THE TRUE AND FALSE LAWS IN SPECULATION
🎯 Jesse Livermore, the legend of speculation, once stated a fundamental law of the market:
- When you are wrong, you lose money.
- When you are right, you make money.
Therefore, you are only right when you make money, and you are wrong when you lose money. This law, while seeming simple, is the core truth in speculation and investment: the market does not care about justifications or personal emotions – it only cares about results.
💡 In speculation, financial results are the real measure of the correctness of a strategy. A decision is only truly right when it generates profit. The market does not reward "reasonable-sounding" ideas that do not produce money. This requires you to:
(1) Be objective: Do not let emotions or ego cloud your judgment.
(2) Be willing to admit mistakes: Cut losses quickly to minimize damage.
(3) Maximize profits when right: Focus on fully exploiting opportunities when you are on the right track.
Success is not about "always thinking you are right," but about the ability to adapt, adjust promptly, and optimize profits from correct decisions.
🔑 Core message: In speculation, actual results are the most honest test. Success comes from making money from correct decisions and minimizing losses from mistakes. Let the market guide you, always remain objective, and focus on results rather than reasons. Your account balance is the ultimate answer.
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📉 Wrong, money lost,
📈 Right, money in my pocket,
🎯 The truth of speculation.
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