When the sale could not move the market down, he would aggressively buy the stock, earning profits. I am impressed by this methodology is that Livermore considered non-recurring losses as part of of a larger plan. He did not just lose the money he paid for the information. If my maximum position size is 10 lots, and I make a purchase in one lot at the top of the range, waiting for a breakthrough, I merely 'Check the water'. I potentially can not move the market like Livermore, but I'm starting to test my hypothesis breakthrough upper range. I can then monitor closely how other similar market-based instruments behave at the upper limit of its range? As the market absorbs the dealer? Like any researcher, I collect data to determine whether my hypothesis is confirmed. Assume that the breakout is not occurs and the initial motion above the range back into the range of some increase in selling pressure.

I accept the loss on me a lot, but what happens next? The unsuccessful trader is likely to upset 'Why do I always get to purchase a maximum? I can not believe that 'they' move the market especially against me! In this market can not be traded. " Because of his illness and the related focus on itself, an unsuccessful trader can gain any information from this transaction. However, a successful trader, acting by Livermore, accept the loss on one lot as part of a larger plan. If the market did break up, it will increase the long position and will likely make money.