“MARKETS
ARE NEVER WRONG - OPINIONS OFTEN ARE.” Jesse Livermore
I start today a serial about the most remarkable speculators
in the 20. century. This post is gonna be more personal, because this list is
only my list, Just contains my personal favourites, who effected me and to my
trading style mostly since beginning of my trading career.
All in all my best favorite speculator no doubt, is Jesse
Livermore. I’ve read everything from him and about him. He is my personal hero.
He was the most impressive and most profitable trader I’ve ever seen. Maybe
there are others, more profitable, but they are out of my horizon. Why is he my
Nr.1? Shortly his rules, strategies are as valid today as they were hundred
years ago. When first time I’ve read his most popular book about his life -
Edwin Lefèvre, Reminiscences of a Stock Operator, 1923.- that was a revelation to me. After that I
decided I want to be a trader for sure. This book tells us how nice job is our,
being everyday in the market, it is so fascinating. This book totally turned to
the markets. It is so amazing, if you do’nt know that was written almost 100
years ago in 1923, could be today either. What I learned that nothing new in
the markets, the human behaviour is constans on the floors. Everybody still
today greedy and scared as they were a century ago. There is nothing new.
His other book, J. Livermore, How To Trade In Stocks,
1940. - how weird - is not so popular as
the the first. But is this book he shares all his trading technics about money
management, how open and close positions…etc. Personally I learned the far the
most things about the markets and in my view this is the best book about how to
trade, and how to be profitable, I recommend this book to everyone, before go
any the market. From this book you can learn how not to lose money. And this is
the most important part of the trading on the market. The massage of this book
is this: “The game of speculation is the most uniformly fascinating game in the
world. But it is not a game for the stupid, the mentally lazy, the person of
inferior emotional balance, or the get-rich-quick adventurer. They will die
poor.”
He was legendary about his accuracy in terms of trading, he
noted all datas about the markets, and reviewed time by time. At the end of
each year he locked himself into a bank tresor, with foods, and drinks for
3-4days just to rescan which mistakes he made at that certain year and how he
can solve that mistakes and how can he learn from those failures and losses. He
studied closely all positions at that year.
During his life he gained and lost few multi-million dollar
fortunes. But all the times he learned from his faults, and this is the most
important personal attitude which needs have we being a good trader.
And he proved also to me the big rule - do’nt listen to
anyone. Livermore few times did’nt follow his own rules strictly and at those
cases he lost significant amounts.
Here you can find a
nice page, and there are some brilliant rules from the genious Livermore.
http://www.businessinsider.com/jesse-livermores-21-trading-rules-2013-2
So read Livermore and I can assure you, you gonna be much
better trader.
Our
daytrading workshop is on skype. Skype name: „Blindfoldedmonkey” or go to
http://about.me/blindfoldedmonkey
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