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"Att veta är att göra!" /Sokrates

"StockTrading Rules" by the Worlds greatest stock trader

Jesse Livermore 1877-1940: var (och är) hittills den absolut mest framgångsrika amerikanska aktieinvesteraren.

Böcker om honom och hans teknik är klassiker!

Jesse Livermore, World's Greatest Stock Trader av Richard Smitten, ISBN 0-471-02326-4
Reminiscences of a Stock Opreator av Edwin Lefévre, ISBN 0-471-05970-6

Han säger till exempel:

En framgångsrik investerare är hela tiden koncentrerad på dessa 3 saker:

  1. Marknadens "timing"
  2. Hantering av kapital "Money Management"
  3. Kontroll av egna känslorna

Contrary thinking

Marknadens "timing"

  • Only play the market when you are sure presedents favor your play.
    There is a time for everything.
  • My game was to anticipate what was going to happen in a big way!
  • If a stock does not act right...
    Don't touch it.
    No diagnsis ... No prognosis
    No prognosis ...No profit!
  • All a man needs to know to make money is to appraise conditions.
  • Men who can both be right and sit tight are uncommon. But its only after you firmly grasp this you can make BIG money.
  • The bull forces were at work, and the public never is independently responsive to news.
  • Think of basic conditions instead of individual stocks.
  • To buy in a rising market is the most comfortabe way of buying stocks.

Hantering av kapital "Money Management"

  • I buy stocks on a scale up!
    (Never be afraid to buy expensive stocks)
  • I never want to buy stocks too cheap or too easily.
  • I made the mistake of not giving proper time for the bull market to switch to bear market. Or visa versa
  • I am right at never trading at limits! = When you want/need to get out GET OUT!
  • The first 10 000$ I lost because I WRONGLY traded in and out of season, EVERY DAY ...regardless if conditions for profit was there or not! :-(
  • Never go against the trend of the group!
  • By buying or selling with 20% (of total sum) you test the line of least resitence.
    Then follow that line IN 2 MORE PROBING
    20% TESTs. Final 40% bought after that if the line is holding! :-)
  • Quickly adapting to new conditions is valuable. :-)

Kontroll av egna känslorna

  • I allways knew I would have another chance and I would not make the same mistake e second time. I believed in myself!
  • There is nothing like loosing all you have in the world for teaching you what not to do. And when you know what not to do in order not to loose money, you begin to learn what to do in order to win. YOU BEGIN TO LEARN!
  • When one is properly bearish at the very beginning of a bear market it is well NOT TO BEGIN SELLING IN BULK unti there is no danger of back-firing = small bull rallies
  • The only thing to do when a man is wrong, is tobe right by by ceasing to be wrong!
  • You NEVER grow poor taking profits!
    ...true but you also never grow rich by being outside in the major moves! :-)
    Conclusion: Don't go in and out taking profits, whenever you expect a major move! :-)
  • Market often takes its time to react...
  • Avoid the first/last 8% of a movement :-(
  • My greatest discovery was that you must study GENERAL CONDITIONS, to CORRECTLY anticipate probabilities.
    • A. Study general condition = overall index
    • B. add the group index trend
    • C. based on A+B... take a decision/position in individual stock
      and then STICK to it.
  • LOST MONEY CAN BE THE BEST TEACHER IN THE WORLD!

Övrigt:

  • Whatever happens in the stockmarket to-day has happened before and will happen again.
  • There is only one side to the stockmarket.and that's not the bull or the bear side...but the right side.
  • Nobody can make big money on what someone else tells him to do.
  • I am only right when I make money!
  • When I am bearish and I sell a stock...each sale must be at a lower level then the previous sale. When I am buying the reverse is true.
  • Deadly internal enemies are
    • Ignorance!
    • Greed!
    • Hope!
    • Fear!
  • In bull markets the public first makes money and then looses them, simply by overstaying the bull market. :-(
  • The course of market is allways 6-9 months ahead of actual condition.
    The trader must look far ahead!
  • I have allways found it profitable to CAREFULLY study my mistakes.
    "Lost money can be the best teacher!" :-)
  • After the initial transaction, don't make a second unless the first show you a clear profit.
    Wait and watch! :-)
  • Stocks are never too high for you to begin buying or selling them!
    Ride the line of least resistence! :-)
  • There is a time for all things! :-)
  • When a stock passes 100,200 and 300 the first time the price NEVER stops for some time! 30-50 points ...
  • I MADE MY MOST MONEY BY SITTING INVESTED IN A MAJOR MARKET MOVE!
  • In Bull markets bear item are ignored and Bull news exaggerated, and vice versa.
  • Human nature FEAR & GREAD & HOPE is your greatest enemy.
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