trading tactics of Jesse Livermore

1. Nothing new ever occurs in the business of speculating or investing in securities and commodities.
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3. Money cannot consistently be made trading every day or every week during the year.
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5. Don’t trust your own opinion and back your judgment until the action of the market itself confirms your opinion.
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7. Markets are never wrong – opinions often are.
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9. The real money made in speculating has been in commitments showing in profit right from the start.
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11. At long as a stock is acting right, and the market is right, do not be in a hurry to take profits.
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13. One should never permit speculative ventures to run into investments.
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15. The money lost by speculation alone is small compared with the gigantic sums lost by so-called investors who have let their investments ride.
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17. Never buy a stock because it has had a big decline from its previous high.
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19. Never sell a stock because it seems high-priced.
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21. I become a buyer as soon as a stock makes a new high on its movement after having had a normal reaction.
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23. Never average losses.
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25. The human side of every person is the greatest enemy of the average investor or speculator.
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27. Wishful thinking must be banished.
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29. Big movements take time to develop.
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31. It is not good to be too curious about all the reasons behind price movements.
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33. It is much easier to watch a few than many.
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35. If you cannot make money out of the leading active issues, you are not going to make money out of the stock market as a whole.
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37. The leaders of today may not be the leaders of two years from now.
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39. 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.
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41. 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.