Make sure whether our trading is short-term random trading (gambling) or trend trading (commercial speculation)

Livermore eventually became a trend trader from an intraday trader. The trend of stock price appears because the real gap between supply and demand drives the company's fundamentals, which is a scarce feature. The opportunities of trend trading are very limited. If you trade frequently, you will lose the benefits of trend trading. Trend traders need to conduct a large number of commercial speculation surveys and keep a moderate distance from the market to filter the noise. In the rising trend of the market, it’s difficult for many people to make profits, mainly because they do not do a good job before trading, and have no confidence in the investment target. In this way, short-term fluctuations in the subject matter will trigger a collapse of their confidence and make them sell to wait. In the downward trend market, most people are trapped by the false confidence and dangerous inducement of the rebound. Stock price fluctuation often presents letter N structure, which is a big killer for most people to lose money in the market.

Once entering the market means entering the battlefield. You can never be proud. You must be modest, because you only have one life on the battlefield. A complete failure in the market requires very difficult accumulation and confidence remodeling. We see Livermore finally suffered in such cycles again and again. We hope that everyone can learn a profound lesson, which is why we want to share the original story with investors.

When we enter the market and start to make small profits, we are often carried away by victory. Pride is our biggest trap. Once entering the market means entering the battlefield, a little slack or pride will make you fall into the desperate situation. There will be no second life in the battlefield. If you don't leave a way of retreat for yourself in the financial market, it will be the same result. So you need to abide by the guidelines of your own trading system strictly.