How to trade in stocks

Key takeaways from the book "How to trade in stocks" by Jesse Livermore.

1. There is nothing new in the market. Whatever is happening has happened before and will happen in future also.

2. Trading is not for mentally lazy people.

3. There are times when you should speculate, there are times you shouldn’t.

4. Markets are never wrong, your opinion doesn’t matter, it should be validated by the market.

5. Profit takes care of themselves, but losses never do.

6. You must have some rules to guide you.

7. You should never let your speculative ventures run into investments.

8. No low is too low, no high is too high, no one can guess top and bottom.

9. Never average your losses.

10. You should patiently ignore normal corrections, but should always be alert for danger signals.

11. When you see a danger signal, don’t argue with it, just get out, if it turns out to be false, you can always re-enter.

12. There are only 4-5 times(big trends) a year, you should commit yourself to trading, rest of time you should wait for the correct time.

13.Don’t be too curious about the reasons behind price movements, it will clutter your mind.

14. Don’t get bullish or bearish on the whole market. Form stocks/sector specific view.

15. Take out money(your broker account to bank account) from your profits regularly.