Jesse Livermore

I thought that it might be timely at this juncture in the equity markets to remind bull/bears of that 'leading light' and favorite of bull/bears, Jesse Livermore.
In addition to the famous "Reminiscences of a stock operator" by Edwin Lefevre, there are two very good books by Richard Smitten "Trade like Jesse Livermore" (2005) and "Jesse Livermore, The world's greatest trader" (2001).

Some of Jesse's trading principles were:
follow the line of least resistance
Patience is the key to success, not speed
Watch for key reversal pivot points marked by high volume, distribution and sector rotation- watch the leaders
follow the tape, not the news
cut your losses quickly
don't anticipate
emotion, not reason dictates the markets, and emotion carries the extremes
money management - never lose more than 10% of a trade

Peter Matthew
tw:peetee09

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Comment by Steven Vincent on October 6, 2009 at 2:50pm: Thanks for posting this Peter. We can never be reminded too often of the priceless and timeless lessons that Livermore teaches in his book. All traders should read it over and over again. Heck, it's here for FREE: http://www.thebullbear.com/forum/categories/the-library/listForCategory