The Single Most Important Thing I Learnt From Jesse Lauriston Livermore

Jesse Lauriston Livermore (July 26, 1877 – November 28, 1940), also known as the Boy Plunger[1] and the Great Bear of Wall Street, was an American stock trader. He was famed for making and losing several multimillion-dollar fortunes and short sellingduring the stock market crashes in 1907 and 1929.

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https://en.wikipedia.org/wiki/Jesse_Lauriston_Livermore

The Single Most Important Thing I Learnt From Jesse:

“Disregarding the big swing and trying to jump in and out was fatal to me. Nobody can catch all the fluctuations. In a bull market your game is to buy and hold until you believe that the bull market is near its end. To do this you must study general conditions and not tips or special factors affecting individual stocks.”

“Without faith in his own judgment no man can go very far in this game. That is about all I have learned – to study general conditions, to take a position and stick to it. I can wait without a twinge of impatience. I can see a setback without being shaken, knowing that it is only temporary.”

In property, it is all about Location, Location, Location. In stock market, it is about Conditions, Conditions, Conditions. Stop being emotional, be objective and study the conditions affecting the markets. Example – if there is no positive earnings catalyst, how can a stock continue to climb on its upward trend? If the general economy is not favourable, isn’t it more likely to see a decline in the general indices? If there is a fundamental shift in the industry, shouldn’t you be concerned? Fundamentals matter. 

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