Sell Discipline Rules
"Have clear, pre-defined sell criteria. Sell when: your thesis is broken, valuation is fully realized, or a significantly better opportunity appears."
Follow pre-defined sell criteria without emotion.
Read Full Analysis →Jesse Lauriston Livermore (July 26, 1877 – November 28, 1940) was an American stock trader considered one of the greatest traders in history. He made and lost several fortunes during his career, including famous profits during the 1907 and 1929 market crashes. Livermore began trading at age 14 in Boston bucket shops and developed his own methods for reading market...
"Have clear, pre-defined sell criteria. Sell when: your thesis is broken, valuation is fully realized, or a significantly better opportunity appears."
Follow pre-defined sell criteria without emotion.
Read Full Analysis →"Regularly review whether your original reasons for owning a stock still hold. If the facts change, change your mind. Holding a broken thesis is the costliest mistake."
Regularly challenge your original investment thesis.
Read Full Analysis →"After every sell, review the outcome. Did you sell too early, too late, or at the right time? Post-mortems on sell decisions improve future judgment."
Post-mortem every sell decision to improve.
Read Full Analysis →Jesse Livermore has 3 key principles on selling & review. The most important one is "Sell Discipline Rules" — Have clear, pre-defined sell criteria.
Jesse Livermore applies selling & review through several key principles including "Sell Discipline Rules" and "Review Your Investment Thesis". These principles guide practical investment decisions and have been tested across decades of market cycles.
Jesse Livermore's approach to selling & review is distinguished by a focus on long-term thinking and fundamental analysis. With 3 specific principles in this area, Jesse Livermore provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.