lessons from the greatest stock traders of all - aBOUT
lessons from the greatest stock traders of all - aBOUT
lessons from the greatest stock traders of all - aBOUT
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Livermore’s Strategies:<br />
• Understand <strong>the</strong> general trend <strong>of</strong> <strong>the</strong> market. You must one<br />
in tune with what <strong>the</strong> market is currently doing and be<br />
observant <strong>of</strong> it at <strong>all</strong> times. Watch and move with <strong>the</strong><br />
market; don’t fight against it.<br />
• Buy <strong>stock</strong>s hitting new highs in price as <strong>the</strong>y pass through<br />
certain resistance areas. Use a probing strategy to test your<br />
moves and pyramid additional buys on increases in price.<br />
• Cut your losses short. Protect yourself <strong>from</strong> a wrong<br />
decision at no more that a 10% loss. Sell drifting <strong>stock</strong>s, as<br />
<strong>the</strong>ir inaction is an opportunity cost.
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