I just finished reading the stock trading book – Jesse Livermore World’s Greatest Stock Trader by Richard Smitten. It was a very profounding book on the real life story of the Reminiscences of a Stock Operator Legend.
Livermore has been broke 3 times during his life time and lost all his money in the trading. And yet he come back strong by making millionaire in the stock market. One of his secret that he believed strongly in his own trading system. That’s the reason why he was so successful in stock trading. The only time he fall when he did not follow his own rules and start listening to others.
I learn a lot from this book and it is a great lesson in investing and trading. Jesse said in this book that the stock market has changed and will change in time but the human character in trading will never changed. There are greed and fear elements in trading and if we can control these character in ourself we will able to beat the stock market in the long run.
The trading rule mentioned in this book that Jesse Livermore adopted is simple but hard to follow. Some of the rules are :
- Don’t lose your trading capital.
- Always established a stop.
- Don’t lose more than 10% of the trade if it goes against you. Take the small losses if you must.
- Let the wining position ride in the same trend
Jesse has actually written his own stock trading book called “How to Trade Stocks” which will be my next stock trading book to read when I have the free time.
I would strongly recommend this great book to anyone who is in stock trading.
As I have chosen this path to make money in my journey to millionaire success and I believe in increasing my stock trading knowledge if I want win big in the stock market.
To your millionaire success.
Michael Liew