Jesse Livermore - Market Key

Quote from nazzdack:

I don't know any subtle way to break this news to you but the book you're referring to was meant to be a cruel "joke". Livermore didn't mean to reveal anything of value in it. It's a bunch of mathematical jibberish. Considering the number of times Livermore went from rags-to-riches-back to-rags, he didn't practice what he preached and/or he never really knew what he was doing to begin with.
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Dear Nazzdack,

Thank you for your response.

I am sure I could follow your line of reason and come to same conclusions.

You have obviously have been exposed to information on Mr. Livermore.

I respect your opinions.

I personally think that he couldn't always "practice as he preached".

As far as his "Market Key" being "mathematical gibberish" I may let you know after I run the numbers.;)

Nazzdack - in your opinion what "daily value of price" do you think he/you would use?

Thank you and anyone for any suggestions you may have. :)
 
Quote from Illum:

Isnt it none of the above?
His prices were pivot points, looking for breakouts or breakdowns from. To see if he could trend with it. He waited for a cross of the pivot. Doesn't matter anyway, he couldn't hold madoff's jock.
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Hey Illum,

Thanks for your response.

I understand the "pivot points" and the "advances and declines" he was trying to catch - this is all very true.

His "Market Key" was his "mathematical tool" he used for analyzing (decoding) the markets - to determine potential "Pivot Points".

So I am very interested "the value of each day's price" he used in his calculations.

And furthermore . . .

I do not know of anyone who could have madoff with bernie's jock.:D
 
Quote from pjones2012:

Nazzdack - in your opinion what "daily value of price" do you think he/you would use?
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1) What would he use? I don't know. I flunked mind reading in school.
2) I would never use "it".
3) My opinion is that you're wasting your time with a "bogus" treasure map that leads to nowhere.
 
From my copy of Jesse Livermore's "How To Trade In Stocks", from page 74, rule 6b:

"In case a price is made which is lower than the last recorded price in the Downward Trend column, you would then record that price in the Downward Trend column."

from page 75, rule 6d:

"In case a price is made which is higher than the last recorded price in the Upward Trend column, you would then record that price in the Upward Trend column."

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I interpret this to mean that if price values are increasing then Jesse Livermore records high daily price values. If price values are decreasing then Jesse Livermore records low daily price values.

I suspect the Livermore Market Key is widely used. I notice increased stock trading volume on those sessions that coincide with Livermore Market Key buy and sell signals.
 
Quote from Hook N. Sinker:

From my copy of Jesse Livermore's "How To Trade In Stocks", from page 74, rule 6b:

"In case a price is made which is lower than the last recorded price in the Downward Trend column, you would then record that price in the Downward Trend column."

from page 75, rule 6d:

"In case a price is made which is higher than the last recorded price in the Upward Trend column, you would then record that price in the Upward Trend column."


===

I interpret this to mean that if price values are increasing then Jesse Livermore records high daily price values. If price values are decreasing then Jesse Livermore records low daily price values.

I suspect the Livermore Market Key is widely used. I notice increased stock trading volume on those sessions that coincide with Livermore Market Key buy and sell signals.
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Hook N. Sinker,

Thank you very much for your response.

Kudos to you partner! I do believe you hit the nail dead square on the head.

The solution to that part of the puzzle was and is very important to me.

And I do believe your response to be accurate one or at least good enough for me to proceed with "price recording". Which I am excited about and looking forward to do.

Now for the bizarre part.

In spite to much contemplation to not mention this I will nonetheless do so.

What I am about to share with you next may sound a little bit strange to you as well as those who read this but I will just be candid and recount the incident hopefully to someone's benefit.

I was up till past 4:00 AM yesterday about the same time as apparently you, as well as others, were on the computer reading and posing here in elite trader.

I say my prayers and go to bed to try to go to sleep because within 4 hours I would start my very physically demanding sixteen (16) hour workday.

I try to close my eyes and go to sleep. Then I noticed my eyes literally started opening on there own.

Then I notice a voice in my mind saying "it is the extreme price value"!

LOL . . . I know this is starting to sound a little funny and I know little strange as well.

So my next proceeding three (03) thoughts were as follows:

1. you got to get up in less than 4 hours and work a double shift . . . go to sleep!!!

2. "it's the extreme price value" . . . again

3. Could this be the "price value" - kick off the covers and get out of bed and go look!

The version of Livermore's "How to Trade in Stock" I have is Richard Smitten's 200l version. Mr. Smitten includes 4 chapters of his own between Mr. Livermore's seventh (7th) and the eighth (08th) (and final) chapter of the Mr. Livermore's book. This chapter is - Mr. Livermore's "Market Key".

It sounds to me that you may have a copy of the original 1940 version?

In my book Livermore's last chapter the pages are not numbered. However on the third (3rd) page second (2nd) paragraph at probably about the same time - plus or minus - you located page 74 as you reference in your "posted reply" at 5:04 AM.

I read the following:

"When a "recording point" has been reached - that is, a move of six points average by each of the two stocks - I continue to set down in that same column the "extreme price" made any day, whenever it is higher than the last price recorded in the Upward Trend Column or is lower that the last price recorded in the Downward Trend column."

The quotes within the quotes are mine for emphasis only.

At this moment I could not believe the course of the events that just occurred over the preceding . . . I do not know - let's say last 45 minutes.

I was very happy thinking I had found the answer to the question that I was intently seeking?

I thought it amusing that I had found the answer on my own.

The thought then came to me that maybe I had somehow accessed the information someway through someone on Etlite Trader who knew the answer.

My conclusion from what I read and your interpretation from what you read were in effect the same as far as I can see and tell.

Sorry for the long winded reply.

So you can imagine my surprise when I come back from work today and read your posted reply.

So Hook N. Sinker - THANK YOU for hooking that fish and pulling it onto the boat. :) Great Job!

As far as "volume" goes Mr. Smitten points out that this was an extremely important indicator for Mr. Livermore.

He used "volume" to help identify the "pivot points". He used "aberrations in volume" to identify "accumulation" or "distribution" of the stock.

I will include "Volume" in my record keeping as well.

Once again - Thanks a lot for your efforts and response.:)
 
How to trade stocks by Jesse Livermore was the only stock market book I ever read.

Livermore never looked at charts. Instead he would record the price of stocks in a journal and would base his long term trades off of these recorded prices.

He would only trade the market at the most 5 times in one year. You could call Livemore a weekly swing trader to a monthly trend trader.

I interpret everything Livermore has ever said in that book to the ability of trading trends.

If livermore was alive today he most likely would have gone short a year ago and would probably still be short.
 
Livermores 'market genius' was out of control, he had almost everything, in fact he had everything at certain points in his 'career'.

He toyed with his own insight, he took his insight to the very edge and came out on top, a dangerous game.

Livermore is a 'great', it's just a shame there was a slight kink in his armour,....his ego.
 
Here we go agaiin...LIVERMORE the great trader....divorced three times. bankrupt 4 times and "dies" (sounds better than suicide) flat broke.....sounds like a winer to me :cool:
 
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