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There is enough to go around for all,never forget that.I am proud of you!!!
merci Serf , thats exactly me already started with 2 young guys wich are very honest .. they trade in the room with P and i .. they already making better than me lmao
You know something J,you are a very fortunate young man to be involved in the greatest business ever created by man.Take your time learn,absorb the experience from ihubs finest,and when you get to be my age MAKE SURE to return the favor to that 20 something future dreamer that wants to trade.Give him/her your time and knowledge,be generous and not greedy and convey to him the message to do the same when he reaches a certain age..
That book is considered the bible,i read it once every 3 months and always find something new and usefull..
im reading reminiscences as of now .. started today d'led the ebook .. great stuff so far not boring at all
Livermore Studied His Own Mistakes
Jesse Livermore studied his mistakes objectively…”the only way you get a real education in the mark is to invest cash, track your trade, and study your mistakes! It is emotionally difficult to review your mistakes, since the speculator must wade through his own bad trades and blunders”…
Commentary on the previous posts final paragraph on Livermores suicide.
Human beings are flawed by nature,perfection and balance do not exist,no matter what the gurus tell you.We are all damaged by our parents,society,demons etc............
One can aspire to achieve balance,but how many really do!!!
Enjoy life folks,every single second,because you come into this life alone and you depart alone...
Live and let live!!!!!!!
Jesse Livermore: Nuggets of Wisdom from the Greatest Trader Ever
Author: Jim Wyckoff
Date: Unknown
Complexity: Easy
In the early part of the 20th century, Jesse Livermore was the most successful (and most feared) stock trader on Wall Street. He called the stock market crash of 1907 and once made $3 million in a single day. In 1929, Livermore went short several stocks and made $100 million. He was blamed for the stock market crash that year, and solidified his nickname, "The Boy Plunger." Livermore was also a successful commodities trader.
I think the most valuable knowledge one can gain regarding trading and markets comes from studying market history, and studying the methods of successful traders of the past. Jesse Livermore and Richard Wyckoff are two of the most famous and successful traders of the first half of the 20th century. Many of the most successful traders of today have patterned their trading styles after those of the great traders of the past.
Here are some valuable nuggets I have gleaned from the book, "How to Trade Stocks," by Jesse Livermore, with added material from Richard Smitten. It's published by Traders Press and is available at Amazon.com. Most of the nuggets below are direct quotes from Livermore , himself.
. "All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical (technical) formations and patterns recur on a constant basis."
. "The game of speculation is the most uniformly fascinating game in the world. But it is not a game for the stupid, the mentally lazy, the person of inferior emotional balance, or the get-rich-quick adventurer. They will die poor."
. Don't take action with a trade until the market, itself, confirms your opinion. Being a little late in a trade is insurance that your opinion is correct. In other words, don't be an impatient trader.
. Livermore 's money made in speculation came from "commitments in a stock or commodity showing a profit right from the start." Don't hang on to a losing position for very long.
. "It is foolhardy to make a second trade, if your first trade shows you a loss. Never average losses. Let this thought be written indelibly upon your mind."
. "Remember this: When you are doing nothing, those speculators who feel they must trade day in and day out, are laying the foundation for your next venture. You will reap benefits from their mistakes."
. "When a margin call reaches you, close your account. Never meet a margin call. You are on the wrong side of a market. Why send good money after bad? Keep that good money for another day."
. Livermore coined what he called "Pivotal Points" in a market or a stock. Basically, they were: (1) Price levels at which the stock or market reversed course previously--in other words, previous major tops or bottoms; and (2) psychological price levels such as 50 or 100, 200, etc. He would buy a stock or commodity that saw a price breakout above the Pivotal Point, and sell a stock or commodity that saw a price breakout below a Pivotal Point.
. "Successful traders always follow the line of least resistance. Follow the trend. The trend is your friend."
. A prudent speculator never argues with the tape. Markets are never wrong-- opinions often are.
. Few people succeed in the market because they have no patience. They have a strong desire to get rich quickly.
. "I absolutely believe that price movement patterns are being repeated. They are recurring patterns that appear over and over, with slight variations. This is because markets are driven by humans -- and human nature never changes."
. When you make a trade, "you should have a clear target where to sell if the market moves against you. And you must obey your rules! Never sustain a loss of more than 10% of your capital. Losses are twice as expensive to make up. I always established a stop before making a trade."
. "I am fully aware that of the millions of people who speculate in the markets, few people spend full time involved in the art of speculation. Yet, as far as I'm concerned it is a full-time job -- perhaps even more than a job. Perhaps it is a vocation, where many are called but few are singled out for success."
