📄 Jesse Livermore: 10 Timeless Trading Principles

The most legendary speculator of the early 20th century built his fortune by following these exact rules - and they still work today.

1. Much money comes from big moves

He made his fortune on multi-week trends, not on quick trades.

Money is made by sitting, not by trading.

2. Cut losses, let winners run

He held shorts until 1907 and 1929 - and never touched them early.

It was never my thinking that made a lot of money... it was always my sitting position.

3. Price action on fundamentals

He traded breakouts and ranges, not balance sheets.

Buy well, sit well.

4. Wait for confirmation

No guessing - only action after clear signals.

Being a little late is your insurance.

5. Fewer stocks, better focus

He preferred a tight watchlist.

It's much easier to watch a few than many.

6. Buy strength, sell weakness

He stayed in strong stocks until the market said otherwise.

As long as a stock acts right, stick with it.

7. Never average down

One of his main commandments.

Let that thought be indelibly written in your mind.

8. Take the first loss

Keep capital clean for the next real trade.

Profits take care of themselves, but losses never do.

9. Winners show up early

He knew it from experience - a good trade starts green.

10. Don’t force it

He only acted when the market gave him a reason.

Few people can always have adequate reasons to buy and sell daily.

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A hundred years later, these rules still separate professionals from the noise.#TradingStrategyMistakes