Jesse Livermore and Rockefeller

Originally quoted by bali_survivor/maria on Elite Trader:

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Jesse Livermore mentioned that the first 1/8 and last 1/8 of a trend are the most expensive. Rockefeller was quoted as getting in too late and getting out too early yet making heaps....

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I have seen measurement statistics for trend trading that calculate how much of the trend you manage to capture. For example: If the start of the trend is at 1000 and the end of the trend is at 1100 and you managed to get 50 points then you got 50% of the trend. Some people say that you must get 30% of the trend and others say that you must get 80%.

I do not know if there is a right answer.

Difficult question/answer. If you use absolute points as targets and scale out then this is a moot point. Sometimes you'll get close to 100% of the move and at other times you'll get 10% of the move but you'll still be trading a relevant strategy.

I'm wondering if this is even relevant unless you are a trend trader. Personally I don't think this is very important to the success of a strategy or trader. But that's just my opinion.