No trader can or should play the market all the time. There will be many times when you should be out of the market, sitting in cash waiting patiently for the perfect trade…. ” – Jesse Livermore

“It is foolhardy to make a second trade, if your first trade shows you a loss…. As an ironclad Livermore rule, never average losses. Let that thought be written indelibly and forever upon your mind….” – Jesse Livermore

“Remember that it is dangerous to start spreading out all over the market carrying several positions. Do not have an interest in too many stocks at any one time. It is much easier to watch a few than many….” – Jesse Livermore

“As long as a stock is acting right, and the market is right, be in no hurry to take a profit…. ” – Jesse Livermore

“The doctrine for the trader was to insure himself against considerable losses by taking the first small loss….” – Jesse Livermore

“The stock market goes up approximately a third of the time, sideways a third of the time, and down a third of the time. Therefore, if a trader only trades in anticipation of a stock rising in price he is wrong on the trade two thirds of the time!” – Jesse Livermore

“Your timing should never be dictated by high prices. High prices were never a timing signal to sell a stock. Just because a stock is now selling at a high price does not mean it won’t go higher…. ” – Jesse Livermore

“I never buy a stock on declines, and I never short a stock on rallies. Let the market tell you what to do. Get your cues from what the market; do not anticipate; follow the message you received from the market…” – Jesse Livermore

“Observation, experience, memory and mathematics – these are what a successful trader must depend on.” – Jesse Livermore