The Unchangeable Rules of Trading from Jesse Livermore.
For those traders accustomed to trading using various scripts, it is simply unimaginable that it is possible to do without them.
It should be noted that there are many examples in the history of trading where huge profits were achieved not only without technical analysis indicators, but also without using a trader's terminal.
An example is the legendary trader Jesse Livermore, which traded on the stock exchange back in the early twentieth century.
Moreover, he traded quite successfully, his best performance being earnings of 3 million dollars in one day.
Like many successful people, Jesse Livermore willingly shared his secrets with others, some of which were included in the book "The Life and Death of the Greatest Stock Speculator" http://time-forex.com/knigi/gizn-biga-spekulant
1. Strict discipline – only trading according to the rules will help you achieve success; as soon as you break the rules, losses appear.
2. Trading blue chips yields more stable profits – Livermore believed that profits could only be made on top-tier stocks. In some ways, this belief remains valid today, primarily due to the availability of information and reports on large companies.
3. Industry development – it is the industry's prospects that push stock prices upward, while a crisis in the industry reduces stock prices. In the forex market, economic growth contributes to the strengthening of the national currency.
4. Trend identification – and his analysis of how long ago the current trend was formed and how strong it is.
5. Market testing – the first trades are opened with small volumes, and once they start to generate profit, larger positions are opened.
6. Patience – do not rush into opening trades due to the first market movements or the resulting excitement.
7. Work and rest time – you can’t work all the time; a trader’s schedule must include time for rest and vacation.
8. The market doesn't change - or rather, the laws by which the price moves don't change, no matter how many years have passed, 10 or 100. There are always patterns causing exchange rate movement.
9. Market sentiment – try to learn to sense the market's mood, whether it's in the mood for active movement or slowing down. Modern charts are excellent at visualizing market dynamics, simplifying a trader's work.
It is clear that most of the recommendations are not suitable scalping trading, but they can be applied to other intraday strategies.
