Loeb Money Management Rules
# Strive for ultimategains of 1 1/2 to 2 times your capital in 6 to18 months.
# Professionals risk a maximum of 20 percent of their capital on one issue.
# It is more advantageous to invest in an advancing issue at seemlingly higher prices than to attempt to discover when the bottom will turn up for aparticular issue. To the best traders “the most expensive is actually the cheapest.”
Loeb didn’t have many sell rules when he was ahead on profitable positions, as he relied more on his experience and his judgment. One of his favorite times to sell was when started patting himself on the back for being so clever and outsmarting the market. This is almost always a huge mistake, and one you should be asware of. This overconfidence has been derimental to many a stock trader over the years. When you start bragging about how great you are, the market seems to have a magical way of bringing you back down to earth in a humbling manner.
He noticed that tops in stocks would usually occur when the advance in price stalls as volume or activity increases, or if the prices decline and the activity increases. This again comes from the focus and contant observation of the market and your holdings
– Lessons From The Greatest Stock Traders
By JOHN BOIK