. "The big money is made by the sittin' and the waitin' -- not the thinking. Wait until all the factors are in your favor before making the trade."
An important point I want to make is that Jesse Livermore's trading success came not because of any "inside" information or some huge store of knowledge he had about each and every stock or commodities market he traded. Livermore 's trading success was derived from his understanding of human behavior. He realized early on that markets and stocks can and do change -- but people and their behaviors do not. Therein lay his formula for trading success. That formula for trading success has not changed since Livermore 's hey day in the stock and commodities markets almost a century ago.
A final note: Jesse Livermore may have been called the greatest stock market trader of the 20th century, but I question that notion. Certainly, no one can disagree that his profits were immense and his trading prowess was unmatched.
But his life was not in balance. He was a "workaholic" who paid too little attention to his family. Livermore put a gun to his head and pulled the trigger in 1940. He "crashed and burned." You must have balance in your life to achieve lasting success at any endeavor.
Trading markets is no exception.
By Jim Wyckoff
www.jimwycokff.com
wow sorry did not know you were struck by that
i know youll make it back ..
I still haven't recovered from the flash crash J.I took a 45
% haircut,and have been fighting the fear demons ever since.All part of this business.What doesn't kill us,makes us stronger..
i need to control some emotions on a cold streak like im having ..
Doesn't exist J.You are fighting yourself as a trader and not the markets.Markets are simple,human emotions are an enigma lol..
i was looking for one with a magic touch lol
Lol,i have given many away through the years:)
Ebay is good on prices for most books...
prete moi tes livres
livermore
Wisdom of Jesse Livermore 2
Adam Hamilton February 28, 2003 3149 Words
Legendary speculator Jesse Livermore is surely one of the most fascinating characters in all of financial-market history.
About a century ago Jesse Livermore blossomed into one of the most celebrated speculators of all time. He was trading heavily in the early decades of the 1900s, a wondrous era to speculate in stocks. His renowned exploits are still viewed with great awe and reverence by today’s elite speculators and his towering speculation wisdom will stand tall for ages to come.
If you are interested in more background information on Jesse Livermore and my reasons behind writing this series of essays on the man’s awesome speculation wisdom, you may wish to skim the introduction of the first essay in this series.
Livermore’s exploits were recorded in the greatest book on speculation of all time. Originally published in 1923, it is called “Reminiscences of a Stock Operator” and was written by a gifted financial journalist named Edwin Lefevre. Lefevre penned the account as if from the first-person perspective of a fictional trader named Larry Livingston. As Lefevre had spent weeks extensively interviewing Jesse Livermore, market historians are virtually unanimous in viewing Lefevre’s classic book as a thinly-disguised biography of Livermore’s trading life.
Today “Reminiscences of a Stock Operator” is fondly read with awe by speculators of all levels and abilities all around the globe. I have personally read the book many times and I try to re-read it at least once a year now. The speculation wisdom contained within these magical pages is just awesome and truly priceless for all speculators to digest.
If you are interested in speculation and you haven’t read the book you owe it to yourself to buy it today at Amazon or Barnes & Noble. I can almost guarantee it will forever change you as a speculator and help you soar to new heights of understanding of the game and achieving real-world success.
Jesse Livermore’s words and experiences are so endearing and powerful because he presents himself as just another mere mortal like you and I, with hopes, fears, and frailties. He is brutally honest in critiquing his own evolution as a speculator and thoroughly explaining his own mistakes and the great wisdom they ultimately led to.
In this series of essays Jesse Livermore’s wisdom is presented chronologically from the book. All the bold-faced passages below are his words directly out of Lefevre’s book, while the following normal text is my own feeble thoughts and commentary attempting to pull Livermore’s wisdom a century into the future to today. Before every quote below, the chapter in “Reminiscences” from which it is pulled is noted so you can quickly find it and dig deeper by reading the valuable surrounding background context if you wish.
I hope and pray that you find Jesse Livermore’s awesome wisdom as exciting and valuable as I have!
(Chapter II) … “The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street even among the professionals, who feel that they must take home some money every day, as though they were working for regular wages.”
This classic Jesse Livermore quote picks up just where we left off in the first essay, on the perpetually popular game of day trading. Livermore was not fond of day trading and he touches on the great dangers of it many times in his discourses. He advocated a much more patient strategic speculation approach. This broader perspective and slower pace of trading helped him to ultimately harvest far higher profits and avoid the immense stress and pitfalls of ultra-short-term speculation.
