Tuesday, October 18, 2016
Book Review: Reminiscences of A Stock Operator
This may be the best book ever written about trading stocks. Sure, it was written a hundred years or so ago, but the market behaves very similarly today.
Jesse Livermore made millions in the glory years of early 20th century stock trading. He DID NOT use inside information either - just tape reading (the record of price movement).
Here's some major takeaways from the book:
1. Learn to read a chart (book doesn't discuss chart reading, just advises you to learn it)
2. Learn to trust your instincts, read the chart and ignore hot tips.
3. Learn that the market forms ideas that it is slow to abandon.
4. Learn to trade current events
5. Learn to recognize deceptive tricks (And this book has a lot of classic examples that still get used today!)
Wonderful writing really gives you a sense of early 20th century stock plungers: the bucket shops, the trips to Florida for fishing, catching the train, going broke in Boston and starting over in Cleveland, the crusty characters at the local stock brokerages and more.