Jesse Livermore - Reminiscences of a Stock Operator

Jesse Livermore is one of the most well known traders of all time and his biography Reminiscences of a Stock Operator is a must read for all Traders.

First published in 1923, the book chronicles adventures of Livermore, who began trading at 14 with a $5 stake, as he made and lost several fortunes. His stature was such that he was often said to move markets and even was blamed for the stock market crash of 1929.

The Book contains many gems of wisdom.

A must read

p.s. I did post this before but the link wasn't working - sorry guys.

joeking323 said:

Jesse Livermore is one of the most well known traders of all time and his biography Reminiscences of a Stock Operator is a must read for all Traders.

First published in 1923, the book chronicles adventures of Livermore, who began trading at 14 with a $5 stake, as he made and lost several fortunes. His stature was such that he was often said to move markets and even was blamed for the stock market crash of 1929.

The Book contains many gems of wisdom and you can get a free copy by clicking the link below.

A must read

p.s. I did post this before but the link wasn't working - sorry guys.

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What you really want to do is find a copy of his Market Key and follow it. It will open your eyes to how far ahead of his time he really was. I believe he really did hold the key to the market in his hands and it's all in the numberes. Following it has been nothing short of mind blowing for me.

trader_dante said:

What you really want to do is find a copy of his Market Key and follow it. It will open your eyes to how far ahead of his time he really was. I believe he really did hold the key to the market in his hands and it's all in the numberes. Following it has been nothing short of mind blowing for me.

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Hi TD,

the only thing i could find was,

The Secret of Livermore: Analyzing the Market Key System by Andras, M Nagy (Author)


is this the book you was talking about?

minime69 said:

Hi TD,

the only thing i could find was,

The Secret of Livermore: Analyzing the Market Key System by Andras, M Nagy (Author)


is this the book you was talking about?

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No, look for "How To Trade In Stocks". This was written by Livermore himself. The Key should be at the back of it.

what is so special about it? What does it do?

MrGecko said:

what is so special about it? What does it do?

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I cannot reveal this.

why not?

trader_dante said:

No, look for "How To Trade In Stocks". This was written by Livermore himself. The Key should be at the back of it.

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i have found an online copy of the original. (and i mean literally photo copied and put on line)

thanks

minime69 said:

i have found an online copy of the original. (and i mean literally photo copied and put on line)

thanks

Click to expand...

Is this "market key" thing in it? Can you post a link?

MrGecko said:

Is this "market key" thing in it? Can you post a link?

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not the best e-book i have seen, but yes looks like it has the "market key" at the back.

Jesse Livermore - How To Trade In Stocks (Original 1940 Edition)

MrGecko said:

what is so special about it? What does it do?

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As a very basic overview:

It's essentially a form of technical analysis where Livermore records the magnitude of the main trend of a stock and then its retracement. From this he works out if the retracement is a normal correction or something more (like a reversal). If I remember rightly, he records the results of one stock in parallel with another from the same sector on the basis that if they both move in unison then all is well but if they diverge, that is an omen that something is wrong. Also, its tech analysis without charts - he just uses numbers.

On a side note, I always find it disturbing that his last wife, a women called Harriet, had previously been married 4 times. All four of her previous husbands commited suicide and so did JL once he was married to her!

just had a quick look... this would be pretty easy to automate, would it not?

MrGecko said:

just had a quick look... this would be pretty easy to automate, would it not?

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No, it cannot be automated.

JoeKing, if you are interested, followers of Livermores system would be watching US Crude right now, like a hawk.

It may give a signal to buy very soon.

trader_dante said:

What you really want to do is find a copy of his Market Key and follow it. It will open your eyes to how far ahead of his time he really was. I believe he really did hold the key to the market in his hands and it's all in the numberes. Following it has been nothing short of mind blowing for me.

Click to expand...

SOCRATES said:

The Reminscences of a Stock Operator does not actually reveal Jesse's methodology clearly.
It describes his accomplishments and setbacks but does not clearly describe his ultimate reasoning. This is because he was a very accomplished darksider, and did everything to protect his darkside methods from open public scrutiny. He talks about his "figuring" in the first chapter of the book. Later on he outlines how his trading room is set up, with the board boys working the results of the tape on a huge blackboard for him to observe progress, and all of this behind locked doors. There are many other clues as well, very artfully disguised. Later on he talks about the Livermore Key, but the Livermore Key is a red herring. If you are a true darksider the contents of the book just jump out at you as if you were yourself talking, instead of just being an informal textbook or just a thumping good read.

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:idea:

I don't believe the Key is a red herring. What basis did Socrates have to say that ffs!

lol

trader_dante said:

No, it cannot be automated.

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Why do you say that ?

I have just read through it and can't see anything in there that is beyond what can be coded, although admittedly it looks like it'd be a pain in the ass to do.

Is there something specific that you think can't be automated in there ?

pedro01 said:

Why do you say that ?

I have just read through it and can't see anything in there that is beyond what can be coded, although admittedly it looks like it'd be a pain in the ass to do.

Is there something specific that you think can't be automated in there ?

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Because the Key gives entry points only. It doesn't give additional entry points or exits.

For all elements: entry, additions and exits, his strategy also relied on numerous warning signals including such discretionary variables as "gut instinct" when prices were not behaving properly.

Anyone that thinks that the Key was a red herring clearly hasn't understood it. It's purpose is simply to indicate when the moves of importance are about to start and if the market is behaving as it should do if it is going to follow through with the trend. It's not a complete money making system!

The research I have done on the Key has been nothing short of inspiring. Following the Key allows you to use the numbers to picture the market mentally and it makes much more sense, at least to me, than a chart does. It's a bit like the clarity I imagine you would get from P&F charting.

I read Livermore say that he never failed to make money when he waited for one of his pivots. I always took this to be true but perhaps a slight exaggeration but since charting several stocks that fit his criteria and also some of the commodities markets e.g. Oil, I cannot find a time that the Key hasn't called a significant move.

I'm hoping I will because right now it's looking like the holy grail. And the holy grail is not something I believe in.

"How to trade in stocks" and "Reminiscences of a stock operator" are both must reads for any trader (of any level).

They are both books to come back to and re-read as well. I find something different in Reminiscences every time I read it.

According to the Livermore Market Key, Oil is a BUY at $39.10. However, it gets slightly complex because of the way that the futures market operate. If you update on a daily continuation basis, then the low is at $32.40 which means that $39.10 is not a buy and a physical signal has not been given other than to say that there is a mild expectation of higher prices. However some charts that have not been adjusted to reflect the old contract lows are showing that the bottom is at $35.59 which does make $39.10 a BUY.

Discretion is necessary. I am personally not trading it even though the last time it indicated an expectation of higher prices which was on the 31st December, the position went 703 ticks into profit.