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To: Jibacoa who wrote (2416)	10/15/2008 3:06:54 PM
From: Jibacoa	Respond to of 3722

O.T. In times like these, it's good to remember some of the "Stock Market Maxims" ounce in a while. :>) Most of these are from Jesse Livermore in the book "Reminiscences of a Stock Speculator" 1. WARREN BUFFET'S RULE #1: DON'T LOOSE ANY MONEY 2. HIS RULE #2: DON'T FORGET RULE #1 3. TO BUY ON A RISING MARKET IS THE MOST COMFORTABLE WAY OF BUYING STOCKS. 4. Nobody can give me a tip or a series of tips that can make more money for me than my own judgement. 5. Stocks are never too high for you to begin buying or too low to begin selling.But after the initial transaction, don't make a second one unless the first one shows you a profit. DON'T AVERAGE DOWN. 6.A loss never bothers me after I take it. I usually forget overnight. But being wrong---not taking the loss---that is what does the damage to the pocket book and to the soul. 7. Of all speculative blunders there are few greater than trying to average a loosing game. Always sell what shows you a loss and keep what shows you a profit. 8. If all I have is ten dollars and I risk it, I am much braver than when I risk a million and have another million salted-away. ( But it is usually not wise to risk more than 2% of your trading capital in any transaction.) 9. The desire for constant action irrespective of underlying conditions is responsible for many losses. 10. There is only one side to the stock market, and it is not the bull side or the bear side, but THE RIGHT SIDE. 11. It doesn't pay a man to be wrong. 12. It isn't good to advance until you are sure that you won't have to retreat. 13. If a stock doesn't act right, don't touch it.No diagnosis, no prognosis.No prognosis, no profit. 14. The semi-sucker is the type that thinks he has cut his wisdom teeth because he loves to buy on declines. 15. One of the most helpful things that any body can learn is to give up trying to catch the first eight --- or the last ---. Those are the most expensive eights in the world. 16. In a trending market is better to sit aside and wait until the line of less resistance defines itself. 17. It is always better to think of basic conditions instead of individual stocks. 18. In a bull market your game is to buy and hold until you believe that the bull market is near an end. Remember is the BIG SWING that makes the BIG MONEY for you. 19. Without faith in his own judgement no man can go very far in this game. 20. It is usually not good to buy stocks too cheap or too easily. To buy on a rising market is the most comfortable way of buying. Buy on a rising scale, not on a scale down. 21. THE NEED ABOVE ALL OTHER THINGS IS TO DETERMINE THE KIND OF MARKET A MAN IS TRADING IN 22. It sounds simple, but: Obviously the thing to do is to be bullish in a bull market and bearish in a bear market. 23. If you begin right you will not see your profitable position seriously menaced and then you will find no trouble in sitting tight. 24. It never was my thinking that made the BIG MONEY for me. It was always my sitting . Got that? My SITTING TIGHT. 25.Even when one is properly bearish at the very beginning of a bear market it is well not to begin selling in bulk until there is no danger of the engine back-firing. 26. If a man didn't make mistakes he'd own the world in a month. But if he didn't profit by his mistakes he wouldn't own a blessed thing. 27. The only thing to do when a man is wrong is to be right by ceasing to be wrong. 28. When you want to get out, get out. Do not trade at limits. 29. Nobody should be puzzled as to whether a market is a bull market or a bear market after it fairly starts. It is therefore at the very inception of the movement that a man needs to know whether to buy or sell. 30. Millions upon millions of dollars have been lost by men who bought stocks because they looked cheap or sold them because they looked dear. 31. The thing to determine is the speculative line of least resistance at the moment of trading and a man should wait for the moment when that line defines itself, because that is the signal to get busy. 32. Stocks are never too high to buy or too low to sell. The price per se, has nothing to do with establishing the line of least resistance. 33.It is never wise to disregard the message of the tape. Don't try to swim against the current. 34. In a narrow market there is no sense in anticipating what the next big move is gong to be. The thing to do is to wait until the price breaks through the resistance in either direction. IT DOESN'T PAY TO START WRONG IN ANYTHING. 35 Instead of hope you must have fear; instead of fear you must have hope Always fear that your loss may develop into a much larger loss and hope that your profits may become a big profit. 36.A market can and does often cease to be a bull market long before prices generally begin to break. Usually stocks that had been the leaders retrace some points from the top and for the first time in many months do not come back, while the rest of the market is still advancing under new standard bearers. 37. Never try to sell at the top. Sell after a reaction if there is no rally. 38.In a bear market it is always wise to cover if complete demoralization suddenly develops. 39. There are certain chances that the must prudent man is justified to take.---chances that he must take if he wishes to be more than a mercantile mollusk. 40. A man may know what to do and lose money --- if he doesn't do it quickly enough. 41. Stocks are manipulated to the highest point possible and then sold to the public on the way down.It is astonishing how much stock a man can get rid of on the way down. 42. Always remember that in this game, the deadly enemies are: IGNORANCE, GREED, FEAR and HOPE. Bernard .