My Favorite Jesse Livermore Quote:

[the hare]

"There is nothing like losing all you have in the world for teaching you what not to do. And when you learn what not to do in order not to lose money, you begin to learn what to do in order to win. Did you get that? You begin to learn!"

Of course, some people never learn

 

[TheBramble]

This is sooo useful....Yes! Begin to learn! Yessir!!!!

Pity that Jesse didn't learn what he was suggesting you could learn from that event as he managed to foregt it a few times himself..permanently eventually.

Doh!

Why do people quote this s hit? He blew his brains out as poor as a leper and bods still quote him as some fuggin guru on how to do it right.

 

[TheBramble]

Bunny, I hope your new thread (is that going to start soon?) which covers your techniques and experience doesn’t lean too heavily on Livermore as I suspect the willingness to blow ones brains out as a solution to s hit trading will not sit well with the majority, however much we feel it is appropriate for some of out furry critter friends.

 

[andycon]

I thought "reminiscence of stock operator" was a must read for all traders, particularly new traders because it was a classic example of how not to trade. JL was clearly a gambler and maybe a very lucky or successful one at times. Trying to separate exits and money management from entrys in trading is about as absurd as saying a darts player is great at darts except for doubles.

What would you rather be; trader "A" whole nails every top or bottom but due to poor exits or MM ends the day/week/month/lifetime down, or trader "B" who has a system that has a hit rate of 55/45 but ends every day/week/month/lifetime in profit.

If you choose "A" you are a gambler, if you choose "B" you either are or may become a very successful trader.

Livermore was a gambler.

 

[TheBramble]

andycon - it's OK to lose as long as you lose big - and then blow your brains out. Macho stuff. Ra Rah!!!

However, call me boring, but trading for me has always been about making money, keeping it and living long enough to spend it. All.

Reminiscences - of a Loser.

If I want to model a suicidal depressive, Jesse would be my man.

 

[andycon]

If we are talking quotes the best must be "You have to know when to hold them, know when to fold them, know when to walk away, and know when to run" The Gambler.

A quote that is really talking about taking the gambling out of gambling, a good poker player as a good trader knows this through a good understanding of probability, risk reward and mostly MM and position sizing.

Anyone who has JL as an idol because of his tape reading skill, or what he made and subsequently lost is just looking to validate there gambling dream.

Another great quote is "don't wear your wellies in bed" Andycon 2011

 

[sighthound]

Baaa,Baaa,Baaa

 

[the hare]

Bunny, I hope your new thread (is that going to start soon?) which covers your techniques and experience doesn’t lean too heavily on Livermore as I suspect the willingness to blow ones brains out as a solution to s hit trading will not sit well with the majority, however much we feel it is appropriate for some of out furry critter friends.

The reason why my system (or indeed anyone's system) works is exactly the same reason for Jesse's success, although Jesse would never admit it.

 

[TheBramble]

Jesse's success,

?

We obviously haven't different measures of success.

 

[the hare]

We obviously haven't different measures of success.

Thats true, we probably do.

 

[trader_dante]

My opinion: An incredible trader. A terrible money manager.

The fact of the matter is, he went "all in" too many times.

But consider Buffet. Buffet has kept his fortune. Did Buffet take big risks? In 1963, when AE plunged 50% almost overnight, he put 40% of his total partnerships assets on the line buying the stock. That's not exactly the pinnacle of conservatism.

Fact of the matter is, you don't get where these guys are without taking big risks. But as we all know, for everyone that becomes "famous" there will be thousands that lose it all.

Livermore probably pushed it too hard too many times and eventually he blew out. Do that enough times and get old enough and coming back seemed an insurmountable task. Trading was his life and in his late 60's with the new SEC regulations, starting at nothing was just too much. Combine that with clinical depression...

 

[safvan]

Fact of the matter is, you don't get where these guys are without taking big risks.

Could not have summed it better. Big money in any industry involves taking big risk and in this business thats exactly how it works.

You make big money by risking more when you are right and losing more when you are wrong. You make less money by risking less when you are right and losing less when you are wrong.