It is the way a man looks at things-Reminiscences of a Stock Operator

“It is the way a man looks at things that makes or loses money for him in the speculative markets”, states Livermore. It is the habitual attitude that sets the experienced professional apart from the beginner. The ego driven thought patterns, not unlike the thinking of crowds, tends to be shallow and superficial.

Three different examples of successful large-scale trading campaigns are given to illustrate the thinking and the attitudes behind the trade. The first case study relates the correlation between activity in different ag markets. The second is an example where Addison Cammack uses the information from a tipster as a means of playing for position in the general market. The third campaign centers around a repeating theme: the opportunity needed to liquidate a large, profitable position. Often, the large trader must liquidate when the market is there to absorb a large line. Days of high liquidity and high volume are opportunities that must be watched for and acted upon quickly. In each example, the thinking of the crowd (and that of the tipster) is contrasted by the correct assessment of the large trader – this is one of the most important themes that is repeated in every chapter.

It occurred to me that Larry always has a reference to where he learned his lessons. That is, he always has a story or an example of the actions of other traders to support the rational of his actions. I only just realized that he must have done the very same thing I am doing now… researching and learning all he could from others.

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