Bear Market

13 Pages 3127 Words

“It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I've known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level which should show the greatest profit. And their experience invariably matched mine - that is, they made no real money out of it. Men who can both be right and sit tight are uncommon.” – Legendary speculator Jesse Livermore, “Reminiscences of a Stock Operator” by Edwin Lefevre, 1923

Edwin Lefevre’s famous “Reminiscences of a Stock Operator” book, a thinly disguised biography of legendary speculator Jesse Livermore in the early 20th century, is required reading for every serious speculator and trader. Lefevre’s masterpiece documents the incredible life of Jesse Livermore and is chock full of amazing market wisdom gleaned through Livermore’s hard-won life lessons learned by winning and losing real money.

“Worth” magazine once called Lefevre’s 1923 book one of the four greatest investment classics of all time. It is one of the ultimate books for speculators to absorb and digest, as Livermore’s experiences and candid observations about the markets are totally timeless and will always apply as long as men engage in speculation.

I have read “Reminiscences” maybe a half-dozen times in my life, and each time I immerse myself in the incredible world of Jesse Livermore I emerge with a deeper and more fundamental understanding of markets and speculation. I cannot recommend it highly enough!

Jesse Livermore started trading in the “bucket shops” (read the book) of early 20th century America at the tender age of 15. He became so adept at trading that he was kicked out by the bucket shop owners (who were on the losing sides of his t...