@chainbasehq and use tags #chainbase Livermore's trading rules are a set of systematic trading strategies designed to help investors make informed trading decisions in the market. Here are the details of these rules:

1. Entry Timing

Livermore emphasized patience and waiting, advising investors to remain cautious until the market confirms their judgments. He believed that one should not easily enter the market before the trend is clear.

2. Money Management

Money management is at the core of Livermore's trading rules. He advised investors to strictly control risk, ensuring that the loss on each trade does not exceed a certain percentage of total capital to protect the principal.

3. Trend Following

Livermore believed that market trends are friends of investors, and trading in accordance with trends makes it easier to profit. He advised investors to identify and follow major trends, avoiding trades against the trend.

4. Stop Loss Strategy

Stop loss is an important tool to protect the portfolio. Livermore employed a 10% stop loss rule, and once a stock's loss reached 10%, he would decisively exit to prevent larger losses.

5. Market Validation

In making trading decisions, Livermore emphasized the importance of market validation. He advised investors to wait for the market to confirm their judgments, avoiding premature actions.

6. Avoid Frequent Trading

Livermore believed that frequent trading often leads to losses. He advised investors to remain calm and patient, waiting for suitable trading opportunities and avoiding unnecessary trades.

By following these rules, investors can better understand and apply Livermore's trading strategies, thus achieving better investment results in the market. For more detailed information, it is recommended to consult relevant financial books or materials.