"The Speculation Rule": 12 rules written by "The Legend" Jesse Livermore with his tears! If you break one.. the market will break you! 📉📜💰
There is a big difference between a "gambler" and a "trader", and the whole secret lies in this list.
Normally: The beginner is looking for the "entry secret" and the best technical indicator to win quickly.
What’s happening (the truth): The genius Jesse Livermore (who made 100 million dollars in one day in 1929) tells you the secret is not in entry.. the secret is in "Risk Management". Each of these rules carries the price of bankruptcy and real pain, and it’s the dividing line between continuing in the market or going "bankrupt" in a month.
Let's "dissect" this survival recipe, and why "loss cooling" is the graveyard of accounts, and how "hope" is the biggest enemy of your portfolio. 👇🧠
1. The loss guillotine: Cut immediately! ✂️🩸
The top 3 rules to protect your capital:
Never average a losing position: When the price reverses on you, don't buy again to improve the average. This is the way that turns a "small loss" into a deadly catastrophe.
Stop loss is sacred: A trade without (Stop Loss) is a bet without limits.
Cut quickly: Losses should be taken immediately and without debate. Don't think.. run away.
2. The art of dealing with profit: Patience then reinforcement 📈💎
How to create wealth?
Let winners run: Big money comes from very few successful trades, not from many small ones.
Sit tight: When you are right, be patient. "Lack of patience" loses more profits than a wrong entry.
Pyramiding: Increase your position size when you are winning.. Never increase when you are losing.
3. Psychology and the trend: Do not fight the sea 🌊🧠
The golden rules for mindset:
Do not trade on "hope": Hope is not a strategy.. Hope is an admission that you are wrong and pretending.
The market is the judge: Your opinion has no value until the price confirms it.
Follow the trend: Fighting the main direction is the fastest way to ruin.
Clarity: If the market is not clear, stay out. (No position is a position).
4. The final judgment: Survival before wealth ⚖️🛡️
The summary in rule number 12: "Protect your capital before anything else."
You can't recover your losses if you are out of the game (Wiped out).
The professional is not the one who wins every time; the professional is the one who, when he loses.. loses little, and when he wins.. he dominates the market.
The strategic question:
Honestly and without denial.. What is the most rule among these 12 that you always break and is the reason for your loss? (Personally, I used to fall into the "cooling" trap).
Share your experience.. Do you adhere to stop loss or leave it to circumstances? 👇📉