Livermore believed that a speculator should diligently study the markets and then patiently stalk any potential trades. He felt that speculators had a much greater probability of succeeding if they intelligently defined a potential entry point in advance through careful research and then patiently waited for it to actually come to pass in the real-world markets. This led to staking intelligent positions and eliminated the possibility of the dangerous unthinking “impulse trading” so common in day trading.
Once his carefully-planned positions were deployed, Livermore advocated the strategic side of short-term speculation, holding carefully targeted positions through an entire bullish or bearish swing of the markets. Sometimes these swings lasted weeks, usually they lasted months, and occasionally they lasted more than a year. Over and over Jesse Livermore emphasizes that these strategic-oriented position trades had both the highest probability of success and the highest potential profits as rewards for being right.
Today’s speculators can learn a great lesson from the Livermore quote above. The really big wins in trading don’t come out of daily scalping, but out of diligently riding entire major bullish and bearish market swings. Jesse Livermore wisely points out that those who “desire for constant action” and trade regardless of underlying big-swing market conditions face “many losses”.
Speculation is like a grand real-world game of chess, a thinking-man’s strategy game sprawling out into the unknown future across weeks and months. If you want to have a shot at growing into an elite speculator, you are best off ignoring the small gains and losses of day trading and holding out for the really big wins possible by riding entire bull or bear swings. Speculators are not “working for regular wages” and don’t need small daily wins, all we really need are the enormous Big Trade wins that usually appear several times a year or so.
(Chapter II) … “A stock operator has to fight a lot of expensive enemies within himself.”
It is not the financial markets, nor government intervention in the markets, nor even the other competing traders that are the greatest enemy of any speculator, it is the greed and fear dwelling deep within his own human heart. To become an elite speculator, one must carefully learn over decades of real-world trading how to turn off one’s own dangerous emotions of greed and fear like a switch. The goal is to be totally emotionally neutral, never growing too scared nor stumbling into the deadly trap of greed.
A greedy speculator is doomed before he even starts because he will buy in at the wrong time and will inevitably fail to sell high when everyone else is confirming his greed and bidding up prices. A fearful speculator will fare no better, as he will be too scared to buy in at the right time when everyone else is also frightened and he will sell out too soon as his fear multiplies, missing most of the market move.
Jesse Livermore learned through long, hard experience that his own internal greed and fear were his greatest enemies as a speculator. Once he learned how to tame his own dangerous emotions when he traded, both his success and fortunes soared.
(Chapter II) … “I don’t know whether I make myself plain, but I never lose my temper over the stock market. I never argue with the tape. Getting sore at the market doesn’t get you anywhere.”
Part of the journey every speculator must travel in taming his own emotions is to refuse to get angry at the markets or at speculation itself. Losses will happen and they are simply part of the game, nothing to grow upset about. If a speculator allows himself to grow angry over a loss, he is just shooting himself in the foot. Anger clouds the mind and leads to poor decision making.
Rather than getting angry at your own trading losses, I think it is useful to consider them as “speculation tuition” and diligently strive to learn whatever you can from them. If you can avoid anger and accept your trading losses as valuable lessons, odds are your wisdom and success as a speculator will continue to grow. Losses are the ultimate speculation teachers as they are painful and memorable and lead to crucial wisdom on how to avoid making this same particular mistake again in the future.
Anger (and worry) is a complete waste of time and as Jesse Livermore wisely pointed out, “Getting sore at the market doesn’t get you anywhere.” After a losing trade you have to swallow your pride, accept your loss, learn your lesson, and move on to more successful trades in the future.
(Chapter II) … “We ran into a crazy bull market when stocks didn’t react enough to wipe out even the one-point margins, and, of course, all the customers were bulls and winning and pyramiding.”
Everyone wins in a bull market. This ancient financial truism is incredibly important and must not be forgotten by speculators. It doesn’t matter so much what individual positions you take, but whether or not the underlying market conditions are highly favorable for your particular open trades. This also relates back to Jesse Livermore’s idea of playing the major market bull and bear swings, of riding the predominant market trends at any given time.
A corollary to this piece of wisdom is that trading in a bull market is generally easier than in a bear market. Since a powerful bull will lift virtually everything in its path, precise picking of trades is not as important as merely having your capital deployed in line with the current market trend. If a glorious bull is galloping, as in the gold market today, simply pick some trades with long exposure. Odds are you will reap handsome rewards even if you haven’t picked the best possible trades for the bull run.
