Jesse Livermores trading principles remain useful reminders for investors.
- The trend is your friend: the big money is not in individual fluctuations but in the main movements.
- 2. Cut losses quickly and let winners run.
- 3. Do not average down simply because a position is lower.
- 4. Wait for the market to confirm your thesis.
- 5. Size positions so a wrong idea does not damage the portfolio.
Discipline, patience, and the willingness to admit when you are wrong matter more than constant activity.