Showing posts with label Reminiscences of a Stock Operator. Show all posts
Showing posts with label Reminiscences of a Stock Operator. Show all posts

Friday, July 8, 2016

How Jesse Livermore Made and lose Fortunes in the Stock Market

How Jesse Livermore Made Fortunes in the Stock Market

Legendary Trader - Jesse Livermore
Jesse Livermore was a notorious stock market speculator during the first half of the 20th century. He was a major force on Wall St in markets that were plagued by the same hopes and fears as today's. “Reminiscences of a stock operator” in 1923 offers timeless insight and wisdom for traders offered by Livermore. Lessons taught can be applied to today’s markets:
  • Use a system and don’t deviate from it.
  • If a market doesn’t act right do not touch it; being unable to tell precisely what is wrong, means you cannot tell which way the market is going.
  • Don’t blame the market for losses.
  • Do not seek to lure profit back. Quit while the quitting is good- and cheap.
  • A Speculators chief enemy is boredom, don’t seek a trade let the trade seek you.
  • Use money management at all times.
  • Establish a trading plan.
  • Detail and analyse each trade thoroughly.
  • Establish entry and exit points and risk reward ratios.
  • Accept small losses as part of the game.
  • Do not concentrate on breakeven levels when you are losing.
  • Develop a trading plan for every possible situation that might occur.
  • Follow exit plans with rigid discipline.
  • Do not be overly cautious, simple trades are best.
  • Sustain patience; big movements can take a long time.

  • We hope these pearls of wisdom help.

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