Reminiscences Of A Stock Operator - Famous Quotes To Incorporate In Your Trading
I introduced Jesse Livermore and 2 of his quotes based on his trading experience in a post last week:
The 2 quotes had the theme of being patient and waiting for the price of Steem to show you it wanted to move higher. For those that don't know about Jesse Livermore and some of his great trading quotes we should use in our own trading, please continue to read on.
Reminiscences of a Stock Operator, by Edwin Lefevre, is about the life and times of Jesse Livermore, a stock and commodities speculator from the turn of the last century.
Jesse Lauriston Livermore was born on July 26, 1877, and started his trading career at the age of 14 as a “chalk boy”, posting quotes for stocks at a brokerage in Boston. It was in this job that he learned to trade, and over his long career he traded both up and down markets including the panic of 1907 and the 1929 stock market crash, making (and losing) many millions of dollars. Jesse lived until the age of 63, passing away on November 28, 1940.
The book guides the reader to discover nuggets of wisdom. He made a million-dollars during his twenties and lose a million dollars several times between 1901 and 1921. This book has been considered one of the investment classics. This book is a chronicle of sound stock trading advice. I would like to share some of this advice and wisdom through quotes throughout the book:
“Don’t take action with a trader until the market, itself, confirms your opinion. Being a little late in a trade is insurance that your opinion is correct. In other words, don’t be an impatient trader.”
"To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.”
“The desire for constant action irrespective of underlying conditions is responsible for many losses on Wall Street even among the professionals.”
“After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!”
“Experience has proved to me that real money made in speculating has been in commitments in a stock or commodity showing a profit right from the start.”
“In a narrow market, when prices are not getting anywhere to speak of but move within a narrow range, there is no sense in trying to anticipate what the next big movement is going to be. The thing to do is to watch the market, read the tape to determine the limits of the get nowhere prices, and make up your mind that you will not take an interest until the prices breaks through the limit in either direction.”
“The desire for constant action irrespective of underlying conditions is responsible for many losses on Wall Street even among the professionals,."
“Losing money is the least of my troubles. A loss never troubles me after I take it. I forget it overnight. But being wrong – not taking the loss – that is what does the damage to the pocket book and to the soul.”
“If you can’t sleep at night because of your stock market position, then you have gone too far. If this is the case, then sell your position down to the sleeping level.”
“One of the most helpful things that anybody can learn is to give up trying to catch the last eighth – or the first. These two are the most expensive eighths in the world. They have cost stock traders, in the aggregate, enough millions of dollars to build a concrete highway across the continent.”
“People who look for easy money invariable pay for the privilege of proving conclusively that it cannot be found on this earth.”
“It is what people actually did in the stock market that counted – not what they said they were going to do.”
Other books about the life of Jesse Livermore include:
• 1923 – Reminiscences of a Stock Operator by Edwin Lefèvre
• 1985 – Jesse Livermore – Speculator King by Paul Sarnoff
• 2001 – Jesse Livermore: The World's Greatest Stock Trader by Richard Smitten
• 2001 – How To Trade In Stocks by Jesse Livermore
• 2003 – Speculation as a Fine Art by Dickson G. Watts
• 2004 – Trade Like Jesse Livermore by Richard Smitten
• 2004 – Lessons from the Greatest Stock Traders of All Time, by John Boik
• 2006 – How Legendary Traders Made Millions, by John Boik
• 2007 – The Secret of Livermore: Analyzing the Market Key System., by Andras Nagy
• 2014 – Jesse Livermore - Boy Plunger., by Tom Rubython,
but I'm bias to Reminiscences of a Stock Operator by Edwin Lefèvre. If you find yourself struggling at time, you might be interested the following post as well:
I read this on my phone many days ago - but I wanted to let you know I really enjoyed this - like a lot. Thanks for it...Some really good gold here.
I haven't read any of the books option - so again, thank you.
I'm glad you enjoyed it. It's my pleasure to share my experiences with you and the rest of the Community.