Hi there,
Hope I'm not taking this thread off at a tangent but, thanks to this thread, I've been reading up on Jesse Livermore and I was very interested in his trade of Bethleham Steel in 1915. As far as I can understand he took a position at $98 and, once it was confirmed that it was going his way (as I'm sure he knew it should), he bought more at a higher price ($115) and then sold at $145. I day trade and, once a trade is going the right way I place a stop at the point where the trade is doing what I expect it to do. Is it a sensible thing to increase my position at this point in time?
i.e. Sell FTSE @ £2 @ 4100 on 15 min chart
15 minutes into trade FTSE is at 4070 so place a stop at 4075 and lock in profit
At same time sell FTSE @ £4 at 4070 with stop at 4072 ( or thereabouts) to allow the trade to mature fully
Any thoughts would be gratefully appreciated. TraderDante, apologies if I am taking this away from the thread but, as a newcomer to trading, I hadn't heard of Jesse Livermore before and your heads up has been inspirational for me and I'd like to know if what I am asking about above is a viable strategy?
All the best
KJ
P.S. Feel free to move this elsewhere if I am asking a stupid question!! I hope you can understand how I have arrived at it though.