Jesse Livermore timeless wisdom

easyguru · Dec 29, 2006

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

Amazon

JamesVU2000 · Dec 29, 2006

I think he was bipolar which meant at times he was able to take incredible risks that other people wouldnt have been able to do. Makes sense because they have found that people with mental disorders are capable of taking huge risks because there emotions are underdeveloped.

paperclip · Dec 29, 2006

Quote from efficiency:

For clarification, here's a sketchy chronology:

...[lots of details about Livermore]...

efficiency,

Your post was very interesting and contained a lot of details about Livermore that I have not seen anywhere else. What source(s) did you use?

bsmeter2 · Dec 29, 2006

The guy went bankrupt several times and finally shot himself in the head sitting alone in a toilet.

He died bankrupt. so much for his market wisdom. lol.

bsmeter2 · Dec 29, 2006

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

The guy wrote the book trying to raise money for his next stake after filing for bankruptcy. I have one of the few copies he ever autographed and I can safely state there is nothing in that book that can help anyone become a better trader. To get an idea of trend trading , you're better off reading the free Turtle trading source material online.

Hooked2000 · Dec 29, 2006

There are some nuggets in the book...but todays trader doesn't have the luxury of cornering markets like livermore and his groups did.

Hume1515 · Dec 29, 2006

Quote from bsmeter2:

The guy wrote the book trying to raise money for his next stake after filing for bankruptcy. I have one of the few copies he ever autographed and I can safely state there is nothing in that book that can help anyone become a better trader. To get an idea of trend trading , you're better off reading the free Turtle trading source material online.

I also have the book, and it's a great book.

a529612 · Dec 29, 2006

Quote from bsmeter2:

The guy went bankrupt several times and finally shot himself in the head sitting alone in a toilet.

He died bankrupt. so much for his market wisdom. lol.

Get your facts straight:

"Although untouchable trusts and cash assets at his death totalled over $5 million, he had failed to regain his trading confidence by his death. A lifelong history of clinical depression had finally become the dominant factor in his final years."

http://en.wikipedia.org/wiki/Jesse_Livermore

stock_trad3r · Dec 29, 2006

Quote from a529612:

Reminiscences of a Stock Operator published in 1923 offers timeless wisdom for all investors and traders:

* Never act on tips.
* Use a system and don't deviate from it.
* Never buy a stock because it has had a big decline from its previous high.
* 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.
* Don't blame the market for your losses.
* Never add to a losing position. A losing position means you were wrong.
* Stocks are never too high for you to begin buying or too low to begin selling. But after the initial transaction, don't make a second unless the first shows you a profit.
* Always sell what shows you a loss and keep what shows you a profit.
* Don't argue with the tape. Do not seek to lure the profit back. Quit while the quitting is good--and cheap.
* There is only one side to the stock market; and it is not the bull side or the bear side but the right side.
* The speculator's chief enemies are always boredom from within.
* A man must believe in himself and his judgment if he expects to make a living at this game.
* Bulls and bears make money, but pigs get slaughtered.
* Use money management at all times.
* Establish your trading plan before the markets open.
* Detailed your plan for each trade.
* Establish entry and exit points and understand risk reward rations.
* Accept small losses as part of the game if you want to win.
* Trade markets from the short side.
* Stand aside from a position, knowing you have taken a position.
* Develop a trading plan for each potential situation you may face.
* Do not look at quotes during the day.
* Do not concentrate on break-even levels when you are losing.
* Don't liquidate a winner to keep a loser.
* Develop and maintain an exit plan. Follow this plan with rigid discipline.
* Sustain your patience. Big movements take time to develop.
* Don't be overly curious about the rationale behind a move. The key to wealth in trading is simplicity.

How about this:

*Buy stocks that go up.