Conversely if a wicked bear is prowling, as in general stocks today, pick some trades with short exposure. The reason everyone doesn’t win in a bear market is that the vast majority of market participants are unable to overcome their own irrational internal bias against shorting. Speculators must learn to simply not care which way the markets are heading, up or down, but merely to know in advance what probabilities suggest and deploy long or short with the primary trend accordingly.
(Chapter III) … “It takes a man a long time to learn all the lessons of all his mistakes. They say there are two sides to everything. But there is only one side to the stock market; and it is not the bull side or the bear side, but the right side. It took me longer to get that general principle fixed firmly in my mind than it did most of the more technical phases of the game of stock speculation.”
Behold one of Jesse Livermore’s greatest classic quotes! Being a bull or a bear alone is meaningless out of the crucial context of the current market conditions. All that really matters for the great game of speculation is being on the “right side”, knowing when the markets are in a bull or a bear trend and deploying your speculative capital accordingly.
Once again Livermore ties speculation back into the speculator’s own internal emotions. He points out that it makes no sense to be bullish or bearish as a rule, but to carefully watch the market conditions in order to be on “the right side” at any given moment. Most speculators are burdened with an innate emotional bias to be bullish that is dangerous and must be eradicated if they wish to succeed in speculation.
A speculator must not foolishly try to bend the markets to his will, but instead prudently bend his will to the markets! If a bull trend is evident, be long. If a bear trend dominates, be short. An elite speculator doesn’t care at all which way the markets are moving, he just wants to be “right” and recognize the trend early enough to prudently deploy his own capital and be blessed to harvest profitable trades.
Forget the endless bull and bear arguments and don’t let any other speculators try to pigeonhole you into one of the two warring camps. Instead of being a perma-bull or perma-bear, instead strive to listen to the rhythm of the markets and simply be “right” about what is coming to pass next and trade accordingly.
(Chapter III) … “With me I must back my opinions with my money. My losses have taught me that I must not begin to advance until I am sure I shall not have to retreat. But if I cannot advance I do not move at all. I do not mean by this that a man should not limit his losses when he is wrong. He should. But that should not breed indecision. All my life I have made mistakes, but in losing money I have gained experience and accumulated a lot of valuable don’ts. I have been flat broke several times, but my loss has never been a total loss. Otherwise, I wouldn’t be here now. I always knew I would have another chance and that I would not make the same mistake a second time. I believed in myself. A man must believe in himself and his judgment if he expects to make a living at this game.”
This awesome Jesse Livermore paragraph is striking as it really distills the whole essence of successful speculation. First Livermore cuts to the core of speculation, backing “my opinions with my money.” Everyone has opinions about which way the markets are heading, but the speculator has a much higher stake in being right because his own precious capital is on the line based on his opinions of future market direction. Talk is cheap if not backed by real capital!
The best time to trade based on these opinions is when a speculator is virtually convinced that a trade has a very high probability of success, what we call the “Big Trades” in our acclaimed Zeal Intelligence newsletter. A speculator must patiently wait until conditions are nearly perfect to trade large, and then he must aggressively deploy his capital and ride out the trade until the end. If conditions for trading are ideal when a position is opened, odds are a retreat out of the position won’t be necessary. Livermore says that one should not even trade, “do not move at all”, if conditions are not ideal.
After Livermore acknowledges that waiting for those rare optimal trading situations is essential, he wades into the hidden value of making mistakes. Losses are just part of the game as discussed above, and they should not lead to anger but instead to immensely valuable lessons that help a speculator grow wiser and more successful in the future. Jesse Livermore pointed out that the benefits of a learned lesson later in his speculation career vastly outweighed the capital losses he suffered to learn his lesson originally.
Finally, while in his prime Livermore never allowed his losses or tough times to sap his spirit. He learned from his mistakes and even if he had lost all his capital knew that he would be back to trade again. A speculator must first be comfortable with himself and learn to trust his own judgment when assessing market conditions and stalking and deploying trades. Confidence and conviction are essential attributes for all speculators to carefully cultivate.
(Chapter III) … “It took me five years to learn to play the game intelligently enough to make big money when I was right.”
Unfortunately many new speculators grow discouraged after their first losses. The evolution of a speculator is not an easy process and takes a great deal of time and effort. Jesse Livermore claimed it took him five years before he arrived at the point where he could play the game well and harvest large profits. In my own speculation history I have experienced the same thing, that at least several years of “training” via actual real-world trading is necessary to build up one’s core speculation skills sufficiently to start winning big.
