Jesse Livermore's Wisdom Part 1

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Jesse Livermore had more than just a reputation. He was a gifted man whose rare talents were busily employed for one unyielding purpose: the exciting business of speculation (profits from price changes).

In the next few lines we have selected a bit of his timeless wisdom about trading and speculation. We hope you enjoy it.

It is what people actually did in the stock market that counted – not what they said they were going to do. 

The only way you get a real education in the market is to invest cash, track your trade, and study your mistakes…"

Take your losses quickly and don’t brood about them. Try to learn from them but mistakes are as inevitable as death. And only make a big move, a real big plunge, when a majority of factors are in your favor….every once in a while you must go to cash, take a break, take a vacation. Don’t try to play the market all the time. It can’t be done, too tough on the emotions.

Prudent speculators never argue with the tape. Markets are never wrong, but opinions often are.

Stay tuned for Part 2