"This stock has bottomed out, how much it falls will rise back, quickly pick it up!"
"You think you're Warren Buffett?"
When it comes to stocks, most people think of Buffett, the god of stocks, and even people who are not professional stock speculators have heard of this name.
Buffett is indeed a myth. He never went bankrupt, and that's what makes him the greatest. Compound interest has made his fund company mythical for more than half a century, and even now, it can maintain sustained growth.
Another once-in-a-century trading and investment genius, Jesse Laureston Livermore, is little known.
Jesse Lauriston Livermore was a legend on Wall Street in New York in the 1920s, the most fancy millionaire of his time, a legendary figure like no other.
Jesse Laureston Livermore was described as "a lifetime great, a lifetime crazy".
There are many versions of the rumors about him on the jianghu, and in order to justify his name, he was interviewed by reporters, frankly recalling the past, telling his own growth experience and the tortuous trading process.
The original "Memoirs of a Stock Writer" was edited by Edwin Lefebvre in an interview with Wall Street stock trader Jesse Lauriston Livermore.
Jesse Lauriston Livermore – the most outstanding stock market trader and mastermind
It's a biography, and the plot is ups and downs and exciting. You can watch the life of a legendary person in one breath, and it is definitely a very exciting and exciting experience.
1. Overview of a lifetime
Jesse Lauriston Livermore was born in Massachusetts in 1877 and came out to work as soon as he graduated from junior high school.
When he was a market "bookboy" in a stockbroking agency, with an amazing memory and sensitivity to numbers, he began to trade in betting by chance at the age of 14.
He began to show his genius in stocks, known as the "teenage craftsman" and "Wall Street bear".
At the age of 15, he earned the first thousand dollars in his life;
At the age of 20, he accumulated $10,000 in cash for the first time;
At 24, he earned fifty thousand dollars;
At the age of 30, he earned his first $1 million in life, worth three million dollars;
At the age of 52, he is already worth $100 million
……
He spared no effort to speculate, his understanding of the market, trend analysis, trading means, capital management, etc. rose to a new height, he ushered in a beautiful, brilliant moment, and finally reached the peak of his career.
Of course, the process was not smooth —
He went through 4 bankruptcies in his life, the first 3 of which were all comebacks. And the fourth time, he chose to commit suicide.
Throughout his life, there are poverty and prosperity, there are desperate to make money, there are also keen to enjoy, spend money like soil; there are times when life is a winner, there are also moments when all thoughts are gray... His legacy, "Stock Mastery Manipulation", has his heartfelt words for preaching and teaching.
In appendix I of the book, there is the "Chronology of Jesse Laureston Livermore", which combs and records his trading career, his wonderful, tortuous life.
2. Investment philosophy and operation methods
If you have to compare him with Buffett, the biggest difference between these two people is the investment philosophy and operation methods.
Buffett studied under Graham, the father of value investment, and belonged to the formal financial professional class, and his investment philosophy was value investment. He excels at acquiring undervalued businesses, holding them for a long time, earning slow money with low yields, and achieving sustained wealth growth through compound interest and time.
And Jesse Laureston Livermore, he specializes in short-term technical analysis operations in the stock market, earning spreads, high yields, making fast money, and risky. He is known as the "speculative giant" and "the king of speculation".
It can be said that the life that caused him to rise and fall was his speculative behavior. He could go bankrupt overnight, and then quickly make a comeback, he made a lot of money from speculation, and he was also severely punished by the market.
In the 1906 San Francisco earthquake, he shorted the stock and made a profit of $250,000;
In the same year, he traded on the advice and lost $40,000;
In 1929, the stock market crashed, and he made more than $100 million short
He is an out-and-out speculator who goes long when the market is rising strongly; when the market reverses bearish, he goes short.
Investment transactions - should obey the laws of the market, obey the trend
For more than a decade, this book has gone through different times and different markets. It is still regarded as a treasure by generations of market participants around the world, and its value can be seen if it is a teacher and a friend.
Jesse Lauriston Livermore's trading career and ups and downs of life give people more to think and inspire:
1. Where in the world is there any genius?
The so-called genius is nothing more than falling down again and again, getting up again and again, growing in mistakes, deepening and surpassing the self.
For example, Jesse Lauriston Livermore, his growth path has not been smooth. He has succeeded and failed, won a lot of applause, and left deep regrets.
The correctness of a trader's behavior is directly related to the gain or loss of property. Investors who have experienced the stock market crash in 2008 and 2015 or several rounds of bulls and bears are the most experienced.
2. Respect the market, fear the market
Participants in the market should choose the technical analysis of the market. Even a genius in trading cannot violate the basic principles of the market or manipulate the market in vain.
But the greed of human nature often makes people forget panic, decisiveness, and reason, and become reckless and aggressive; sometimes because of the continuous interruption, they are chaotic.
The right mindset of controlling hope and fear can survive in the stock market.
Keep in mind --
Speculation is the most downright magical game in the world.
Every participant in a market is just a part of the market.
We must rely on the market for profit, and we must follow the rules.
The strongest "post-90s" Buffett is ranked No. 4 in the world in assets, has a huge wealth of $89.4 billion, and now enjoys life at the age of 91; the speculative Jesse Lauriston Livermore commits suicide in insolvency.
Their very different endings are the best illustration.
3. Put success or failure in perspective
"My life is a failure!"
These are the last words Jesse Lauriston Livermore left for the world. He thinks his whole life was a failure, and many people think so.
But there is no denying that he lived a legend!
He poured his talent, talent and enthusiasm into the financial markets, from a small person with no name to a big person who could control the stock market.
Ordinary people, can't do it! He's a "big gamer"!
His experience is still a textbook in the stock market, and is revered by Peter Lynch, Buffett, Soros, Graham and others.
U.S. President Wilson personally summoned him, and Mr. Morgan, the king of Wall Street, consulted with him.
Buffett once said of the book:
No matter how many investment books you read, you may not be able to really laugh at the stock market, if you have not read this book, then profit is basically equal to nonsense, you can imagine Livermore's position in the capital market.
It can be seen that he is highly recognized!
This is also an important reason why this classic work can transcend the times and regions, and be regarded as a treasure by generations of market participants around the world!
I am Shadow Half Summer, reading with you.