Open trading account 
Dear friends,
In the previous blogs,we analysed some forex pairs , charts , Pivot points and technical analysis.
Today we will see an useful post for beginners who want to improve their discipline in the art of trading.
Jesse Livermore (1877 – 1940), also known as the Boy Plunger and "Great Bear of Wall Street", was an American stock trader. He was famed for making and losing several multi-million dollar fortunes ( today's equivalent of billions ) and short selling during the stock market crashes in 1907 and 1929.
Everybody knows that the book - Reminiscences of a Stock Operator by Edwin Lefèvre (best-selling biography of Livermore) is among the top ten best books in the stock market.
But there is another little known but equally good book ( but out of print now )The book is The Stock Market Secrets of Jesse Livermore, by C.M. Flumiani.
It has a chapter which gives in a nutshell about Jesse Livermore's investment philosophy. Though some rules apply for investment,i give those precious other rules which are applicable and maybe the golden rules in forex trading.
SOME OF THE GOLDEN RULES :
1. Get - rich - quick adventurers will die poor ...
2.TRADE NOT WHAT YOU THINK ; BUT TRADE WHAT YOU SEE ( This is my favourite rule ).
3.Markets are never wrong. But opinions are.
4.Speculators insure themselves against large losses by taking the first small loss.
5.Profits always take care of themselves ; but losses never do.
6.Many lost their capital by short selling after a very huge rally....when it seemed too high......
7.Do not buy a stock because of a decline from its previous high...that may still be too high...
8.In my method of trading i buy a stock after it makes a new high ( and vice versa ).
9.I never buy on reactions ( i.e.stock crashing down ). I never sell on rallies.
10.DO NOT AVERAGE LOSSES.NO SPECULATOR CAN STAND THE PRESSURE OF AVERAGING LOSSES.
We will discuss some of these rules in detail in later blogs.
HAPPY TRADING, KUTTY.
In the previous blogs,we analysed some forex pairs , charts , Pivot points and technical analysis.
Today we will see an useful post for beginners who want to improve their discipline in the art of trading.
Jesse Livermore (1877 – 1940), also known as the Boy Plunger and "Great Bear of Wall Street", was an American stock trader. He was famed for making and losing several multi-million dollar fortunes ( today's equivalent of billions ) and short selling during the stock market crashes in 1907 and 1929.
Everybody knows that the book - Reminiscences of a Stock Operator by Edwin Lefèvre (best-selling biography of Livermore) is among the top ten best books in the stock market.
But there is another little known but equally good book ( but out of print now )The book is The Stock Market Secrets of Jesse Livermore, by C.M. Flumiani.
It has a chapter which gives in a nutshell about Jesse Livermore's investment philosophy. Though some rules apply for investment,i give those precious other rules which are applicable and maybe the golden rules in forex trading.
SOME OF THE GOLDEN RULES :
1. Get - rich - quick adventurers will die poor ...
2.TRADE NOT WHAT YOU THINK ; BUT TRADE WHAT YOU SEE ( This is my favourite rule ).
3.Markets are never wrong. But opinions are.
4.Speculators insure themselves against large losses by taking the first small loss.
5.Profits always take care of themselves ; but losses never do.
6.Many lost their capital by short selling after a very huge rally....when it seemed too high......
7.Do not buy a stock because of a decline from its previous high...that may still be too high...
8.In my method of trading i buy a stock after it makes a new high ( and vice versa ).
9.I never buy on reactions ( i.e.stock crashing down ). I never sell on rallies.
10.DO NOT AVERAGE LOSSES.NO SPECULATOR CAN STAND THE PRESSURE OF AVERAGING LOSSES.
We will discuss some of these rules in detail in later blogs.
HAPPY TRADING, KUTTY.
