. And you must obey your rules! Never sustain a loss of more than 10% of your capital. Losses are twice as expensive to make up. I always established a stop before making a trade.

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