Thread by @ThePupOfWallSt

10 Powerful Lessons from Trading Legend Jesse Livermore

He might be the most famous trader in the room. He started at 14 & by the stock market crash in 1929, he was worth over 100 million dollars. Although he lost his fortune, here are some lessons we can all learn from him.

1. Market Leaders - when in a bull market, pay attention to the leaders. This is where you will make the lion's share of your profits.

2. History Repeats - Greed & fear drive the market & human emotions are plain to see. If it happened in the past, it will happen again. Watch for patterns and observe the personality of the stocks you trade.

“History never repeats itself, but it does often rhyme.” - Mark Twain

3. Market Opinions - The markets are never wrong, but your opinions of it generally are. Don't let the market make a fool of you.
"The market can remain irrational longer than you can remain solvent." - John Maynard Keynes

4. Hand Sitting - Letting your winners run and cutting your losers early. Having patience & knowing when to trade & when to sit on your hands can make all the difference.

"The Stock Market is a device for transferring money from the impatient to the patient." - Warren Buffett

5. On Discipline - You must have a rule set & stick to it. These rules will set you up for success.

"Market analysis isn't the path to consistent results. It will not solve the trading problems created by lack of confidence, lack of discipline, or improper focus.” - M. Douglas

6. Compounding - Scale in on the way up and buy into strength.
“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn't … pays it.” - Albert Einstein

7. Stop Loss - Know your entry, your target, and where you are wrong. Cut your losers early.

"Put a 'stop-loss' order on your worries. Decide just how much anxiety a thing may be worth- and refuse to give it any more." - Dale Carnegie

You've made it to the end. 👏

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