Jesse Livermore is regarded by many on Wall Street as the world’s greatest trader. He started from zero, and made up to $100 million in the 1929 stock market crash.
He had an interesting approach to money management which helped to maximise his profits, whilst minimising the inevitable losses. This article discusses how he did this, and how you can use his insight in your own trading.
Use of stop losses is a trading commandment. Without them, you risk losing your entire account. This article is about how to select and place stop losses in order to protect your trading capital. Some traders get stopped out all the time, while others take on too much risk. Where should you place your stop losses?
The market opened higher, and the trader closed out his position. He remembered the well used adage “You can’t go broke taking a profit” as he rationalised his decision to himself. He forgot the disturbing corollary - you can’t get rich either. This article is about how to evaluate and maximise your trading profits (irrespective of whether you trade stocks, futures, forex or options) by learning about two important facts that are often not discussed.
Every game has its rules. Unlike chess, trading doesn’t have rules that are written down, but they exist nevertheless. Breaking the unwritten rules of trading will result in a high probability of you losing money. Here are some rules that you should follow when trading: Read more…