No. of Recommendations: 6
Hello all great board you have here.

Thought I would cross post my review here as well.

Thank you INHIM for posting link to this book on the net.

Pretty interesting, those were some very different/interesting times. Also noted how somethings never change.

He made millions and went broke too many times for my taste.
Livermore's trading style in a nut shell.

Assess the market for direction never trade against the market.

Wait for conditions to be right and don't enter too soon.

Tip toe into market, if original position show profits start adding to it. He would probe the market with orders to see how easily they would be taken up and entering with 20% at a time.

Only trade after a position has moved out of its trading range.

Take profits on the way down from the peak.
Livermore quotes.

What beat
me was not having brains enough to stick to my own game -- that
is, to play the market only when I was satisfied that precedents
favored my play. There is a time for all things, but I didn't
know it. And that is precisely what beats so many men in Wall
Street who are very far from being in the main sucker class.
There is the plain fool, who does the wrong thing at all times
everywhere, but there is the Wall Street fool, who thinks he
must trade all the time. No man can always have adequate reasons
for buying or selling stocks daily or sufficient knowledge to
make his. play an intelligent play.
It takes a man a long time to learn all the lessons of all
his mistakes. They say there are two sides to everything. But
there is only one side to the stock market; and it is not the
bull side or the bear side, but the right side. It took me
longer to get that general principle fixed firmly in my mind
than it did most of the more technical phases of the game of
stock speculation.
Always sell what shows you
a loss and keep what shows you a profit. That was so obviously
the wise thing to do and was so well known to me that even now I
marvel at myself for doing the reverse.
the investor Imperial Steel therefore remained a speculation. To
the speculator it was a dead one -- the kind that makes an
investor of you against your will by the simple expedient of
falling into a trance the moment you go long of it. The chap who
is compelled to lug a corpse a year or two always loses more
than the original cost of the deceased; he is sure to find
himself tied up with it when some really good things come his
General wisdom is less valuable than specific savvy.
The speculator's deadly enemies are: Ignorance, greed, fear
and hope. All the statute books in the world and all the rules
of all the Exchanges on earth cannot eliminate these from the
human animal. Accidents which knock carefully conceived plans
sky high also are beyond regulation by bodies of cold blooded
economists or warm-hearted philanthropists. There remains
another source of loss and that is, deliberate misinformation as
distinguished from straight tips. And because it is apt to come
to a stock trader variously disguised and camouflaged, it is the
more insidious and dangerous.
It is a case of the Wall Street philanthropist operating
again, but the wise trader bewares of the Greeks bearing gifts.
good trades,
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.