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Reminiscences of a Stock Operator (Jesse Livermore) : Edwin Lefevre 1923

101% Must Read this article +Buy this Book too …A Bible for Every Trader !

The book starts with Livermore’s early trading career that was essentially scalping the markets for short trem profits using the tape and how he got to understand price movements before a bullish or bearish run. Livermore made $millions 3 times and lost it each time. He sadly ended up committing suicide in 1940 in the Sherry Netherland Hotel. He had amassed a $100m fortune by this time and no-one knew what happended to it. Maybe a trading disaster of some kind….who knows.

Some quotes and passasges I loved from the book

Grades of Suckers : The beginner knows nothing and everybody, including himself, knows it. But the next, or second, grade thinks he knows a great deal and makes others feel that way too. He is the experienced sucker, who has studied not the market itself but a few remarks about the market made by a still higher grade of suckers. The second-grade sucker knows how to keep from losing his money in some of the ways that get the raw beginner. It is this semisucker rather than the 100 per cent article who is the real all-the-year-round support of the commission houses. He lasts about three and a half years on an average, as compared with a single season of from three to thirty weeks, which is the usual Wall Street life of a first offender. It is naturally the semisucker who is always quoting the famous trading aphorisms and the various rules of the game. He knows all the don’ts that ever fell from the oracular lips of the old stagers excepting the principal one, which is: Don’t be a sucker!

This semisucker is the type that thinks he has cut his wisdom teeth because he loves to buy on declines. He waits for them. He measures his bargains by the number of points it has sold off from the top. In big bull markets the plain unadulterated sucker, utterly ignorant of rules and precedents, buys blindly because he hopes blindly. He makes most of the money until one of the healthy reactions takes it away from him at one fell swoop.

Sitting Tight : It was never my thinking that made me my big money; but my sitting. Sitting tight! Men who can both be right and sit tight are uncommon

Being Wrong : I was wrong; and the only thing to do when a man is wrong is to be right by ceasing to be wrong. get out of the trade.

Being Right : What is the use of being right unless you get the most use out of it ?! (maximising trades)

News : I work in harmony with the markets and take the path of least resistance every time. The trend is always established before the news is published. In Bull markets bear items are ignored and Bull items are exaggerated. (more…)

Power of Charts

thumbs_upThe critical ingredient is a maverick mind. Focus on trading vehicles, strategies and time horizons that suit your personality. In a nutshell, it all comes down to: Do your own thing (independence); and do the right thing (discipline).

Just 6 Days back written to Buy :Nagarjuna Const ,Hind Construction.

-From 142-155 stock number one had spurted and our Darling stock spurted from 112-130.

Last week Boldly written :Worst is over for Shipping Stocks.

G.E Shipping ,Mercator Lines :Yes both stock were on Fire and still looking hot and fiery.

Always Remember :Repeatedly reevaluate your open positions. Keep asking yourself: would I put my money into this if it were presented to me for the first time today? Is this trade progressing toward the ending position I envisioned?

Updated at 9:38/22nd Sept/Baroda

Phil Jackson’s 11 Mindful Leadership Principles

1. Lead From the Inside Out. Avoid fads. Lead from who you are. “As time went by, I discovered that the more I spoke from the heart, the more players could hear me and benefit from what I gleaned.” 
2. Bench the Ego. “The more I tried to exert power directly, the less powerful I became. I learned to dial back my ego and distribute power as widely as possible without surrendering final authority. Paradoxically, this approach strengthened my effectiveness because it freed me to focus on my job as keeper of the team’s vision. 
“Some coaches insist on having the last word, but I always tried to foster an environment in which everyone played a leadership role, from the most unschooled rookie to the veteran superstar. If your primary objective is to bring the team into a state of harmony and oneness, it doesn’t make sense for you to rigidly impose your authority.” 
3. Let Each Player Discover His Own Destiny. Jackson’s goal wasn’t to provide all of the answers. “I’ve always been interested in getting players to think for themselves so that they can make difficult decisions in the heat of battle.” 
“My approach was always to relate to each player as a whole person, not just a cog in the basketball machine. That meant pushing him to discover what distinct qualities he could bring to the game beyond taking shots and making passes. How much courage did he have? Or resilience? What about character under fire? Many players I’ve coached didn’t look special on paper, but in the process of creating a role for themselves they grew into formidable champions.” 
4. The Road to Freedom is a Beautiful System. Similar to the principles used to foster greater creativity and innovation in an organization, Jackson used a system known as the triangle offense. “What attracted me to the triangle was the way it empowers the players, offering each one a vital role to play as well as a high level of creativity within a clear, well-defined structure.” 
5. Turn the Mundane into the Sacred. Leaders take note. Jackson writes, “As I see it, my job as coach was to make something meaningful out of one of the most mundane activities on the planet: Playing pro basketball.” He incorporated meditation into his team’s practices. “I wanted to give players something besides X’s and O’s to focus on. What’s more, we often invented rituals of our own to infuse practices with a sense of the sacred.” 
6. One Breath = One Mind. Players “often have to make split-second decisions under enormous pressure. I discovered that when I had the players sit in silence, breathing together in sync, it helped align them on a nonverbal level far more effectively than words. One breath equals one mind.” 
“If you place too many restrictions on players, they’ll spend an inordinate amount of time trying to buck the system. Like all of us, they need a certain degree of structure in their lives, but they also require enough latitude to express themselves creatively.” 
7. The Key to Success is Compassion. “Now, ‘compassion’ is not a word often bandied about in locker rooms. But I’ve found that a few kind, thoughtful words can have a strong transformative effect on relationships, even with the toughest men in the room.” Compassion breaks down barriers among people. 
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