A thread 🧵
Success is psychology, not strategy.
“Reminiscences of a Stock Operator” by Edwin Lefèvre reveals the brutal truths of the market.
Read these 7 key points to avoid the mistakes most traders never recover from (dark psychology):
6th point will blow your mind
Success is psychology, not strategy.
“Reminiscences of a Stock Operator” by Edwin Lefèvre reveals the brutal truths of the market.
Read these 7 key points to avoid the mistakes most traders never recover from (dark psychology):
6th point will blow your mind
1/7
Patience is as important as strategy.
Livermore made his biggest profits by waiting for the right setups and trends to develop.
He was never jumping in and out…
Sitting on your hands is a skill you need to develop if you want to be a consistent trader.
Patience is as important as strategy.
Livermore made his biggest profits by waiting for the right setups and trends to develop.
He was never jumping in and out…
Sitting on your hands is a skill you need to develop if you want to be a consistent trader.
2/7
Focus on a few markets.
Livermore specialised in a few certain stocks rather than trying to trade everything.
Choose your stock and become an expert.
Focus on a few markets.
Livermore specialised in a few certain stocks rather than trying to trade everything.
Choose your stock and become an expert.
3/7
Follow the market, not your opinion.
Livermore always said, “The market is never wrong.”
Let price action guide your decisions, not your ego and feelings.
Follow the market, not your opinion.
Livermore always said, “The market is never wrong.”
Let price action guide your decisions, not your ego and feelings.
4/7
Big money is made in the big moves.
You will never build wealth by jumping in and out of short-term trades.
I know, they are tempting,
But the biggest wins come from holding onto trends that last months or years.
Big money is made in the big moves.
You will never build wealth by jumping in and out of short-term trades.
I know, they are tempting,
But the biggest wins come from holding onto trends that last months or years.
5/7
Never rely on “tips” or “rumours.”
Avoid them like fire.
Livermore always warned against following tips from others.
Do your own research and trust your analysis.
Never rely on “tips” or “rumours.”
Avoid them like fire.
Livermore always warned against following tips from others.
Do your own research and trust your analysis.
6/7
Cut losses without hesitation.
When Livermore ignored his own rule to cut losses quickly, he paid the price…
He not only lost his wealth but also his life…
Livermore ended his life in 1940.
If you want to avoid ending up like Livermore, then protecting your capital is non-negotiable.
Cut losses without hesitation.
When Livermore ignored his own rule to cut losses quickly, he paid the price…
He not only lost his wealth but also his life…
Livermore ended his life in 1940.
If you want to avoid ending up like Livermore, then protecting your capital is non-negotiable.
7/7
Success comes from discipline.
Livermore’s wins came when he followed his rules.
His losses came when he didn’t.
(Losing your wealth is definitely a loss)
Discipline always pays off in the long run.
Success comes from discipline.
Livermore’s wins came when he followed his rules.
His losses came when he didn’t.
(Losing your wealth is definitely a loss)
Discipline always pays off in the long run.
These 7 lessons from Jesse Livermore’s story are absolutely timeless.
All profitable traders follow them to this day.
Follow @BearBullTraders for more and let me know which one resonates with you the most?
All profitable traders follow them to this day.
Follow @BearBullTraders for more and let me know which one resonates with you the most?
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