Thread by @chartmojo

Top leanings from the life of Jesse Livermore (legend of trading).

A detailed thread 🧵👇
#LearnWithChartmojo #stocks #trading

(1/16)

"Successful trading is always an emotional battle for the speculator, not an intelligent battle".

Managing emotions is considered to be the most difficult task. Calmness combined with patience in the chaos leads to success.

(2/16)

“It is what people actually did in the stock market that counted – not what they said they were going to do".

A trader cannot stick to his/her words and continue. Rather they have to change their colors like chameleon considering the market situation to earn profit.

(3/16)

“If you can’t sleep at night because of your stock market position, then you have gone too far".

One should know their capacity to handle the position. Oversize positioning might lead to an imbalance of mental health by creating mental pressure.

(4/16)

“The trend is your friend".

All traders should fit this in their minds and should never go against your friend. Rather it will help a trader to achieve the targets by just following the trend.

(5/16)

“Only make a big move, a real big plunge, when the majority of factors are in your favor.”

A trader should go beyond the risk exposure when trading relevant factors that are similar to the direction of the market. That's when one can feel confident and go for big move.

(6/16)

“Never take a capital loss of more than 10%.”

A trader isn't someone who is not disciplined and has little protection of capital. He/she should be highly focused and should prioritize to safeguard the capital from which they could earn.

(7/16)

“Don’t take tips of any kind, no matter where they come from.”

A trader shouldn't believe in anyone rather than himself. They should not trade based on other people's opinions and shall rather know their own risk exposure.

(8/16)

“The stock market is the greatest, most complex puzzle ever invented and it pays the biggest jackpot.”

There is no easy money. Solving complex situations with ease provides you with the minting machine confidence once you follow the rules.

(9/16)

“It was never my thinking that made the big money for me. It always was my sitting".

A trader always sticks to his strategies and doesn't think about the results. Believing in the process rewards you with money rather than just thinking about the money.

(10/16)

“I believe that the public wants to be led, to be instructed, to be told what to do".

A trader is someone who is considered to be the captain of the team. They provide useful information to the general public to help them understand the scenario of the market.

(11/16)

“Remember that stocks are never too high for you to begin buying or too low to begin selling".

No one can decide the top or bottom of any stock. Nor any price is cheap to buy neither any price is expensive to sell.

(12/16)

“I believe that having the discipline to follow your rules is essential".

Rules are something that is made to be followed. If the trader breaks them then the market will break their profit. Systematically following rules will lead to tremendous growth.

(13/16)

“I trade on my own information and follow my own methods".

A trader should always ignore the noise from the exterior world and focus on the process. It helps the trader to know the risk-reward ratio rather than just trading on others' information.

(14/16)

“Don’t be fooled by the charisma of other traders".

Never try to copy anyone by ignoring your own trading system. It might give you the benefits in short term but in the long-run when a complex situation arises, we might get fooled.

(15/16)

“Trading is not a get-rich-quick scheme".

Trading requires a lot of consistency and patience. If a trader loses both then the market will sack him rather than reward him.

(16/16)

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