Livermore’s 5 money management rules.

1) Don’t lose money.
* A speculator without cast is like a store-owner with no inventory.
2) Always establish a stop.
* Take your losses quickly. Easy to say, but hard to do.
3) Keep cash in reserve.
* You do not have to be in the market all the time.
* The desire to always be in the game is one of the speculator’s greatest hazards.
* Time is not money – time is time and money is money
* Patience is the key to success, not speed.
4) Let the position ride.
* As long as the stock is behaving normally, do not be in a hurry to take a profit.
* Stick with the winners. Let them ride until you have a clear reason to sell.
5) Take the profits in cash.
* Parking 50% of the profits from a successful trade, especially when the trade doubled the original capital.

Quelle: http://www.leavittbrothers.com/chartspeak/ChartSpeak_082904.pdf