Livermore says you should resist the temptation to be in
the market all the time. Again, patience is a virtue and waiting
for the right opportunity is better than being foolishly invested.
There are times when you should be 100% in cash.
Park 50% of your
profits from a successful trade, especially where you doubled your
original capital. Put it in the bank, hold it in reserve.” This, in
fact, is the rule Livermore regretted not paying enough attention
to. He went broke a number of times from not following his rules. Good time for Uncle8888 to remind himself again!
Compounding investment gains year on yearis what many retail investors like to think. Up, up, up and away! No. We must pay more attention to Jesse Livermore's Golden Money Management Rules which he himself regretted not paying enough attention to them.
The Truth is Mr. Market can give; but can also easily take it back without giving us any advance notice. By the time, we realize it it is often too little late!
I am 61 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and retired @ 60 from full-time job as employee.
Single household income since 1995 with three children. Eldest son and daughter are now working and youngest son still in his 2nd year uni in SUTD.
I have been doing long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that Panda or Koala in the investment world; but I am still surviving well in the wild.
I am now executing my Three Taps solution model to maintain sustainable retirement income for life till 2038.
Last updated: 3 Sep 2017
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