A Mega-Thread on Jesse Livermore’s Wisdom: 1. Never be completely bearish or bullish on the whole market because of one group or a few stocks have reversed its course from the trend. (Would Appreciate a retweet as a lot of efforts are put by our team to compile these threads)
2. There is only one side of the market and it is not the bull or the bear, but the right side. 3. Don’t trust your own opinion and back your judgment until the action of the market itself confirms your opinion. 4. Markets are Never wrong – opinions often are.
5. The real money made in speculating has been in commitments showing in profit right from the start. 6. As long as a stock is acting right, and the market is right, do not be in a hurry to take profits. 7. One should never permit speculative ventures to run into investments.
8. The money lost by speculation alone is small compared with the sums lost by investors who let their investments ride. 9. Nothing new ever occurs in the business of speculating or investing in securities and commodities. 10. Never sell a stock because it seems high-priced.
11. I become a buyer as soon as a stock makes a new high on its movement after having had a normal reaction. 12. Watch the market leaders. 13. The human side of every person is the greatest enemy of the average investor or speculator. 14. Wishful thinking must be banished.
15. Big movements take time to develop. 16. It is not good to be too curious about all the reasons behind price movements. 17. It is much easier to watch a few than many.
18. If you cannot make money out of the leading active issues, you are not going to make money out of the stock market as a whole. 19. The leaders of today may not be the leaders of two years from now.
20. What has happened in the past will happen again. This is because Markets are driven by humans and human nature never changes. 21. “It is what people did in the stock market that counts — not what they said they were going to do.”
22. “Successful trading is always an emotional battle for the speculator, not an intelligent battle.” 23. “I believe the public wants to be led, to be instructed, to be told what to do.”
24. “If you can’t sleep at night because of your stock position, then you have gone too far.” 25. “Remember that stocks are never too high for you to begin buying or too low to begin selling.”
26. Not taking the loss, that is what does damage to the pocketbook and to the soul.” 27. “I trade my own information and follow my own methods.”
28. “I trade my own information and follow my own methods. 29. Being a little late in a trade is insurance that your opinion is correct. 30. Never average losses.
31. Don’t try to play the market all the time. 32. Trade along the path of least resistance. 33. Ride the trend until it ends.
34. Few people ever make money on tips. If there was easy money lying around, no one would be forcing it in your pocket. 35. The nature of the game as it is played is such that the public should realize that the truth cannot be told by the few who know.
36. A man must know himself thoroughly if he is going to be a speculator. To know what I was capable of in the line of folly was a long educational step. I think that no price is too high for a speculator to pay to learn that which will keep him from getting a swelled head.
37. Never buy a stock because it has had a big decline from its previous high. 38. Profits will always take care of themselves but losses never do.
39. Set your own rules and stick to them; never argue with the market; never make a play you can’t afford; never give way to irrational exuberance. Above all, don’t be a sucker. 40. Money cannot consistently be made trading every day or every week during the year.
