Jesse Livermore was a day trader who made a fortune during the Great Depression. At that time, he placed a large short position on various assets using hundreds of stockbrokers and made more than $100 million when the market crashed.
In this article we will look at One of his most famous quotes:
The game taught me the game. And you did not rot me from the stick while teaching.
– Jesse Livermore
The challenge of day trading
Trading can be a very fun and profitable process. In fact, thousands of people, including James Simmons, have made a fortune off of it. At the same time, It can be a punishing industrywhere one transaction can lead to huge losses.
For example, a few years ago, after much success, Two investments In Herbalife and Valeant Pharmaceuticals, He threatened Bill Ackman’s hedge fund. He has lost over $5 billion in that time.
Similarly, many trades threatened Jesse Livermore career. For example, a series of deals forced him to file for bankruptcy in 1908 and 1915. So, in many cases, dealers go through what is known as Baptism by fire.
Therefore, it is imperative that you do so Follow the right process when starting your trading journey. This process involves going through a lot of markets educationAnd the learning and exercise Risk Management Strategies, own trading strategy.
The first stage of becoming a good trader is Focus on trading education. Here, you should focus on reading booksWatch videosand attendance Seminars in the financial market. You can also decide to take specialized coursesbeing careful not to be looted.
Taking the time to study this material will help Understand how the market works And the best strategies are used by experienced people.
Books – still a viable option
There are hundreds of books on the financial market that are worth reading. The best place to start is to buy Jesse Livermore’s book, How to trade stocks. The paperback version goes for just $5.88 on Amazon while the Kindle version costs just $3. While the book was written in the 1940s, it contains excellent advice that applies to this day!
Some of the best quotes in the book:
“The game of speculation is the most uniformly wonderful game in the world. But it is not a game for the stupid, or the mentally lazy, or the person of low emotional balance, or the get-rich-quick adventurer. They will die poor.”
You can also read books about Livermore such as Stock player memories And the Jesse Livermore – The King of Speculators.
Reading will open your mind about how the financial market works and how to spot opportunities. It will also guide you how to do it Discover opportunities and How Allocate and protect your capital.
Related “ Evergreen Lessons from Jesse Livermore
Another good place to start is Watching experienced traders do their job. At DTTW™, we run TraderTVwhich is a popular YouTube channel where our experienced traders do it.
In the live trading session, you will see how professional traders trade, how they allocate their money and how they deal with losses.
Create a trading strategy
When you read these materials and watch the trading videos, you will get started forming ideas in your imagination about the best strategy to use.
Some of the best trading strategies that people use are: Follow the trendAnd the direction reversalsAnd the speculationAnd the pairs tradingAnd the Dollar cost average (DCA), And the swing trading.
A good trading strategy should be easy to understand and implement. It should also not expose the trader to significant market risks.
A beginner’s best friend: the demo account
The best way to create a strategy is to use a demo account, which most online brokers provide. This offer will enable you to do just that Live market experience without risking your money.
To that end, we’ve also put together some helpful tips that you can follow to make your practice more effective.
Should Spend a few months on a demo Ensure that your strategy works in all market conditions. People who rush from a demo account to a real account tend to lose money.
The transition from paper trading to real accounts is often fraught with pitfalls. That’s why we thought you might like this guide to switching from the demo platform to the trading software.
Jump right in and start trading
The final stage is where you are Add money to your trading account and start trading. Most day traders start their career trading in their personal accounts. As they become more experienced, these traders then move onto the trading floors.
At DTTW, we operate trading offices around the world where people engage in day trading on a daily basis.
If joining a proprietary trading company – accessing our capital to conduct financial transactions – and using software with direct market access is among your interests, please feel free to contact us.
What does this quote teach us?
This quote from Jesse Livermore contains several important lessons. First, it teaches you Reading books alone is not enough. In order to succeed, you will need to get directly exposed to the market. As mentioned, a demo account will help you become a better trader.
secondly, Training is a never ending process on any trader’s journey. In this, you must spend a lot of time learning and finding new ways to approach the market. As such, you should always read books and articles and listen to podcasts among other things.
Third , The market can be punishing at times. This means that even some of the best deals in the industry often lose money. We have seen many famous investors like Bill Ackman, Carl Icahn and Julian Robertson lose billions.
Related “ How to become a better trader by losing money
Tips to help you trade
There are many tips that will help you become a better trader. and the most important:
- Find a mentor Find an experienced person to guide you on your trading journey. The mentor will help you identify your weaknesses and formulate your trading strategy.
- Have a trading journal A trading journal is a useful document where you write down all your trades.
- Be part of the trading floor When you start your trading career, find a trading floor and be a part of it. You will use these skills to become a better trader as you progress to starting your own trading firm.
In this article, we looked at one of Jesse Livermore’s quotes on the financial market. The quote shows that while the market has great opportunities, traders often lose their money. Even experienced.
This is why continuing to improve through experience is a process that every professional trader must implement throughout their career.
Useful external sources
- The 21 Trading Rules of the Great Stock Trader Jesse Livermore – tradelife