How to "sit tight" in the market

I have been reading “ Reminiscences of a Stock Operator” – reminiscences of the legendary speculator Jesse Livermore.

Among his words of wisdom, this is the line I have been repeatedly engraving in my mind:

“The big money is made by sitting, not thinking. Men who can both be right and sit tight are uncommon.” 

The first condition is my tape reading is correct. The second condition is to go along with the speculation and just sit tight until the result becomes clear. 

So far, I came to the point that I do not have second thought when deciding the time to enter the market after waiting for the real chance…thanks to Elliott wave analysis.

The real issue with me is thereafter.

Whenever the market did not accelerate and were rather sluggish, I almost certainly used to start hesitating, and went out and in the market without a good reason.

The recent winning rate of my trading record is over 60%, so if I look back now, those hesitations were nothing meaningful, and the right move was not to jump out of the market unless the loss cut order that had been set at the first place was triggered. Keeping on taking glances on the chart was a total waste of energy.

So, from now on when I make trading plans, I will also consider for how many hours I shut the chart down from my eyes after setting limit and loss-cut orders.

Keeping me from opening the chart – I guess that is the only way for me stop being hesitant, and be able to just “sit tight”.

Leave a Reply




You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Real time trading tweets

The plan in the article may get rejected any time, so please check out my tweets on Twitter.

Current risk exposure:

Rational Move always use stop loss orders, and this is the worse case potential loss over the capital for the currently open positions. This is unrealized loss is less or equal to the risk exposure.

Capital growth

From recent 100 trades (%) The growth right before the 1st trade is set to 0%.
About this graph


From recent 100 trades (%)
About this graph

Total returns

Since inception
(Aug 10, 2009)
Year-to-date Quarter-to-date
0% 0% 0%
This is a normalized value: the return on each trade is normalized against the capital just before the trade execution. This way, it is eliminating the effect by the capital change from deposits and withdrawals. The calculation thus reflects the trading performance of each trade. The value does not contain unrealized profits and losses. RM's trading strategy never risks more than 5% of the present capital. Not including subtraction by tax.

Article categories


June 2019
« Jun