Views on Life & on Equity Investing

Wonder, Wealth & Abundance

How To Trade In Stocks – Jesse Livermore

with 21 comments

In this concise book Livermore draws upon his natural ability as a speculator and boy plunger and bares open his genius Livermore Market Key to success.

It is no easier to become the best trader than it is become successful surgeon. Mind has to lend itself to pliability and humility – for market is always right, pride and chutzpah is better left locked up in the basement.

A successful trader has his almanac speaking to him back loudly, while he can’t predict what will happen, he listens to the screen unassumingly, always respectful of market madness. People continue to make the same mistakes as they make in the past.

He strongly advises to keep away from all insider information and “inside tips” will break a man. He urges to to be decisive, for success rides on the hour of decision. If one continues to exercise patience until the facts are general knowledge, the opportunity would have past us by, its imperative to make a decision with in sufficient information.

The fine line is thin between an experienced trader and a long term investor, as a successful trader evolves to hold stocks for long term multi year upwards moves aka trends rather than play on daily moves. Recommended reading.

Written by amitdipsite

August 7, 2011 at 10:41 pm

Posted in Uncategorized

21 Responses

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  1. New High end gear introduced in August after months of consumer preference research

    http://elinchrom.com/news.php?tab=news#80

    Amit Arora

    August 8, 2011 at 12:39 am

  2. Reminiscences of a Stock Operator is a book which is like a autobiography of Livermore. But according to wikipedia (http://en.wikipedia.org/wiki/Jesse_Livermore) he got bankrupt after he earned millions in trading the great Livermore commited suicide by shooting himeself.

    Praveen Munaga

    August 8, 2011 at 9:24 am

  3. the street of trading ends either at being bankrupt or if ur lucky u die before being bankrupt.

    vivek bha

    August 8, 2011 at 11:26 am

  4. Don't think Livermore killed himself because he was “bankrupt”. He left behind millions of dollars of assets. That was a lot of money in those days.

    MG

    August 8, 2011 at 1:36 pm

  5. Yeah, its manyfold times harder to be a successful trader than a successful investor. Invest in 20 above average business for the rest of life, evaluate annually and sorted.

    Amit Arora

    August 8, 2011 at 9:05 pm

  6. I also think most traders lose money in shorting and margin play and concentrated play.. Soros who is very successful always has 100s of bets running in parallel at times. Its so hard to imitate anyone else's style in trading.

    Amit Arora

    August 8, 2011 at 9:08 pm

  7. Hello Amit sir,
    In last downfall you had suggested few stocks which really outperformed the market and also every security available such as Gandhimathi Appliances, Astral Poly, Cravates, etc. I would rather say all of your recommended stock outperformed.
    However in current downfall I would like to have a new list from you as last time I did not invest heavily on your recommendation. But this time I am sitting on huge cash and will invest every penny out on your recos. So eagerly awaiting a new list of scripts considering the current market situation. Thanking you in advance.

    Regards,
    Jaimin

    Jaimin

    August 9, 2011 at 12:55 am

  8. Hi Amit,

    I back the Jaimin here. I request you to preapre a list of stocks that are quoting at good valuations and looking good for long-term capital gains.

    sandeep maddali

    August 9, 2011 at 10:17 am

  9. hI AMIT,
    WHATS UR VIEW ABOUT THE ksoil AND lANCO INFRA AT THIS RATE FOR INVESTMENT

    AKKI

    August 9, 2011 at 5:05 pm

  10. There are so many games to be played in stock market that it would be limiting if I told you ABC are five best stocks. 100s of companies are growing at 15-20% in India.

    In Microcaps I like are Intec, Photoquip, Puneet Resins. You'll do well in life even if you allocate just 2-5% portfolio to high quality micro cap companies and buy dozens of them. You'll have less risk than owning 4-5 stocks and do as good or better than owning Nestle. If you don't have time to track micro caps buy great companies like Asian Paints or fast growers like Page Industries.

    KS Oils is a stock to be bought as soon as interest rates start coming down.

    Regards

    Amit Arora

    August 11, 2011 at 12:17 pm

  11. Hi Amit,
    I am really confused by contradictory reports of various analyst regarding Nifty – few predicting 5000 as a bottom and few giving a target of 4200 to 4500.

    I do not want to miss the bus like I did in 2008 and also do not want to be running short on cash if and when market is in deep red. what may I ask is your strategy – accumulating less than 5% of allocation on every dip of 50 to 75 points or more than 5%?

    Regards,

    Amar

    August 11, 2011 at 7:16 pm

  12. Another minor detail I've been sitting on for a year, Sanjeev Goel's (Intec's founder) brother is a self made person too.

    http://www.intecinfonet.com/about.html

    Amit Arora

    August 11, 2011 at 11:57 pm

  13. Hi Amit

    I hold AK CApital. I am quite confused on if I shall replace it with intec capital. Can you please draw a comparison b/w the two.

    Analyst

    August 12, 2011 at 6:07 am

  14. Recruitment Manager for Intec Capital–http://hrlink.in/jobs/recruitment-manager-for-intec-capital

    –Great so they have nice Pedigree too. It definitely helps to grow business.

    Rahul Kumar Paliwal

    August 12, 2011 at 6:53 am

  15. Hello Analyst,

    Intec Capital will (is expected) to grow 25-30%+ in terms of EPS per annum.

    However, I cannot forsee clear year on year growth in AK Capital. Its sitting on big opportunity, Debt Market is bigger than Equity market globally but not in India. AK Capital has 180+ Crores in Bank and MFs therefore a value stock too but growth can be non-linear and very very spectacular as well. No downside, unclear annual growth but possibility of 10-20 bagger as well in bull run.

    Regards

    Amit Arora

    August 12, 2011 at 7:32 am

  16. Some confidence-conviction booster Information about Intec from company group itself, gives very rosy picture of future:
    http://www.intecinfonet.com/intec_security.html

    Rahul Kumar Paliwal

    August 12, 2011 at 7:54 am

  17. Cravatex is going to be my biggest holding in a month. Will accumulate.

    Regards

    Amit Arora

    August 12, 2011 at 10:29 am

  18. hi amit,
    u having 09 AR of Intec ?
    i have 07, 08 and 10 but not 09…
    kindly share !!

    Jatin

    August 12, 2011 at 10:51 am

  19. Hi Amit ,

    Why cravatex net Consolidated profit is less then standalone profit …Is it something they have spent in their new subsidiary??

    Thanks
    umang

    umang

    August 12, 2011 at 3:05 pm

  20. Selvan

    Are you still invested in Cravatex ? Congratulations to you.

    Yes there is a cost to pay for expansion hence consolidated profits are down.

    Regards

    Amit Arora

    August 12, 2011 at 7:33 pm

  21. KS OIL is on dust now, I think some reader has asked about it.
    I was in that counter long back@50 and sold the day when I got the news that IT team raid there and I got no response on my queries..Aha, Why I could not do that on Patel Engineering..
    Do not know what Amit thinks of these..Is it some special situations like MMFS?

    Rahul Kumar Paliwal

    August 17, 2011 at 8:22 am


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