Jesse Livermore

Jesse Livermore is considered to be one of the greatest traders that ever lived, which might explain why Reminiscences of a Stock Operator is one of my favorite books & considered a must read for all traders.

Jesse keeps things simple, the key to most successes in life:

“Do not anticipate and move without market confirmation, being a little late in your trade is your insurance that you are right or wrong.”

“The good speculators always wait and have patience, waiting for the market to confirm their judgment.”

“Limit interest in too many stocks at one time. It is much easier to watch a few than many.”

“Experience has proved to me that the real money made in speculating has been: IN COMMITMENTS IN A STOCK OR COMMODITY SHOWING A PROFIT RIGHT FROM THE START.”

“As long as a stock is acting right, and the market is right, do not be in a hurry to take a profit. You know you are right, because if you were not, you would have no profit at all. Let it ride and ride along with it. It may grow into a very large profit, and as long as the “action of the market does not give you any cause to worry, have the courage of your convictions and stay with it.”

“It is foolhardy to make a second trade, if your first trade shows you a loss. Never average losses. Let that thought be written indelibly upon your mind.”

“One should never sell a stock, because it seems high-priced.”

“Profits always take care of themselves but losses never do. The speculator has to insure himself against considerable losses by taking the first small loss. In so doing, he keeps his account in order so that at some future time, when he has a constructive idea, he will be in a position to go into another deal, taking on the same amount of stock as he had when he was wrong.”

“It is significant that a large part of a market movement occurs in the last forty-eight hours of a play, and that is the most important time to be in it.”

“A speculator should make it a rule each time he closes out a successful deal to take one-half of his profits and lock this sum up in a safe deposit box. The only money that is ever taken out of Wall Street by speculators is the money they draw out of their accounts after closing a successful deal.”

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