New speculators today need to realize that it will take them 3 to 5 years to start getting competent at speculation. If you are a new speculator with less experience than that and you are discouraged after some recent losses, have no fear and keep learning and playing the game. Every speculator must pay his dues before he starts winning consistently and it truly does take years to educate yourself as a speculator.
(Chapter III) … “Speculation is a hard and trying business, and a speculator must be on the job all the time or he’ll soon have no job to be on.”
It always strikes me as funny that non-speculators see trading as an easy way to make a living. They couldn’t be farther from the truth! Speculation is immensely challenging and the markets will find and exploit every conceivable chink in your emotional armor. All your personal weaknesses will conspire to mercilessly work against you in concert to thwart your evolution as a speculator.
If you want to embark upon the journey of growing into an elite speculator, have no illusions that your path ahead will be easy. It will be a huge challenge for you just as it was a huge challenge for Jesse Livermore and is a huge challenge for me on my own speculation journey.
Livermore also points out that casual speculators are not often successful. If you want to speculate, do your homework and do it right, even if it is not your primary job. Speculating as a hobby is fine, but even hobby speculators must learn the same lessons and approach the game with the same diligence, seriousness, and zeal as full-time professional speculators. The markets take no prisoners.
(Chapter III) … “The game taught me the game. And it didn’t spare the rod while teaching.”
Not surprisingly the best way to learn the art of speculation is not to read a book about it, but to actually speculate yourself. Regardless of how little capital a new speculator starts out with, he must actually bet some of it in the real-world markets to learn and grow as a trader. Just as one has to play football in order to become a good football player, one has to actually speculate in the real markets with real capital in order to become a good speculator. There is no other way.
And Jesse Livermore wisely points out that real-world trading is the school of hard knocks, that “it didn’t spare the rod while teaching” him. Nevertheless, a speculator should embrace his losses and the tough lessons they taught him so he can continue to grow in knowledge and wisdom and become a superior speculator in the future.
Well, unfortunately this is all of Jesse Livermore’s wisdom that fits into this second essay of my series on “Reminiscences”. I hope you found Livermore’s great wisdom enlightening!
Go buy and read “Reminiscences of a Stock Operator” today! I can almost guarantee it will forever change your life as a speculator! Jesse Livermore’s quotes are even more impressive in proper context and are delightful to read and digest. This essay format can’t even start to do them justice.
Until next time, Godspeed and happy speculating!
Adam Hamilton, CPA February 28, 2003 Subscribe
Talking to all of us,if we choose to listen lol.....
Great stuff .. Seems like a lot of quotes are talkng to me ..
Bonne nuit
orederd it no expensive at all .. thx darby :)
http://www.amazon.com/Reminiscences-Stock-Operator-Edwin-Lefevre/dp/0471059706
Truly this is all you need. It actually is entertaining, not boring at all, and one benefits from re-reading numerous times.
just discovered it stalking him a bit .. gonna read all posts and find the books
NO WAY - This is a great board, glad it is here! I learned the most about so many parts of this business from the wisdoms of Livermore.
thx darbs .. thought u were messing with my boy serf
That is one of his best wisdoms on the market and participation in them. Read here: http://www.jesse-livermore.com/trading-lessons-suckers.html
The public ought always to keep in mind the elementals of stock trading. When a stock is going up no elaborate explanation is needed as to why it is going up. It takes continuous buying to make a stock keep going up. As long as it does so, with only small and natural reactions from time to time, it is a pretty safe proposition to trail with it.
The pleasure is all mine.Knowledge is power.....He did it over 100 years ago,he paved the way for us all.Imagine what our potential is if we can learn from his mistakes..
Reading your post is like going to church or reading the bible. It always seems to tell me something that I need to hear at the time. Sitting on my hands and not trading is one of the hardest things I've encountered in my trading career. I would be so much better off a lot of times if I did. Thanks for posting the quotes Serf. I enjoy them a great deal.
"One of the most helpful things that anybody can learn is to give up trying to catch the last eighth - or the first. These two are the most expensive eighths in the world. They have cost stock traders, in the aggregate, enough millions of dollars to build a concrete highway across the continent.
"The reason is that a man may see straight and clearly and yet become impatient or doubtful when the market takes its time about doing as he figured it must do. That is why so many men in Wall Street, who are not at all in the sucker class, not even in the third grade, nevertheless lose money. The market does not beat them. They beat themselves, because though they have brains they cannot sit tight."
