22 February 2007
Hi! Stock Lobang,
Thanks for the two books sent to me and for your guidance of openning them.
I spent a whole day to complete reading from cover to cover of the book - Trade Like Jesse Livermore. I learned something from Jesse Livermore said to be the greatest trader in the world.
Summary of the thoughts of Jesse Livermore
trend - buy only in an uptrend, short only in a down trend, which is the same as my rule in general.
one day reversal - very useful, finally I got a complete understanding of this important TA skill, though I learned from other books but did not understand fully. I used it to analyse a few stocks and found this concept very useful and important. I guess this concept can be extended to cover one week reversal and one month reversal, too.
probe buys - buy 20%, add 20%, add 20%, add final 40%.
buy new high
mandatory cut loss level - 10%, I lost big in Longcheer, China Life due to allowing loss to exceed 10%
buy at Pivotal point confirmed by heavy volume
buy at continuation pivotal point confirmed by heavy volume
buy at major pivotal point confirmed by heavy volume
buy only strongest market leaders in an industry group
never average down - I averaged down for both Longcheer and China Life despite initial paper losses
Give no tips - I'll learn to do that
Take no tips - I'll learn to do that, part of reason losing big in
Longcheer due to stubborn bullish view of DBSV
Play a lone hand - be secretive and silent in stock trading - I have to learn to do that
Never buy a stock on reactions (corrections - 7777777) and never short a stock on rallies - I buy most stocks on reactions, ie, buy at short term support during correction, which does not comply with Jesse, need to review.
Patience, patience, patience - wait for all factors in favor of you appear before committing trading capital. for me (7777777 = Toptrader), I need to wait for all the basic conditions set in my trading system to be mature before buying. but emphasize safety of trading capital as for selling, ie, sell once bearish signal appears, no need to wait for a lot of bearish sell signals to appear - that will be too late and cost me money.
Money management
story: Jesse Livermore suicided by shooting himself at last, a sad end...
Thanks for the two books sent to me and for your guidance of openning them.
I spent a whole day to complete reading from cover to cover of the book - Trade Like Jesse Livermore. I learned something from Jesse Livermore said to be the greatest trader in the world.
Summary of the thoughts of Jesse Livermore
trend - buy only in an uptrend, short only in a down trend, which is the same as my rule in general.
one day reversal - very useful, finally I got a complete understanding of this important TA skill, though I learned from other books but did not understand fully. I used it to analyse a few stocks and found this concept very useful and important. I guess this concept can be extended to cover one week reversal and one month reversal, too.
probe buys - buy 20%, add 20%, add 20%, add final 40%.
buy new high
mandatory cut loss level - 10%, I lost big in Longcheer, China Life due to allowing loss to exceed 10%
buy at Pivotal point confirmed by heavy volume
buy at continuation pivotal point confirmed by heavy volume
buy at major pivotal point confirmed by heavy volume
buy only strongest market leaders in an industry group
never average down - I averaged down for both Longcheer and China Life despite initial paper losses
Give no tips - I'll learn to do that
Take no tips - I'll learn to do that, part of reason losing big in
Longcheer due to stubborn bullish view of DBSV
Play a lone hand - be secretive and silent in stock trading - I have to learn to do that
Never buy a stock on reactions (corrections - 7777777) and never short a stock on rallies - I buy most stocks on reactions, ie, buy at short term support during correction, which does not comply with Jesse, need to review.
Patience, patience, patience - wait for all factors in favor of you appear before committing trading capital. for me (7777777 = Toptrader), I need to wait for all the basic conditions set in my trading system to be mature before buying. but emphasize safety of trading capital as for selling, ie, sell once bearish signal appears, no need to wait for a lot of bearish sell signals to appear - that will be too late and cost me money.
Money management
story: Jesse Livermore suicided by shooting himself at last, a sad end...
Labels: Stock Trading System
