The best OLD ideas about trading from Jesse Livermore’s quotes
The original book is available for Free download in PDF ⤵⤵⤵
Jesse Livermore’s quotes from 100 years ago have not lost their relevance to today’s stock, Forex, and cryptocurrency markets.
After analyzing more than 100 quotes from the book, I present the best ideas and rules in a shorter form for your easy reading and understanding.
Actual Trading Ideas & Rules from Jesse Livermore Quotes:
Believe in yourself and your judgment if you expect to make a living from trading.
You start to learn what to do to win when you know what not to do to avoid losing money.
“A stock operator has to fight a lot of expensive enemies within himself.”
Primitive ideas have never made a lot of money. But persistence, yes.
Bull markets have a lot of early bulls and bear markets have a lot of early bears.
Men who can be right and sit back at the same time are rare.
Speculation is one of the hardest things to learn, and once a trader has a firm grasp of it, he (or she) can make a lot of money.
The desire of traders for constant action is the cause of many losses in the financial markets.
Never argue with the market, it won’t lead to anything good.
Cut your losses fast and without hesitation. Stop loss is the key to risk limitation and protection of your capital.
A professional trader cares about doing the right thing, not about making money, knowing that the profits will take care of themselves.
A trader plays the game like a professional billiard player. He looks far ahead instead of thinking about the separate shot.
The best quality of a trader is the ability to wait. He waits until he sees the money, and all he has to do is get it.
Don’t worry about market fluctuations. In fact, you should love them because they provide you with opportunities.
A trader doesn’t try to catch every move, he catches the ones that are most profitable.
He knows there are times when it’s better to stay out of the market.
The trader doesn’t mind missing a move, he knows there will always be another one.
“No man can always have adequate reasons for buying or selling stocks daily or sufficient knowledge to make his play an intelligent play.”
The trader takes losses because he knows that stop losses are part of the trading game.
Professionals don’t over-trade. They know that over-trading means going against their own rules and getting themselves into trouble.
Both emotions are irrelevant in the long run: bragging about wins and whining about losses.
Know that the market is always right and the trader is often wrong.
If a stock is not acting right — don’t trade it. Because it is impossible to tell exactly what is wrong and in which direction the market is moving.
There is the simple fool who always and everywhere does the wrong thing. And there is the market fool who thinks he should trade all the time.
The big money lies not in individual fluctuations, but in the main trend movement.
Fate does not always allow you to set tuition fees. And you have to pay for market education, no matter how much it costs.
The speculator’s mortal enemy is greed, fear, and hope. These can’t be eliminated from the human personality.
A good trader should never fall in love with his stocks, commodities, or opinions about them.
A trader should never imagine that he knows more than anyone else about what makes prices go up and down.
A speculator must maintain a balance: always be confident and cool, calm and collected.
A trader must be patient and persistent: not expect to make a fortune in a day, week, or month.
The best qualities of a trader are self-control and self-discipline: they do not allow emotions and impulses to take over.
You must have keen observation and good memory and not forget the lessons of your speculation and investment experience.
Have a clearly defined trading plan and goal. Don’t act on hunches, advice, or hints.
The only way to make money: buy cheaper and sell more expensive.
How to survive in the stock market? Respect the market, respect the tape, respect the trend, respect the rules, respect yourself, and respect the game.
How to trade a market boom? Get in early, follow the trend, take partial profits along the way and get out before the crash.
How to trade with leverage? Use it wisely, have adequate reserves, increase your risks when the market is in your favor, and don’t overstay your welcome.
To be happy enjoy what you do and love what you do.
Conclusion
Most of his time-tested trading rules can be boldly applied in your trading on financial markets.
Use his rules in your trading and you will be able to save and increase your capital.
📖 The original copy of the book Reminiscences of a Stock Operator is available for free download in PDF Here.
