The Tape Reader
Price is your only information and momentum is your only thesis. You size up hard when you are right and you cut fast when you are not. You are comfortable being fully wrong and fully out within a week.
Set the exit price before you enter, and never move it. The stop is the only part of this method that survives contact with reality.
Trade the tape, not the story. Never average down, always cut losses, and press only what is already working.
Reminiscences of a Stock Operator (1923, Edwin Lefèvre) — a portrait written by another author, not Livermore's own book
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