Monday, February 24, 2014

10 GREAT JESSE LIVERMORE QUOTES

The quotes are picked up from here. They were sent to me by a budding trader, who seems to have a passion for the markets. I advised him: do not trade, just learn. He is now a learner.

1) The stock market is never obvious. It is designed to fool most of the people, most of the time.

2) Play the market only when all factors are in your favor. No person can play the market all the time and win. There are times when you should be completely out of the market, for emotional as well as economic reasons.

3) Do not use the words “Bullish” or “Bearish.” These words fix a firm market-direction in the mind for an extended period of time. Instead, use “Upward Trend” and “Downward Trend” when asked the direction you think the market is headed. Simply say: “The line of least resistance is either upward or downward at this time.” Remember, don’t fight the tape!

4) 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.

5) The only thing to do when a person is wrong is to be right, by ceasing to be wrong. Cut your losses quickly, without hesitation. Don’t waste time. When a stock moves below a mental-stop, sell it immediately.

6) Emotional control is the most essential factor in playing the market. Never lose control of your emotions when the market moves against you. Don’t get too confident over your wins or too despondent over your losses.

7) All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis.

8) Watch the market leaders, the stocks that have led the charge upward in a bull market. That is where the action is and where the money is to be made. As the leaders go, so goes the entire market. If you cannot make money in the leaders, you are not going to make money in the stock market. Watching the leaders keeps your universe of stocks limited, focused, and more easily controlled.

9) Failure to take advantage of a serendipitous act of good luck in the stock market is often a mistake.

10) There is nothing new on Wall Street or in stock speculation. What has happened in the past will happen again, and again, and again. This is because human nature does not change, and it is human emotion, solidly build into human nature, that always gets in the way of human intelligence. Of this I am sure.
Notes from the learner:
The 4th point discussed in these points is the most perfect lines which impressed me the most. He clearly uses the word GAME for trading, which impresses me a lot. Making trades by setting a complete setup will become like a game, and i think if we trade like we are playing a speculation game instead of trading, then we can take away our emotions easily from trading, which is very important for successful trading.

1 comment:

Rahul Ahlawat said...

__ Jesse [Lauriston] Livermore (July 26, 1877 – November 28, 1940), also known as the Boy Plunger and "Great Bear of Wall Street", was an American stock trader. He was famed for making and losing several multi-million dollar fortunes .

* Remainnances of a Stock Operator:

(1) The game of speculation is the most 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.

(2) The stock market is never obvious. It is designed to fool most of the people, most of the time.

(3) Play the market only when all factors are in your favor. No person can play the market all the time and win.
There are times when you should be completely out of the market, for emotional as well as economic reasons.
There is something called a No-Trade Zone and you must respect it.
(4) Never argue with the tape!
It took me 5 years to play the game intelligently enough to
make big money when I was right.

(5) The only thing to do when a person is wrong is to be right, by ceasing to be wrong.
Cut your losses quickly, without hesitation. Don’t waste time.
When a stock moves below a mental-stop, sell it immediately.

(6) Emotional control is the most essential factor in playing the market.
There are only 2 emotions in the market—hope & fear—the only problem is
you hope when you should fear & fear when you should hope.
Know yourself and provide against your own weaknesses.

(7) There is nothing new on Wall Street. Whatever happens in the stock market today
has happened before and will happen again. History repeats itself.
This is because human nature does not change. and it is human emotion, solidly build into human nature, that always
gets in the way of human intelligence. Of this I am sure.
That is why the numerical formations and patterns recur on a constant basis.
What has happened in the past will happen again, and again, and again.

(8) There is nothing like losing, for teaching you, what not to do.
And when you know what not to do in order not to lose money,
you begin to learn what to do in order to win.

(9) As the leaders go, so goes the entire market. If you cannot make money in the leaders,
you are not going to make money in the stock market.

(10) The point is not so much to buy as cheap as possible or
go short at top price, but to buy at the right time.

(11) The big money is made by sitting, not thinking.
Men who can both be right and sit tight, are uncommon.

(12) A chart helps those who can read it, or rather who can assimilate what they read.

(13) The Sucker play is always the same : To make easy money. He thinks his margin will take the place of brains, vision, knowledge, experience and of intelligent self-surgery.
Whether the stock market goes his way or against him, his hope is always fighting his judgement -----
his hope of gaining more that keeps him from taking his profits when he should;
his hope of losing less that keeps him from taking a relatively small loss.
It is a human failing !
The foxiest of all stock market operators could’nt bear the mere thought of a loss.
Imagine the average sucker !!
(14) There is never a dull moment in the market nor is there a lack of new
speculators trying to make a living.

For what Jesse Livermore does , is not to gamble or speculate, in the sense in which we use ‘speculation’----i.e,
the continuous practise of buying and selling stocks in expectation of a profitable change in value.
He does what all successful merchants and manufactures and prize fight promoters and pioneers do :
He anticipates probabilities.And that is not a mere euphamism for gambling.
It connotes a vital difference.

(15) It is literally true that millions come easier to a trader after he knows how to trade,than hundreds did,
in the days of his ignorance. The reason is that-----
“ a man may see straight and
clearly and yet become impatient
or doubtful when the market
takes its time about doing as he
figured it must do.”