Jesse Livermore – the Greatest Trader Ever?
Livermore was a trend follower. He only took positions in the direction of the trend, and he added new positions whenever his system told him to do so.”We know that prices move up and down. They always have and they always will. My theory is that behind these major movements is an irresistible force. That is all one needs to know…Just recognize that the movement is there and take advantage of it by steering your speculative ship along with the tide.”
The basic rule to the Livermore System, therefore, is to take positions only in the direction of the trend. In or out. Long or short. No matter how many grams of silicon you want to throw at a modern, computer-based trading system it all comes down to those two choices. Livermore did not obligate himself to trade every day nor did he try to catch every countertrend jiggle. What did he do?
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