Jesse Livermore - Market Key

[Dackster]

Quote from epiktetos:

Agreed

Thanks epiktetos, i know it's all nonsense at a very basic level, but it's funny what some people come up with.

 

[riskfreetrading]

Quote from gnome:

.... the fact is that the huge majority of trading decisions are 50-50 in probability of working out.

.

I disagree. On average, it is at least 66.6% losing against at most 33.34 winning. I can prove it. We are assuming risk is less than reward.

The majprity of readers who tried (paper or real) trading will know that it is true. If you did not notice it yet, go back to your records, and you will find that I am right.

 

[Compulsive]

Quote from Dackster:

What's your view?

He was like my "name"

 

[Dackster]

Quote from riskfreetrading:

I disagree. On average, it is at least 66.6% losing against at most 33.34 winning. I can prove it. We are assuming risk is less than reward.

The majprity of readers who tried (paper or real) trading will know that it is true. If you did not notice it yet, go back to your records, and you will find that I am right.

I make money every day, but i have losing trades.

 

[donnap]

Quote from Compulsive:

He was like my "name"

Exactly, his fatal flaw. A great trader nevertheless, IMO. He also lost millions in business ventures, time after time. Something wrong there.

 

[GCSICLRBC]

One move Livermore claimed he used was buying on a breach of strong resistance & selling on a breach of strong support.

Pretty simple. In "Reminisces..." there's a few paragraphs about a wheat trade where he prob. used stops to open on new highs...

He was also a nut.

But he had the Support & Resistance part right.

Happy holidays!!

 

[Cygnus Atratus]

Quote from pjones2012:

I have read a couple great books on Jesse Livermore.

One thing I did not make out (I must have missed it) is what price did Mr. Livermore use for his maket key ananlysis.

What is the: open, high, low, or close.

Does anyone in this forum have any thoughts on this?

Thanks - pjones2012

Looks like 2000 years later, the hunt for The HOLY GRAIL continues, boy l love this business

 

[Cherrypicker]

Quote from NeoRio1:

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.

.....that just about sums it up

 

[athlonmank8]

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.

Your head is still buried in the sand?

 

[pjones2012]

Quote from NeoRio1:

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.

NeoRio1,

Thank you for your post.

Well if Jesse Livermore's "How to Trade in Stocks" is the only book you have read I consider it to be a real classic.

It is "my personal opinion" that Mr. Livermore either wrote under a pen name of Edwin Lefevre or had Mr. Lefevre edit his first book. The book is "Reminiscences of a Stock Operator" by Edwin Lefevre.

This is a true classic. And the great thing is that it is available on CD as an AUDIO BOOK as well as paperback.

For anyone wanting to do any reading or research on Mr. Livermore I would recommend the following books in the following order.

1. "Reminiscences of a Stock Operator" - Edwin Lefevre

2. "How to Trade in Stocks" - Jesse Livermore (1940) - or Richard Smitten's later updated and expanded version.

3. "Jesse Livermore - World's greatest Stock Operator" - Richard Smitten.

Everything that you had said in your response I basically agree with.

Thanks again.