Archives of “Jesse Lauriston Livermore” tag

rss

10 One Liners From Bernard Baruch

  
  Education
#  #  #  #  #  #  #  #

From the SAME AS IT EVER WAS file: Bernard Baruch, a colleague and friend of Jesse Livermore’s, who made a fortune shorting the 1929 crash, and then who later advised presidents Woodrow Wilson and Franklin D. Roosevelt on economic matters, listed the following investment rules in his autobiography published in 1958 entitled Baruch: My Own Story.  These rules are still as applicable today.


1.  Don’t speculate unless you can make it a full-time job.
2.  Beware of barbers, beauticians, waiters–of anyone–bringing gifts of “inside” information or “tips.”
3.  Before you buy a security, find out everything you can about the company, its management and competitors, its earnings and possibilities for growth.
4.  Don’t try to buy at the bottom and sell at the top.  This can’t be done–except by liars.
5.  Learn how to take your losses quickly and cleanly.  Don’t expect to be right all the time.  If you have made a mistake, cut your losses as quickly as possible.
6.  Don’t buy too many different securities.  Better have only a few investments which can be watched.
7.  Make a periodic reappraisal of all your investments to see whether changing developments have altered their prospects.
8.  Study your tax position to know when you can sell to greatest advantage.
9.  Always keep a good part of your capital in a cash reserve.  Never invest all your funds.
10.  Don’t try to be a jack of all investments.  Stick to the field you know best.

 

25-One Liners for Traders (Read and Understand ) -Anirudh Sethi

  
Analysis, Education
#  #  #  #  #  #  #  #  #  #
  1.  If you need to spend your money in a relatively short period of time it doesn’t belong in the stock market.
  2.  If you want to earn higher returns you’re going to have to take more risk.
  3.  If you want more stability you’re going to have to accept lower returns.
  4.  The stock market goes up and down.
  5.  If you want to hedge against stock market risk the easiest thing to do is hold more cash.
  6.  Risk can change shape or form but it never really goes away.
  7.  No Trader is right all the time.
  8.  No  Trading strategy can outperform at all times.
  9.  Almost any Trader can outperform for a short period of time.
  10.  Size is the enemy of outperformance.
  11.  Brilliance doesn’t always translate into better Trading results.
  12.  “I don’t know” is almost always the correct answer when someone asks you what’s going to happen in the markets.
  13.  Watching your friends get rich makes it difficult to stick with a sound Trading plan.
  14.  Day trading is hard.
  15.  Outperforming the market is hard (but that doesn’t mean it’s impossible).
  16.  There is no signal known to man that can consistently get you out right before the market falls and get you back in right before it rises again.
  17.  Most backtests work better on a spreadsheet than in the real world because of competition, taxes, transaction costs and the fact that you can’t backtest your emotions.
  18.  It’s almost impossible to tell if you’re being disciplined or irrational by holding on when your investment strategy is underperforming.
  19.  Reasonable investment advice doesn’t really change all that much but most of the time people don’t want to hear reasonable investment advice.
  20.  Successful  Trading is more about behavior and temperament than IQ or education.
  21.  Don’t be surprised when we have bear markets or recessions. Everything is cyclical.
  22.  You are not George Soros or Jesse Livermore
  23.  The market doesn’t care how you feel about a stock or what price you paid for it.
  24.  The market doesn’t owe you high returns just because you need them.
  25.  Predicting the future is hard.

Jesse Livermore – A Great Trader?

  
  Education
#  #  #  #
  1 Comments

There are however, significant question marks over Jesse Livermore’s trading record. He bankrupted himself more than once during his career. Then, having made one of the biggest inflation adjusted stock-market coups in history shorting the markets in 1929, he had lost it all by 1934.

Reasonable observers – for the sake of argument I shall include myself in this group – would not try to claim that Livermore was a flawless trader. Livermore is, however, remembered, while most of his trading contemporaries are long forgotten.

