Livermore Trading Discoveries

From Chapter 3 of "Trade like Jesse Livermore"

DISCOVERY 1: TRADE ONLY THE LEADERS

DISCOVERY 2: UNDERSTAND INDUSTRY GROUP MOVEMENTS

DISCOVERY 3: TOP DOWN TRADING

• Step 1—Set Up the Checklist
• First, check the line of least resistance to establish the overall current market direction.
• Step 2: Track the Industry Group
• Step 3: Tandem Trading
• Step 4: Examine All Three Factors at the Same Time

Here are some Livermore Laws:

• Wait until the preponderance of evidence is in your favor.
• Use Top Down Trading.
• Be patient! —Jesse Livermore