Stocks analysis dictionary

A fool sees not the same tree that a wise man sees. William Blake, 1790 There are two primary methods used to analyze securities and make investment decisions: fundamental analysis and technical analysis. Fundamental analysis involves analyzing a company’s financial statements to determine the fair value of the business, while technical analysis assumes that a security’s price already reflects all publicly-available information and instead focuses on the statistical analysis of price movements. The fundamental approach … Continue reading

The Wisdom of Jesse Livermore

Jesse Livermore led a life of brilliance and excess, surrounded by mistresses, scandals, money, and bankruptcy. He was a legendary trader who played big and made millions during the crash of 1929. But by 1934, Livermore would have depleted the $100 million fortune he earned on the stock market just five years earlier. He declared a third bankruptcy, went through his second divorce, and committed suicide in 1940 — the newspapers then detailing his scandals … Continue reading

The true words of Jesse Livermore

True words and thoughts by Jesse Livermore on Trading

Introduction In 1929 Jesse Livermore’s fortunes were at their zenith. He had made a profit of $100 million dollars shorting the markets during the great crash. Yet, by 1934, he was bankrupt. In just five short years one of the greatest stock-traders the world has known lost his entire $100 million fortune. We cannot blame this on the inadequacy of his trading rules – they were fully formulated by then. We must conclude that he … Continue reading

Jesse Livermore 21 Trading Rules

A trading philosophy is something that cannot just be transferred from one person to another; it’s something that you have to acquire yourself through time and effort. Richard Driehaus My sense of insecurity keeps me alert, always ready to correct my errors. George Soros To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate. Jesse Livermore Introduction In 1929 Jesse Livermore’s fortunes were … Continue reading