Livermore's 16 trading rules
1. When I see a danger signal, I don't argue with it, I get out of the way! A few days later, if everything looks good, I'll come back. In this way, I will save a lot of trouble and a lot of money.
2. If you want to make money in trading, you have to show profits at the beginning. Those things that show floating losses after buying or selling indicate that you are making mistakes. Generally speaking, if there is still no improvement within three days, throw it away immediately.
3. Never spread the losses, and you must remember this principle firmly.
4. After the price enters an obvious trend, it will automatically run along a specific route throughout its entire trend.
5. Good traders are always waiting, always patient, waiting for the market to confirm their judgment. Remember, don't fully believe in your judgment until the market itself confirms your opinion.
6. Remember this: when you do nothing, those losers who feel that they must trade every day are laying the foundation for you, and you will find opportunities to make profits from their mistakes.
7. As long as you recognize where the trend appears and follow the trend to steer your trading boat, you can benefit from it. Don't argue with the market, and most importantly, don't compete with the market.
8. No matter when, I have the patience to wait for the market to reach the position I call the "key point". Only at this time, I start to enter the market for trading. In my operation, as long as I do this, I can always make money. Because I start trading at the psychological moment when a trend just begins, I don't have to worry about losing money. The reason is very simple. I happened to enter the market decisively and start following up when my personal principles told me to take action immediately. Therefore, all I have to do is sit still and watch the market develop according to its market conditions. I know that if I do this, the performance of the market itself will give me a signal to close my position at the right time.
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