He once said, "Knowing what not to do is more important than knowing what to do."
Jesse Livermore, An American speculator, was born in rural Massachusetts in 1877. He started with $5, and 40 years later netted more than $100 million. Indeed, the New York Times did a poll in 1999, and he was named "The first 100 years of American stocks." No one sits on the throne forever, except for one man, Livermore, who has penetrated the wall of time.
Livermore's rule of trading:
Good investors are always waiting, always patient;
2. In order to make money through speculation, one must buy and sell commodities or stocks that show a profit from the very beginning.
3, never amortize losses, to bear in mind this principle;
4. When a price enters a clear trend, it automatically moves along a particular route that runs through the trend.
5, when investors see danger signals, should avoid;
6. Looking for profit from other investors' mistakes when doing nothing;
You can benefit from knowing where the trend is, riding it, and riding the speculative boat.
8. At any time, be patient and wait for the market to reach what I call a "tipping point". Only then. To profit from the transaction;
Livermore's rule of thumb is that if you don't get in close to the start of a trend, you never make much profit from it.
10. "Rome wasn't built in a day. The real major trends don't end in a day or a week.
Shifty livermore
His hostile eyes glared at me and I said, "I didn't ask you to buy it."
"What haven't you done?"
"I didn't tell you to buy and hold positions."
"I didn't say you told me to buy it, but you should have..."
"Why would I do that?" "I interrupted.
He looked at me, too angry to say a word. He paused and said, "You should have raised the price. You had the money."
"Yes, but I didn't buy any." I told him.
This finally made him explode.
"You didn't buy any shares! You've got over four million dollars in cash and you haven't bought any fucking shares?"
"Not a single share." "I repeated.
At this he became so angry that he could not speak, and finally said, "What is your game?"
I could see in his eyes that he was mentally accusing me of a heinous crime, so I said to him, "What you really want to know, Wolfe, is why I didn't buy those stocks you bought for $40 and $50, right?"
"No, not so. You have the option at $40 and $4 million in cash to drive up the price."
"Yes, but I didn't touch the money, and my actions didn't cost the fund a cent."
"Listen to me, Livingston..." He said.
But I stopped him. "Listen to me, Wolf. You know, the 200,000 shares that you, Gordon and Kane hold are locked up, and if I drive up the price, there won't be a block of shares coming to the market. I lift stocks for two purposes: first, to create a market for the stock, and second, to profit from my rights at 40 points.
One person can beat a stock, but no one can win the market.
Today's artisans have little need to think about what they did or how they did it, any more than west Point cadets need to learn archery to increase their ballistics. On the other hand, a study of the human element of speculation makes it easy to understand why people believe what they wish to believe, why they indulge or indeed encourage themselves to be greedy for money, or to lose it through carelessness, as so many people do. Fear is as permanent as hope, so studying investor psychology is as valuable as ever. Weapons can change, but strategy is always strategy, and trading on the New York Stock Exchange is the same as fighting on the battlefield.
Thanks for watching. Next time we'll talk about trading champion Martin. Schwartz
Article reference "stock for hand memoirs", adhere to the original, welcome to reprint.
Jesse Livermore, An American speculator, was born in rural Massachusetts in 1877. He started with $5, and 40 years later netted more than $100 million. Indeed, the New York Times did a poll in 1999, and he was named "The first 100 years of American stocks." No one sits on the throne forever, except for one man, Livermore, who has penetrated the wall of time.
Livermore's rule of trading:
Good investors are always waiting, always patient;
2. In order to make money through speculation, one must buy and sell commodities or stocks that show a profit from the very beginning.
3, never amortize losses, to bear in mind this principle;
4. When a price enters a clear trend, it automatically moves along a particular route that runs through the trend.
5, when investors see danger signals, should avoid;
6. Looking for profit from other investors' mistakes when doing nothing;
You can benefit from knowing where the trend is, riding it, and riding the speculative boat.
8. At any time, be patient and wait for the market to reach what I call a "tipping point". Only then. To profit from the transaction;
Livermore's rule of thumb is that if you don't get in close to the start of a trend, you never make much profit from it.
10. "Rome wasn't built in a day. The real major trends don't end in a day or a week.
Shifty livermore
His hostile eyes glared at me and I said, "I didn't ask you to buy it."
"What haven't you done?"
"I didn't tell you to buy and hold positions."
"I didn't say you told me to buy it, but you should have..."
"Why would I do that?" "I interrupted.
He looked at me, too angry to say a word. He paused and said, "You should have raised the price. You had the money."
"Yes, but I didn't buy any." I told him.
This finally made him explode.
"You didn't buy any shares! You've got over four million dollars in cash and you haven't bought any fucking shares?"
"Not a single share." "I repeated.
At this he became so angry that he could not speak, and finally said, "What is your game?"
I could see in his eyes that he was mentally accusing me of a heinous crime, so I said to him, "What you really want to know, Wolfe, is why I didn't buy those stocks you bought for $40 and $50, right?"
"No, not so. You have the option at $40 and $4 million in cash to drive up the price."
"Yes, but I didn't touch the money, and my actions didn't cost the fund a cent."
"Listen to me, Livingston..." He said.
But I stopped him. "Listen to me, Wolf. You know, the 200,000 shares that you, Gordon and Kane hold are locked up, and if I drive up the price, there won't be a block of shares coming to the market. I lift stocks for two purposes: first, to create a market for the stock, and second, to profit from my rights at 40 points.
One person can beat a stock, but no one can win the market.
Today's artisans have little need to think about what they did or how they did it, any more than west Point cadets need to learn archery to increase their ballistics. On the other hand, a study of the human element of speculation makes it easy to understand why people believe what they wish to believe, why they indulge or indeed encourage themselves to be greedy for money, or to lose it through carelessness, as so many people do. Fear is as permanent as hope, so studying investor psychology is as valuable as ever. Weapons can change, but strategy is always strategy, and trading on the New York Stock Exchange is the same as fighting on the battlefield.
Thanks for watching. Next time we'll talk about trading champion Martin. Schwartz
Article reference "stock for hand memoirs", adhere to the original, welcome to reprint.
