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Jesse Livermore on Being Clear on the Trade-offs to Reach Your Goals

  
Analysis, Education
  • An earnest young newsman went up to Jesse Livermore one day and asked if he felt it was worthwhile to become a millionaire, considering all the strife and struggle one had to go through to get there. Livermore responded that he liked money a lot, so it was certainly worthwhile to him. But aren’t there nights when a stock trader can’t sleep? the reporter pursued. Is life worth living when you’re worried all the time?
  • “Well now, kid, I’ll tell you,” Livermore said. “Every occupation has its aches and pains. If you keep bees, you get stung. Me, I get worried. It’s either that or stay poor. If I’ve got a choice between worried and poor, I’ll take worried anytime.”
  • Livermore admitted that he worried about his speculations all the time, even in his sleep. But hen he said that was all right by him. “It’s the way I want it,” he said. “I don’t think I’d enjoy life half as much if I always knew how rich I was going to be tomorrow.”

Ernest Hemingway

  
  Education
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‘The Old Man and the Sea’ is my favourite work by Hemingway. Here are two quotes that have direct parallels with trading:  

He looked down into the water and watched the lines that went straight down into the dark of the water. He kept them straighter than anyone did, so that each level in the darkness of the stream there would be a bait waiting exactly where he wished it to be for any fish that swam there. Others let them drift with the current and sometimes they were at sixty fathoms when the fishermen thought they were at a hundred. But, he thought, I keep them with precision. Only I have no luck any more. But who knows? Maybe today. Every day is a new day. It is better to be lucky. But I would rather be exact. Then when luck comes you are ready.’ 

And the great sea with its friends and its enemies. And bed, he thought. Bed is my friend. Just bed, he thought. Bed will be a great thing. It is easy when you are beaten, he thought. I never knew how easy it was. And what beat you, he thought. ‘Nothing’, he said aloud. ‘I went out too far.’

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