This week we are going to break above 1376$.
Most of you know I'm a big Jesse Livermore fan. This part is my favorite of the book of his life written by Edwin LeFevre.
"There was as much to learn from partial victory as from defeat.
For instance, I had been from the very start of a market, and I had backed
my opinion by buying stocks. An advance followed, as I had clearly foreseen. So far, all
very well. But what else did I do? Why, I listened to the elder statesmen and curbed my
youthful impetuousness. I made up my mind to be wise and play carefully,
conservatively. Everybody knew that the way to do that was to take profits and buy back
your stocks on reactions. And that is precisely what I did, or rather what I tried to do; for
I often took profits and waited for a reaction that never came. And I saw my stock go
kiting up ten points more and I sitting there with my four-point profit safe in my
conservative pocket. They say you never grow poor taking profits. No, you don't. But
neither do you grow rich taking a four-point profit in a market.
Where I should have made twenty thousand dollars I made two thousand. That was what
my conservatism did for me. (...)
In Fullerton's there were the usual crowd. All grades! Well, there was one old chap who was not like the others. To begin with, he was a much older man. Another thing was that he never volunteered advice and never
bragged of his winnings. He was a great hand for listening very attentively to the others.
He did not seem very keen to get tips that is, he never asked the talkers what they'd
heard or what they knew. But when somebody gave him one he always thanked the
tipster very politely. Sometimes he thanked the tipster again when the tip turned out
O.K. But if it went wrong he never whined, so that nobody could tell whether he
followed it or let it slide by. It was a legend of the office that the old jigger was rich and
could swing quite a line. But he wasn't donating much to the firm in the way of
commissions; at least not that anyone could see. His name was Partridge, but they
nicknamed him Turkey behind his back, because he was so thick-chested and had a habit
of strutting about the various rooms, with the point of his chin resting on his breast.
The customers, who were all eager to be shoved and forced into doing things so as to lay
the blame for failure on others, used to go to old Partridge and tell him what some friend
of a friend of an insider had advised them to do in a certain stock. They would tell him
what they had not done with the tip so he would tell them what they ought to do. But
whether the tip they had was to buy or to sell, the old chap's answer was always the
Time and again I heard him say, "Well, this is a market, you know!" as though he
were giving to you a priceless talisman wrapped up in a million-dollar accidentinsurance
What old Mr. Partridge said did not mean much to me until I began to think about my
own numerous failures to make as much money as I ought to when I was so right on the
general market. The more I studied the more I realized how wise that old chap was. He
had evidently suffered from the same defect in his young days and knew his own human
weaknesses. He would not lay himself open to a temptation that experience had taught
him was hard to resist and had always proved expensive to him, as it was to me.
I think it was a long step forward in my trading education when I realized at last that
when old Mr. Partridge kept on telling the other customers, "Well, you know this is a
market!" he really meant to tell them that the big money was not in the individual
fluctuations but in the main movements that is, not in reading the tape but in sizing up
the entire market and its trend.
- Reminiscences of a Stock Operator-
Enjoy the show.
You know it's a bull market.