Livermore’s continuing fame arises from several significant factors:

  • Livermore was a skilled reader of the now defunct ticker tape. In more modern terms, we would say that he was skilled in using price/volume data to predict where a stock’s price was heading.
  • Not only did he read the tape successfully, amazingly he told the public how he did it. Trading concepts that we now call support, resistance and momentum can be clearly identified from Livermore’s work.
  • The idea of giving up the day job and making a living on the markets is as attractive now as it was in Livermore’s day.
  • Livermore stayed in the public eye when, in 1935, following a drunken argument, his ex-wife shot and injured Livermore’s oldest son Jesse Jr.
  • Livermore successfully sold the idea to small time traders that they should ride their winners and sell their losers. Although many of them failed to heed his advice for psychological reasons (and continue to fail today, for the same reasons,) even the least educated of today’s traders are aware of this powerful method.
  • Livermore lost one of the largest personal fortunes in history. Everything he had taken from the stock-market, he gave back. In the end, just like the bit-players, he failed to obey his own favorite rule – sell your losing trades.

Despite the question marks over his career, even today a trader can make money in the markets using Livermore’s methods. More recent trading gurus – such as Martin Zweig and Alexander Elder – owe a debt to Jesse Livermore for the methods they either use or publicize. There is no other figure in the history of the markets whose methods continue to figure so strongly in market trading than Jesse Livermore’s.

Learn from Jesse Livermore's personal life than from his trading techniques :Jesse Livermore Boy Plunger

  
Analysis, Education
#  #  #  #  #  #  #  #  #  #  #

1929-crash

Jesse Livermore, the so called “Boy Plunger” and probably the greatest Wall Street Trader who ever lived, died $340,000 in debt.

Many look at his life to learn the secrets of his often extraordinary trading success. A better track for financial prosperity is to study and learn from mistakes he committed in his personal life.

The clues for true riches can be found there. The lessons from his personal failures are exponentially more important for modern investors than his exploits in the commodities and stock markets.

During the Stock Market Crash of 1929, Jesse Livermore made $100 million dollars betting that the stock market would plummet in spectacular fashion.

When he arrived home after another appalling day of market bloodletting in October of 1929, both his wife and mother-in-law met him at the door in tears. (more…)

11 One Liners for Traders

  
  Education
#  #  #  #  #  #  #
  • Buy from the scared, sell to the greedy.
  • Buy their pain, not their gain.
  • Successful traders are quick to change their minds and have little pride of opinion.
  • I made my money because I always got out too soon. (Bernard Baruch)
  • Don’t try to buy at the bottom and sell at the top. It can’t be done except by liars. (Bernard Baruch)
  • Throughout all my years of investing I’ve found that the big money was never made in the buying or the selling. The big money was made in the waiting. (Jesse Livermore)
  • The faster a stock has climbed, the quicker it will fall.
  • The more certain the crowd is, the surer it is to be wrong. (Menschel)
  • Bear markets begin in good times. Bull markets begin in bad times
  • Never confuse genius with a bull market.
  • Always sell what shows you a loss and keep what shows you a profit

Admit when you're wrong… and profit

  
  Education
#  #  #  #

In trading, it’s best to quickly admit when you’re wrong.  If you can keep your losses to a minimum, you will be able to preserve your trading capital (along with your mental capital) and improve your odds of profiting from future opportunities. As Jesse Livermore once said, “I have long since learned, as all should learn, not to make excuses when wrong. Just admit it and try to profit from it.” 
JL-QUOTE

10 Foolish Ways to Lose Money in Bull Markets

  
  Education
#  #  #  #  #  #  #

” There is only one side of the market and it is not the bull side or the bearside, but the right side.” – Jesse Livermore10-number-

  1. Be a bear in a bull market.
  2. Keep shorting a bull market and see what happens. LOSSES.
  3. Wait for a deep pull back that never comes as the market goes higher and higher each day. Then chase at the end of the move.
  4. Buy puts and sell them for a loss over and over.
  5. Keep betting on a market meltdown as the indexes make all time highs over and over again.
  6. Buy ABC ,XYZ  and see what happens. LOSSES.
  7. If your trading plan is the “the market just can’t go higher” you’re going to have a bad time.
  8. Short in the hole right at resistance. The bounces are brutal.
  9. Have a bearish opinion, keep a bearish opinion, trade a bearish opinion.

  10. Being a stubborn perma-bull instead of a flexible trader.

Go to top