1. A rule of thumb for how traders should control losses so that they never lose more in a morning than they can make in an afternoon, more in a day than they can make in a week and more in a week than they can make in a month;
I think this is a major reason why I read it in Jesse Livermore's books, where it emphasizes that losses must stop and profits must be lengthened, most operators do the opposite, losses lengthen them and losses cut them, This is very bad, but it is what most of them tend to teach, they hope to raise a loss and not to cut it off so that the loss does not continue to generate more havoc.
I think that in some way everything must be focused in the right way, it is a hard paradigm to break.