The Unchangeable Rules of Trading from Jesse Livermore.
For those traders who are accustomed to trading using various scripts, it is simply unthinkable to imagine that they can do without them.
Moreover, it should be noted that in the history of trading there are many examples when huge profits were obtained not only without technical analysis indicators, but also without using the trader’s terminal.
An example would be the legendary trader Jesse Livermore, who traded on the stock exchange at the beginning of the twentieth century.
Moreover, he traded quite successfully; his best results were earnings of $3 million per day.
Like many successful people, Jesse Livermore willingly shared his secrets with others, some of them were given 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 brings more stable profits - Livermore was sure that he could only make money on first-tier shares. To some extent, this belief is still true today, primarily the availability of information and reporting on large companies.
3. Development of the industry - it is the prospects of the industry that push the price of shares upward and, conversely, a crisis in the industry reduces the price of shares. In relation to the Forex market, economic growth contributes to the strengthening of the national currency.
4. Trend Determination – and his analysis of how long ago the current trend formed and how strong it is.
5. Testing the market - the first transactions are opened in small volumes, after they begin to make a profit, larger positions are opened.
6. Patience – you should not rush to open transactions under the influence of the first market movements or the emerging rush.
7. Time for work and rest – you cannot work all the time; a trader’s routine must include time for rest and vacation.
8. The market does not change - or rather, the laws by which the price moves do not change, no matter how many years have passed, 10 or 100. They always exist patterns causing exchange rate movement.
9. Market mood - try to learn to feel the market when it is in the mood to actively move or when it falls asleep, slowing down its movement. Modern charts perfectly visualize market dynamics, simplifying the trader’s work.
It is clear that most recommendations do not apply scalping trading, but they can be applied to other intraday strategies.