Jesse Livermore timeless wisdom

I just finished re-reading it! I thought it might be fun to analyze the trading tactics he describes in that book.

- a breakout system where you see a range, and either buy a break above it or short the break below

- a momentum "pop" through 100 number resistance which I think is maybe sort of relevant with just plain old pops through any number resistance since "par" at $100 doesn't seem to factor into value now

- "advertising" a stock to draw in speculators by providing liquidity from your own "pool" (with millions in backing) then helping drive the price up, and when the price is high enough and there is enough liquidity you sell out on the way down (EFUT??)

- his bucket shop scalping which he couldn't translate into trading with a real broker is a little more feasible now that we got computers and such, we don't have to wire an order and wait for a broker to take a walk on the NYSE floor (oh wait a minute, we still do!!! lol!!!!!)

- the old dude who looked like a turkey and just went long and stayed long during bull markets instead of jumping in and out "why it's a bull market of course"

- checking the condition of a stock by putting out feeler orders to see how the market absorbs them and responds, before fully putting on a position

What did I miss...
 
Quote from a529612:

What does he mean by "boredom"? Forced trades?

"* The speculator's chief enemies are always boredom from within."
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I took it to mean that it may be tough to find the RIGHT opportunities, and you may get bored by not trading at all until you do find them.
 
Quote from chrisofj:

I just finished re-reading it! I thought it might be fun to analyze the trading tactics he describes in that book.

- a momentum "pop" through 100 number resistance which I think is maybe sort of relevant with just plain old pops through any number resistance since "par" at $100 doesn't seem to factor into value now
More...

Does GOOG ring a bell? It didn't stop at "par" $500 but ran all the way up to $510.
 
Quote from a529612:

Does GOOG ring a bell? It didn't stop at "par" $500 but ran all the way up to $510.
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Par value of an equity (a stock) is a somewhat archaic concept. The par value of a stock was the share price upon initial offering; the issuing company promised not to issue further shares below par value, so investors could be confident that no one else was receiving a more favorable issue price. This was far more important in unregulated equity markets than in the regulated markets that exist today.
 
I don't know how many of you know, but this book wasn't written by Livermore himself.It was written by a journalist who interviewed Livermore for a few days.

Livermore has written a short book called 'How to Trade in Stocks', which is worth getting.Its not only about stocks but about futures and trading in general.

I think its rare and hard to get.I've got a copy, but if anyone has a source for it please post.

blackguard
 
Livermore seemed to make the point that you can't overcome your psychological makeup so you have to trade with a strategy that won't allow your psychological makeup to undermine you.
 
Quote from islands111:

I don't know how many of you know, but this book wasn't written by Livermore himself.It was written by a journalist who interviewed Livermore for a few days.

Livermore has written a short book called 'How to Trade in Stocks', which is worth getting.Its not only about stocks but about futures and trading in general.

I think its rare and hard to get.I've got a copy, but if anyone has a source for it please post.

blackguard
More...

Send me a PM if you would like to 'PDF view' the book.
 
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