"Reminiscences of a Stock Operator" is a must-read book written by Edwin Lefèvre on the real-life experiences of "Jesse Livermore", a legendary stock trader who made and lost several fortunes during the late 19th and early 20th centuries.
A thread about the learnings 🧵
A thread about the learnings 🧵
•At an early age, Livermore worked as a "board boy" at a Boston brokerage company to start his career as a stock trader.
•He picked up the stock market's nuances fast and achieved his first significant gain by betting against the market during a panicky period of the economy.
•He picked up the stock market's nuances fast and achieved his first significant gain by betting against the market during a panicky period of the economy.
•He created a set of principles and techniques that he used when trading.
•He promoted the idea of always having a plan and promoted the value of discipline and risk management.
•He emphasized the value of playing the long game rather than trying to make immediate money.
•He promoted the idea of always having a plan and promoted the value of discipline and risk management.
•He emphasized the value of playing the long game rather than trying to make immediate money.
•Throughout his career, Livermore saw numerous examples of people or groups attempting to manipulate the stock market for their own gain. He discovered the value of being watchful and avoided being influenced by manipulators.
•He believed that trading required a combination of analysis, intuition, and experience.
•He created his own techniques for market analysis, which included observing the behavior of certain stocks and the general market trend.
•He also underlined the value of patience.
•He created his own techniques for market analysis, which included observing the behavior of certain stocks and the general market trend.
•He also underlined the value of patience.
•In trading, emotions play a crucial part, and Livermore understood the risks of letting them rule one's actions.
•He advised traders to not let greed or fear influence their decisions.
•He advised taking breaks and avoiding the market during periods of extreme volatility.
•He advised traders to not let greed or fear influence their decisions.
•He advised taking breaks and avoiding the market during periods of extreme volatility.
•The market is continuously changing, thus Livermore recommended traders in the final chapter to never stop learning.
•He also stresses how crucial it is to be adaptable in one's trading strategy and react to change.
End.
•He also stresses how crucial it is to be adaptable in one's trading strategy and react to change.
End.
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