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About this quote

What does it mean?
Add more capital to a position only when the asset price confirms your thesis positively. "s": "If your stock is performing well, it is safe to buy more.
What can you take from it?
Only add to positions that are already moving in your favor.

Where it applies

  • trading
  • portfolio building
  • risk management

Putting it to work

  • pyramid into wins
  • confirm before adding

Questions to consider

  • How do you confirm a trade is right?
  • When do you scale in?

Another view

Adding to winners can increase risk if the trend reverses.

More from Jesse Lauriston Livermore

  1. 'Obviously the thing to do was to be bullish in a bull market and bearish in a bear market.'

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  2. 'When I buy stocks for a rise I like to pay top prices and when I sell I must sell low or not at all.'

    Permalink to quote #9
  3. 'He really meant to tell them that the big money was not in the individual fluctuations but in the main movements that is, not in reading the tape but in sizin…

    Permalink to quote #6

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