… "And right here let me say one thing: After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I've known many men who were right at exactly the right time, and began buying and selling stocks when prices were at the very level which should show the greatest profit. And their experience invariably matched mine - that is, they made no real money out of it. Men who can both be right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make big money. It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance."
On Stock Tips
"I know from experience that nobody can give me a tip or series of tips that will make money for me than my own judgement."
On Confidence
"A man must believe in himself and his judgement if he expects to make a living at this game."
On Attitude
"People who look for easy money invariable pay for the privilege of proving conclusively that it cannot be found on this earth."
On Odds
"But I can tell you after the market began to go my way I felt for the first time in my life that I had allies - the strongest and truest in the world; underlying conditions."
On Charting Basics
"If a stock doesn't act right don't touch it; because, being unable to tell precisely what is wrong, you cannot tell which way it is going. No diagnosis, no prognosis. No prognosis, no profit."
On Basic Principles
"My plan of trading was sound enough and won oftener that it lost. If I had stuck to it I'd have been right perhaps as often as seven out of ten times."
A loss never bothers me after I take it. I forget it overnight. But being wrong - not taking the loss - that is what does damage to the pocketbook and to the soul.
Jesse Livermore
It isn't as important to buy as cheap as possible as it is to buy at the right time.
Jesse Livermore
There is only one side of the market and it is not the bull side or the bear side, but the right side.
Jesse Livermore
Livermore on margin calls;never meet one,get out and move on..Oh if it were that simple Jesse,lol.....
Livermore had a very strong view on tips;stay away from them at all costs,lol ihub would make him chuckle with all the pink sheet future microsofts lol.......
Livermore held the view that we are always in a bear market,hence shorting was where he made the majority of his trades..
Livermore often said that if one risks 1000 dollars out of his 10,000 stake,that in his mind it was not a risk,where as if one risked 100 dollars out of his 100 dollar stake,that defined risk to him.
Also known as "the boy plunger" who was going all in before the great Doyle Brunson lol..
Livermore was at ease with numbers.It was another language to him,but he understood it quite well.At the end of the trading day he would challenge his office manager Harry to see who would tally up the days results faster,of course Livermore always won lol..
Livermore was not a daytrader.When he identified the trend,he would send out probes to test the market(small positions),once confirmed he would add at higher prices until he got his desired stake.He stuck to the position until he saw evidence that the trend was about to reverse.Remember that he loaded up his million share short one year prior to the crash of 29.Talk about patience!!
Livermore was constantly learning the game.Always analyzing and perfecting his approach.He knew the market was bigger than any one man and that no one could beat the market all the time..
Of course this was before GS and their god damned HFT machines,that win 99.9% of the time lol...
Livermore never gave opinions on the markets direction.Having been plagued by curious freeloaders looking for the next sure thing most of his life.
Once Livermore took a position,he watched it like a hawk for signs that he was wrong.This was a crucial factor to his success,since when proven wrong he never hesitated to get out of a position.When proven right,he averaged UP,as each buy was placed at a higher price his view was being proven by the market.Livermore never averaged down!!!!!!!!!
Livermore was known to dabble in commodities as well,but stocks were his bread and butter.He also dabbled in real estate and other ventures but lost his shirt every time,which prompted him to say that you can only specialize in one field instead of ten.Every time he went against his rules he lost big.Later on in his life he often reminisced that had he been more vigilant and disciplined in sticking to his rules,well the rest would follow..
Livermore told his sons to keep their money in the right hand pocket,since pickpockets went after the left pocket."boys he said,keep your money close to your balls,and hold on to it at all times"
Great info on the sticky post folks.Thanks to NYBob..
One often wonders what happened to that 100 million dollar fortune he made in 29.I for one find it hard to believe that he lost it in the market again.This was a serious chunk of change 80 years ago unlike today lol,but then again why did he commit suicide?We will never know...
RIP Mr Livermore,for you have influenced millions of traders that came after you :)
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There may be a few out there who will listen to some advice from a speculator who was trading in the markets before most of our parents were born.His name was Jesse Livermore and his advice is timeless, and is as true today as it was then because the essential game remains unchanged.The markets were driven by human emotion then, and they are driven by those same emotions now.I am thankful that two books were written that contain his wisdom.They put me on the road to profitability where before them, I had only lost money.
The titles are:
Reminiscences of a Stock Operator by Edwin Lefevre
How to Trade in Stocks by Jesse Livermore
Jesse Livermore worlds greatest stock trader Richard Smitten
RIP Mr Livermore,your legacy lives on
www.jesse-livermore.com
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