A great book that deals with the mental war that is trading and how it determines whether you win or lose in trading. This is the one book i never bothered reading but wish i had 17-18 yrs ago. I highly recommend to anybody especially newbies.Probably best to read after you have taken a few hits. This and the edwards/magee book are bibles.The funny thing is they are based on trading from nearly 100 yrs ago or more.Funny how trading back then is no different than now.Same reactions to gossip,fear,greed,stupidity. People never change thats why.Human psychology is predictable and hasnt changed much in thousands of years if at all. Im going to read the book about extraordinary manias next.Written in 1840!
great book---UNDERSTATEMENT! is more relevant now more than ever. funny though i thought the SEC was created to stem the excesses greed graft and corruption from the market-they just found loopholes or changed the name of the same tactic i.e. investment pool is now a hedge fund etc etc-eye opening for sure! and you can see that the market is not honest and manipulated for sure-a real eye popper!!! should be stock trading 101 required reading before anyone places a bet-go long ford
what i take away from that book is that it tells you not to let your emotions get in the way of your rational thoughts and to stay with your convictions.Dont be scared out of your positions.
the emphasis of the book it seems is to NOT listen to all the static and noise like tips,market commentators,gossip etc.Only to look at the tape action.The tape action precedes 'the news'.Basic stuff but it is so easy to get scared out of your position when you have yammering ninnys on cnbs or websites etc. When i read it i was thinking of how this guy was talking about garbage that happens in todays trading but this guy is talking about trading during the 1890s to 1930s!!!ITs uncanny how trading and the emotional,mental and psychological aspects of it are the absolute same today as then.Its a gas.
"Wall Street never changes.The pockets change, the suckers change, the stocks change, but Wall Street never changes because human nature never changes." - Jesse Livermore
I assume you are referring to "Extraordinary Popular Delusions and the Madness of Crowds"? Interesting book. A bit dry due to the old writing style. The bits on the financial bubbles were interesting -- but the bits on alchemy and witch hunts dragged a bit. The book makes clear evidence that humans are prone to mania...
Reminiscences is truly a classic as reflected in the ET reviews. Was shocked at how relevant the book is (& entertaining). Livermore's ability to absorb & learn the lessons from the market is legendary & even more so, given the years he traded. In addition, his recognition of how critical a part psychology plays both in the mkt and the individual trader's mind is amazing. Since this is a fictionalized account, I recently read Richard Smitten's book to separate some of the fact from fiction. While a worthwhile read, it isn't as entertaining as Reminiscences. While this book is probably helpful to gain a historical perspective on mania's, I'm not sure how much is added for anyone who lived through the dot.com times. As for entertainment value, there is none - very dry reading. R
Try these: Wall Street Ventures & Adventures Through Forty Years. Richard Wyckoff Jesse Livermore: Speculator King. Sarnoff