10 Top Stock Trading Systems - Stock Trading Tips

10 Top Stock Trading Systems - Stock Trading Tips

Stock Trading Tips

The following are excerpts from Reminiscences of a Stock Operator.

Jesse Livermore's Stock Trading Tips & Comments

1. Remember that stocks are
   never too high for you to begin buying or too low to
   begin selling. But after the initial transaction, don't
   make a second unless the first shows you a profit.
   
   


2. If a stock doesn't act
   right don't touch it; because, being unable to tell
   precisely what is wrong, you cannot tell which way it is
   going. No diagnosis, no prognosis. No prognosis, no
   profit.
   
   


3. Always sell what shows you
   a loss and keep what shows you a profit.
   
   


4. The principles of
   successful stock speculation are based on the supposition
   that people will continue in the future to make the
   mistakes that they have past.
   
   


5. Don't argue with the tape.
   Do not seek to lure the profit back. Quit while the
   quitting is good--and cheap.
   
   


6. Never buy a stock because
   it has had a big decline from its previous high.
   
   


7. There is only one side to
   the stock market; and it is not the bull side or the bear
   side but the right side.
   
   


8. Never act on tips.
   
   


9. The speculator's chief
   enemies are always boring from within. It is inseparable
   from human nature to hope and to fear. In speculation
   when the market goes against you hope that every day will
   be the last day--and you lose more than you should had
   you not listened to hope--to the same pioneers, big and
   little. And when the market goes your way you become
   fearful that the next day will take away your profit, and
   you get out--too soon. Fear keeps you from making as much
   money as you ought to. The successful trader has to fight
   these two deep-seated instincts. He has to reverse what
   you might call his natural impulses. Instead of hoping he
   must fear; instead of fearing he must hope. he must fear
   that his losses may develop into a much bigger loss, and
   hope that his profit may become a bigger profit. It is
   absolutely wrong to gamble in stocks the way the average
   man does.
   
   


10. A man must believe in
    himself and his judgment if he expects to make a living
    at this game.