Livermore, who was begging the US government to close his positions, did this:

1. Buy 20% first

2. If you buy the wrong stock and lose 10%, stop loss immediately, and the amount of loss is 2% of the total position.

3. If you buy the right stock and make a profit of 10%, add 20% immediately, and if it rises by 10%, add another 20%, and the last time add 40% directly to expand the victory. Then hold as long as you don’t lose 10%. Once it falls by 10%, close the entire position immediately.

The central idea is this, to minimize the risk