Traders who are dishonest, don't give trading position in real-time & post their trading success off-line, who listen & blame others for their losses should read on.........
Reminiscences of a Stock Operator - By Jesse Lauriston Livermore
During his lifetime, Livermore gained and lost several multi-million dollar fortunes. Most notably, he was worth $3 million and $100 million after the 1907 and 1929 market crashes, respectively. He subsequently lost both fortunes.
During the flat markets from 1908 to 1912, Jesse Livermore managed to lose 90% of the money he had earned in the 1907 Panic and was forced to declare bankruptcy. TRADERS LOOSE MORE THAN THEY MAKE IN FLAT MARKET.
Livermore sometimes did not follow his own money-management rules strictly. He claimed that his lack of adherence to his own rules was the main reason for his losses after making his 1907 and 1929 fortunes.
"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 man of inferior emotional balance, or for the get-rich-quick adventurer. They will die poor."
"...the fruits of your success will be in direct ratio to the honesty and sincerity of your own effort in keeping your own records, doing your own thinking, and reaching your own conclusions."
FOLLOWING IS THE MESSAGE FOR INTRA-DAY TRADERS
"There are times when money can be made investing and speculating in stocks, but money cannot consistently be made trading every day or every week during the year. Only the foolhardy will try it. It just is not in the cards and cannot be done."
"The point is not so much to buy as cheap as possible or go short at top price, but to buy or sell at the right time."
"I am tired of hearing the public and papers blame Wall Street for parting fools from their money... It's the successful business man who is the biggest sucker of the lot. He has made a fortune in his own line. How? By being on the job for years; by learning all there was to know about it; by taking reasonable chances; by utilizing his knowledge and experience to anticipate probabilities. He wants to increase that fortune at a faster rate and with less effort."
"It took me five years to learn to play the game intelligently enough to make big money when I was right."
"Speculation is far too exciting. Most people who speculate hound the brokerage offices... the ticker is always on their minds. They are so engrossed with the minor ups and downs, they miss the big movements."
Livermore ends his book with a repetition of his earlier statement that no one can consistently and continuously beat the stock market, though he may make money in individual stocks on certain occasions. “No matter how experienced a trader is the possibility of his making losing plays is always present because speculation cannot be made 100 % safe,” he cautioned. “Wall Street professionals know that acting on ‘inside’ tips will break a man more quickly than famine, pestilence, crop failures, political readjustments or what might be called normal accidents.”
Losing, according to Livermore, was painful but it was a lesson he had to learn. “When you know what not to do, then you know what to do to win.”
He also adds that traders cannot learn a lot from winners because they take care of their traders. The losers, on the other hand, can teach new traders lessons that they will remember for a lifetime. He reminds traders to always be on their guard and control their emotions, especially fear and greed – because giving in to these two can make them trade without thinking and lose money.
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September 9, 2011 1:23:45 PM
Top Contributor (1000+ Posts, 200+ Likes)
Navfame- Book profit, give party and also if you want contact stock trader and help him, otherwise he will be burden with 20%+ fine, penalty etc + it also depends on the CMP on tomorrow since auction will be tomorrow
Hello All Yesterday I shorted for this stock but unfortunately I wasn't able to square off this position on time if anyone want to sell 200 shares offline to me please contact me at koushalgoyal@yahoo.com I need 200 shares to be transferred to my account for squaring off this position