How to Trade In Stocks

These sources examine the disciplined art of trend-following and market speculation, emphasizing that success requires a systematic, business-like approach rather than gambling. Jesse Livermore outlines a rigorous methodology centered on pivotal points and the time element, arguing that traders must maintain their own records to develop the necessary intuition for market movements. He stresses the vital importance of emotional control, advising participants to limit losses early while allowing profitable trends to run their course. Complementing this, Michael Covel discusses the modern application of these strategies, noting that systematic rules offer a distinct advantage over unpredictable fundamental analysis. Both authors agree that a trader’s longevity depends on capital preservation, such as withdrawing profits and avoiding the "hope" that leads to ruinous losses. Ultimately, these texts portray successful trading as a teachable skill fueled by personal effort, patience, and the strict adherence to a tested formula.