Livermore’s ‘Rules’

Judging from the timestamp(s) on comments from this link and this one, for whatever reason, the ‘algorithm’ decided to just now, put these videos in the ‘in-box’.

Taken from the video at the first link, we have this:

‘Cut what’s not working’

This trading adage flies in the face of the ‘engineering’ mindset.

The engineer (generalizing) does not cut what’s not working. No, they need to know, they must know, ‘why’ it’s not working.

This type of thinking is burned in, drilled in, hammered in, during engineering school and the workplace.

If you’re design’s not working, you better know ‘why’. 🙂

That makes the typical engineer unable to handle the fact, no matter how much analysis was done, how much research, the trade’s not working.

Wyckoff said it best nearly a century ago, ‘The why always comes out later, after the fact‘.

The Media & ‘Why’

Of course, the media wants ‘investors’ to search for the ‘why’. They encourage the ‘why’, they have experts come on and discuss the ‘why’ … the ‘why’ is endless.

The result: Focus is shifted away from the truth (price action itself) to other non-productive questions.

Stay Tuned

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