Jesse Livermore is one of the most famous traders of all time, and his wisdom is still relevant today. In this third installment of our series, we’ll explore some of the key lessons that Livermore has to offer.
First, Livermore believed that the key to success in trading was to stay disciplined and focused. He was a firm believer in the power of patience and discipline, and he often said that the most successful traders were those who could stick to their trading plan and not be swayed by emotion.
Second, Livermore was a firm believer in the power of risk management. He believed that traders should always be aware of their risk exposure and should never take on more risk than they can handle. He also believed that traders should always have a plan for exiting a trade, and that they should never be afraid to cut their losses if the trade isn’t going their way.
Finally, Livermore was a firm believer in the power of diversification. He believed that traders should never put all their eggs in one basket, and that they should always diversify their investments across different asset classes. This way, they can reduce their risk exposure and increase their chances of success.
These are just a few of the key lessons that Jesse Livermore has to offer. By following his advice, traders can increase their chances of success and become more profitable in the long run.