Jesse Livermore

Re: Jesse Livermore

Postby winston » Fri Jan 04, 2013 7:54 pm

Nine Lessons From The Greatest Trader Who Ever Lived By Steve Christ

The stock market has certainly produced its share of heroes and villains over the years. And while villains have been many, the heroes have been few.

One of the good guys (for me, at least) has always been Jesse L. Livermore. He's considered by many of today's top Wall Street traders to be the greatest trader who ever lived.

Leaving home at age 14 with no more than five bucks in his pocket, Livermore went on to earn millions on Wall Street back in the days when they still literally read the tape.

Long or short, it didn't matter to Jesse.

Instead, he was happy to take whatever the markets gave him because he knew what every good trader knows: Markets never go straight up or straight down.

In one of Livermore's more famous moves, he made a massive fortune betting against the markets in 1929, earning $100 million in short-selling profits during the crash. In today's dollars, that would be a cool $12.6 billion.

That's part of the reason why an earlier biography of his life, entitled Reminiscences of a Stock Operator, has been a must-read for experienced traders and beginners alike.

A gambler and speculator to the core, his insights into human nature and the markets have been widely quoted ever since.

Here are just a few of his market beating lessons:


On the school of hard knocks:

The game taught me the game. And it didn't spare me rod while teaching. It took me five years to learn to play the game intelligently enough to make big money when I was right.


On losing trades:

Losing money is the least of my troubles. A loss never troubles me after I take it. I forget it overnight. But being wrong - not taking the loss - that is what does the damage to the pocket book and to the soul.


On trading the trends:

Disregarding the big swing and trying to jump in and out was fatal to me. Nobody can catch all the fluctuations. In a bull market the game is to buy and hold until you believe the bull market is near its end.


On sticking to his plan:

What beat me was not having brains enough to stick to my own game - that is, to play the market only when I was satisfied that precedents favoured my play. There is the plain fool, who does the wrong thing at all times everywhere, but there is also the Wall Street fool, who thinks he must trade all the time. No man can have adequate reasons for buying or selling stocks daily - or sufficient knowledge to make his play an intelligent play.


On speculation:

If somebody had told me my method would not work, I nevertheless would have tried it out to make sure for myself, for when I am wrong only one thing convinces me of it, and that is, to lose money. And I am only right when I make money. That is speculating.


On respecting the tape:

A speculator must concern himself with making money out of the market and not with insisting that the tape must agree with him. Never argue with it or ask for reasons or explanations.


On human nature and trading:

The speculator's deadly enemies are: Ignorance, greed, fear and hope. All the statute books in the world and all the rule books on all the Exchanges of the earth cannot eliminate these from the human animal.


On riding the trend to the big money:

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 the nature of Wall Street:

Wall Street never changes, the pockets change, the suckers change, the stocks change, but Wall Street never changes, because human nature never changes.

So, what ever happened to Jesse L. Livermore?

He didn't die a poor man - not by any stretch of the imagination.

But he did take his own life, believing he was "a failure," which proves once again that money can't buy happiness.

http://moneymorning.com/2013/01/04/nine ... ver-lived/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Jesse Livermore

Postby iam802 » Thu Feb 20, 2014 11:23 am

9 Things that Jesse Livermore said:

http://www.ritholtz.com/blog/2014/02/ni ... more-said/

1. “Money is made by sitting, not trading.”

2. “It takes time to make money.”

3. “It was never my thinking that made the big money for me, it always was sitting.”

4. “Nobody can catch all the fluctuations.”

5. “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 everyday, as though they were working for regular wages.”

6. “Buy right, sit tight.”

7. “Men who can both be right and sit tight are uncommon.”

8. “Don’t give me timing, give me time.”

and finally, the most important thing:

9. “There is a time for all things, but I didn’t know it. And that is precisely what beats so many men in Wall Street who are very far from being in the main sucker class. There is the plain fool, who does the wrong thing at all times everywhere, but there is the Wall Street fool, who thinks he must trade all the time. Not many can always have adequate reasons for buying and selling stocks daily – or sufficient knowledge to make his play an intelligent play.”

1. Always wait for the setup. NO SETUP; NO TRADE

2. The trend will END but I don't know WHEN.

TA and Options stuffs on InvestIdeas:
The Ichimoku Thread | Option Strategies Thread | Japanese Candlesticks Thread
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Re: Jesse Livermore

Postby winston » Sun Apr 20, 2014 1:53 am

Nine Lessons From The Greatest Trader Who Ever Lived

http://moneymorning.com/2013/01/04/nine ... ver-lived/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Jesse Livermore

Postby winston » Sun Aug 03, 2014 8:05 pm

The Wisdom of Jesse Livermore

http://www.youtube.com/watch?v=CU-mfgW6iVQ
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Jesse Livermore

Postby winston » Fri Sep 19, 2014 6:41 pm

Jesse Livermore's trading rules still hold true almost 75 years later

http://finance.yahoo.com/news/jesse-liv ... 41700.html
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Jesse Livermore

Postby winston » Tue Jan 12, 2016 7:02 pm

Jesse Livermore's trading rules still hold true almost 75 years later

Source: Yahoo Finance

https://en.wikipedia.org/wiki/Jesse_Lauriston_Livermore

http://finance.yahoo.com/news/jesse-liv ... 41700.html
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Jesse Livermore

Postby winston » Mon Jun 20, 2016 3:41 pm

Should You Trade Like the Late Jesse Livermore?

By JAMES "REV SHARK" DEPORRE

Livermore made more than $100 million in a week during the crash, or about $1.4 billion in today's terms after adjusting for inflation. That could be the most money that any trader has ever made in such a short period of time.


He sometimes didn't make significant trades for years.

The trader would bide his time, then go in as big as possible when he felt he had the right conditions.

And once a trade was working for him, he would stay with it and ride the trend until there was some clear reason not to any more.






Source: The Street

http://realmoney.thestreet.com/articles ... yptr=yahoo
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Books 03 (Dec 09 - Dec 22)

Postby behappyalways » Sun Aug 21, 2022 8:42 pm

Edwin Lefèvre, Reminiscences of a Stock Operator

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.

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 or 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.

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.

“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.”
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Re: Jesse Livermore

Postby winston » Sun Aug 21, 2022 11:03 pm

by behappyalways

Edwin Lefèvre, Reminiscences of a Stock Operator

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.

Edwin Lefèvre, Reminiscences of a Stock Operator


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 or 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.

Edwin Lefèvre, Reminiscences of a Stock Operator
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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