Can you trade like jesse livermore?

This is a discussion on Can you trade like jesse livermore? within the Educational Resources forums, part of the Commercial category; Originally Posted by Glenn Which seems to suggest that if you have a position open and the market goes flat, ...

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Old Apr 22, 2005, 7:09pm   #16
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Quote:
Originally Posted by Glenn
Which seems to suggest that if you have a position open and the market goes flat, that you are wrong.
Don't agree. I think you are muddying the waters.
Where did I mention anything about an 'open position'?

Glenn, get a grip, it's just a rhyme...
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Old Apr 22, 2005, 9:00pm   #17
 
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Quote:
Originally Posted by TheBramble
Where did I mention anything about an 'open position'?

Glenn, get a grip, it's just a rhyme...
Nothing wrong with entering a flat market if you have a method for it.
Perhaps you don't ?
You have to be in it to win it.

Glenn
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Old Apr 22, 2005, 9:51pm   #18
 
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Hold that line

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Look this does not make any sense at all. You think a guy could quote himself and get it right.
Quote:
Originally Posted by TheBramble
Unless the market is flat
When you should stand pat
Unless the market is flat
Then you should stand pat.

Last edited by -oo0(GoldTrader); Apr 25, 2005 at 11:52pm.
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Old Apr 22, 2005, 10:49pm   #19
 
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Quote:
Originally Posted by Glenn
Nothing wrong with entering a flat market if you have a method for it.
Perhaps you don't ?
You have to be in it to win it.

Glenn
Not necessarily. Sometimes the winning choice is to stand aside.
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Old Apr 22, 2005, 11:52pm   #20
 
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Quote:
Originally Posted by dbphoenix
Not necessarily. Sometimes the winning choice is to stand aside.
It would be sensible to stand aside if you didn't know what you should do in terms of taking a position.
But if you have a method for entering in flat markets, then you don't need to stand aside.
A simplistic example:-
You look at a chart and see where you could have opened a position in the past.
Your method confirms that had you entered that position, you would still be in it even though the market is now flat..
Therefore you could enter the position now in much the same way as you might pyramid the initial position.
Glenn
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Old Apr 22, 2005, 11:55pm   #21
 
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If one has a method that's been proven to be consistently profitable, agreed.
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Old Apr 23, 2005, 7:35am   #22
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Quote:
Originally Posted by Glenn
It would be sensible to stand aside if you didn't know what you should do in terms of taking a position.
But if you have a method for entering in flat markets, then you don't need to stand aside.
A simplistic example:-
You look at a chart and see where you could have opened a position in the past.
Your method confirms that had you entered that position, you would still be in it even though the market is now flat..
Therefore you could enter the position now in much the same way as you might pyramid the initial position.
Glenn
Glenn, I originally thought you may be alluding to trading volatility (or lack of). Fine with that.

But your above example doesn't take into account the 'time cost' of 'dead money'.

Jesse didn't like to leave his money on the table...
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Old Apr 23, 2005, 8:50am   #23
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Originally Posted by -oo0(GoldTrader)
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“he really meant to tell them that the big money was not in the individual fluctuations but in the main movements that is, not in reading the tape but in sizing up the entire market and its trend. “

Hi G.T. I have read the book, and I agree with you that this is what he meant. I have made money in the past with this advice / method. keep posting you have Livermore Spot On.
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Old Apr 23, 2005, 1:15pm   #24
 
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[QUOTE=-oo0(GoldTrader)]” old Mr. Partridge kept on telling the other customers, "Well, you know this is a bull market!" he really meant to tell them that the big money was not in the individual fluctuations but in the main movements that is, not in reading the tape but in sizing up the entire market and its trend. “

To me, the above quote is the Crux of the book. After initially making money in the bucket shops, Jesse Livermore was forced to try trading on the main boards of Wall Street, as he was banned from trading at most of the bucket shops.
This was JL’s move from the minor league to the big league.
He moved to New York where he proceeded to take losses, despite being correct in most of his selections.

He didn’t know what he was doing wrong, and the sage advice of "Old Turkey" (Partridge) didn’t dawn on him immediately.
"I knew I needed to change my bucket shop methods ..…. “


“You find very few (customers) who can truthfully say that Wall Street doesn't owe them money. Well there was one old chap who was not like the others."
This was "Old Turkey".
"My dear boy, if I sold that stock now I'd lose my position; and then where would I be?"

Adoption of Old Turkey's approach and sitting it out on "the Big Swing" despite the numerous fluctuations, was to be the turning point in Livermore's career - his entrance so to speak, into the Big League.
He realised that trading the minor fluctuations and the costs associated therewith, while at the same time missing the "big move", (the timing of which can't always be anticipated), was the cause of his failure.
"I think it was a long step forward in my education," he says in the book.

There is more wisdom; insights into the behaviour of people, and common sense in this book than any other I know of. Not only as regards the stock market, but life in general.

Hopefully your appetite has been wetted, because there is so much more to read.



Last edited by wobbles; Apr 27, 2005 at 11:50am.
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Old Apr 23, 2005, 1:47pm   #25
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As far as I know Richard Smitten has pruned Livermore's work for some unknown reason. The only way you can read the original work is by buying the 1991 (or earlier) edition for an astronomical price at eBay (checked this morning, there's one for USD 450).

I just can't figure out why someone would edit out Livermore's work and why people would still buy that.
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Old Apr 23, 2005, 1:58pm   #26
 
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Quote:
Originally Posted by pratbh
As far as I know Richard Smitten has pruned Livermore's work for some unknown reason. The only way you can read the original work is by buying the 1991 (or earlier) edition for an astronomical price at eBay (checked this morning, there's one for USD 450).

I just can't figure out why someone would edit out Livermore's work and why people would still buy that.
You can buy the non-Smitten RSO used at Amazon for $6. A digital copy can be downloaded for $1.99.
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Old Apr 23, 2005, 3:07pm   #27
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Not RSO, I'm talking about How To Trade In Stocks by Livermore himself.
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Old Apr 23, 2005, 3:53pm   #28
 
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Quote:
Originally Posted by pratbh
Not RSO, I'm talking about How To Trade In Stocks by Livermore himself.
Either way, I can save you the money. How he traded in stocks was nothing more than a combination of primitive point-and-figure combined with swing points, all of which can be jotted down on a scrap of paper (which apparently is how and why P&F got started). No big mystery, and no grail. I had the book at one time and thought "that's it?" and gave it to the library.
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Last edited by dbphoenix; Apr 23, 2005 at 4:04pm.
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Old Apr 23, 2005, 5:29pm   #29
 
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Quote:
Originally Posted by TheBramble
Glenn, I originally thought you may be alluding to trading volatility (or lack of). Fine with that.

But your above example doesn't take into account the 'time cost' of 'dead money'.

Jesse didn't like to leave his money on the table...
If it is included in the method, then it does take it into account.
The example was simplistic as described.

Glenn
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Old Apr 24, 2005, 12:27pm   #30
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just bought the book

Mohican started this thread Just bought the book and reading it,,,
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