Wonderful examples in stock investment: 1
Jesse Livermore, a legend in the financial world, always makes money in his own unique way
Contributed by: Ai Ping
He is a genius who debuted at the age of fourteen to do speculation, known as the "big gambler", once shorted on Wall Street legend, so that the U.S. government are focused on the stock game, today we take a look at his investment market highlights.
When the stock market was in a slump and there was nothing to do, Jesse Livermore came to the Florida coast for a vacation with friends to relax, and one day he saw market information in the newspaper, and the stock market just rebounded by more than 10 points.
He knows that it is normal for the market to fluctuate, and it is reasonable to have a moderate rebound from time to time, but many people ignore the basic laws of the market and see the market continue to pour in as soon as it rises, so that the stock price continues to rise. He keenly saw that the opportunity had come.
He always made money in his own unique way.
When he saw on the quotation board that Anaconda's price was about to cross 300 points. It was rising, and he could see that someone was buying the stock. He feels that he should buy when the stock price has just broken through the round mark, but buying when the stock price reaches a new high is a lot of risk.
His prediction was that the stock would continue to rise after breaking through 300 points, so he reacted quickly and bought 32,000 shares of Anaconda, equivalent to 8,000 other ordinary shares.
The next day, due to a snowstorm, the telegraph line was interrupted. He got the day's offer of 292 in the evening. This means that he lost $100,000 on his books. It is important to be able to stabilize when the book loses, and it is important to have your own judgment.
On the third day, Anaconda opened at 298 and then rose to 302.75. At this time, most people will expect it to rise even higher.
But he found that there was a problem with the strength of the stock's rise, and he also noticed that the movement of other stocks in the market was not optimistic. He knew the time had come to strike.
In fact, human nature is like this, and he also wants to make this stock continue to rise. But he is sober, knows that it is appropriate to stop, and the key point is the overall trend of the market, not a small-cap stock can be pulled up at will.
When we enter the story, we must learn a lot of knowledge, observe the market, and always keep a clear mind and overcome the weaknesses of human nature, so as not to make mistakes and make fewer mistakes.
When everyone saw Anaconda bounce back and thought the stock price would continue to rise, he sneaked up next to the telegraph operator and sold out all of Anaconda's stock.
Subsequently, the market began a rally and people thought the bull market was back. However, through the changes in the market, he knew that this wave of rebound had come to an end. So he began to empty all the stocks in his hand.