February 26, 2008

Livermore's words

Keep in mind, Livermore's words hold wisdom, but his volatile life is another story.

The only time I really ever lost money was when I broke my own rules.
Jesse Livermore

Throughout all my years of investing I've found that the big money was never made in the buying or the selling. The big money was made in the waiting.
Jesse Livermore

Profits take care of themselves - losses never do.
Jesse Livermore

Remember, you do not have to be in the market all the time.
Jesse Livermore

The successful speculator must always have cash in reserve, like a good general who keeps troops in reserve for exactly the right moment, and then moves with great conviction, and commits his reserve armies for final victory, because he has waited until all the odds are in his favor.
Jesse Livermore

I believe that the public wants to be lead, to be instructed, to be told what to do. They want reassurance.They will always move on masse, a mob, a herd, a group, because people want the safety of human company. They are afraid to stand alone because the pressure is to be safely included within the herd, not to be the lone calf standing on the desolate, dangerous wolf-patrolled prairie of contrary opinion.
Jesse Livermore

Reasonable people act unreasonably when they are afraid. And people become afraid when they start to lose money, their judgement becomes impaired. This is our human nature in this stage of our evolution. It cannot be denied. It must be understood.
Jesse Livermore