Be Like Jesse. The Greatest Trader. June 18, 2009
Posted by wallstreetbuddha in Uncategorized.Tags: Books
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On my way back from Florida, I had may favorite book “Reminiscences of a Stock Operator”. Every time I go through a dry spell, I jump into the book. Often times the market gets dull and there’s no trading going on for weeks. So often times I go into research mode and read great books.
I was first introduced to the book over 10 years ago. Like most books, I read a couple chapters and tossed it aside. As time passed, I evolved as a trader, more and more things in the book made sense. Little golden rules start to appear. It’s interesting because the book is written in first person. You are “Larry Livingston” aka Jesse Livermore, the greatest trader that ever lived. You experience these events, it’s almost as if you are really there.
There’s funny situations as well. Like the nature of traders, how we’re all kinda hooked on this great game. Jesse plans a 3 week vacation to go fishing in Florida to relax. He does a little fishing but his ticker sense compells him to head back to shore and “check the quotes” at the local broker house. His mind starts to spin with trading theory–most of which is very valid today. Before he knows it, his is piled in on the short side. With big short positions pending, he cuts his vacation short to head back to NYC. On a second occasion, he takes a cruise from New York to France. Long time to be away from the quote machine. By the time he gets to France he immediately took the next speed boat back to New York. Haha….what a addict. I can totally relate. I think Jesse would dig an Iphone.
On the serious side, the dark side. It puts you in the place of a losing trader. Jesse goes bust. We all go bust. At least in the beginning. This is a serious lesson. In the beginning of my trading experience I too have busted my account. Dot.com meltdown 2000 and Sept 11. Luckily I was just a kid with a few thousand dollars. I owed my broker. At the time, it’s was all I had. This is important because I think 99% of all traders have busted. It’s a rite of passage. haha. The book also contains sage advice, on how never to go bust ever again. Risk Management. —it’s a big word. It’s crucial for survival, and there are a thousand ways to do it. I won’t get into it because I don’t want to write a book.
Because we all have A.D.H.D. I cut this post short. So much to say about this book. Read the book. It’s the story of our lives. Cheers.
