Quote from: http://www.michaelsincere.com/articles/3-articles/23-six-trading-lessons-from-speculator-jesse-livermore
Livermore explained some of the methods he used to buy and sell stocks. One of his methods was to buy as soon as a stock made a new high, which he said will almost certainly bring him profits. Later, he elaborates: “I have often said that to buy on a rising market is the most comfortable way of buying stocks. Now, the point is not so much to buy as cheap as possible or go short at top prices, but to buy or sell at the right time.” He adds that he scales into or out of a stock as it rises or falls.
Livermore closely studied prices for clues to market direction. “Prices, as we know, will either move up or down according to the resistance they encounter. For purposes of easy explanation we will say that prices, like everything else, move along the line of least resistance.”
He warns, however, that although this method sounds easy, you always have to guard against your natural impulses: fear; hope; greed, and, most important, a swelled head.
Livermore closely studied prices for clues to market direction. “Prices, as we know, will either move up or down according to the resistance they encounter. For purposes of easy explanation we will say that prices, like everything else, move along the line of least resistance.”
He warns, however, that although this method sounds easy, you always have to guard against your natural impulses: fear; hope; greed, and, most important, a swelled head.
