Monday, November 8, 2010

GAME PLAYERS

The legend and romance surrounding the famed stock plunger Jessie Livermore has long held a fascination among traders. Livermore has become somewhat of a cult in recent years and there are several books that purport to reveal his secrets for making a fortune in the stock market. None of them can hold a candle to the book which Livermore himself commissioned (written by journalist Edwin LeFevre) entitled Reminiscences of a Stock Operator.



This book is essentially an autobiographical account of Livermore’s trading career as told to LeFevre. It chronicles his meteoric career starting with his early days as a small time operator in “bucket shops” and culminating with his heyday as a big Wall Street mover and shaker. Market students have for years combed this book hoping to find the “hidden secret” to Mr. Livermore’s successful career as a speculator but their efforts have largely been in vain. Livermore left no abiding set of rules for consistently beating the stock market. In fact, he himself fell victim to Mr. Market as he won and lost a fortune on more than one occasion. His life and career came to an inglorious end when he killed himself in the cloakroom of a Manhattan hotel at the age of 63.



The fact that Livermore was never able to crack the secret code of the stock market hasn’t stopped his legions of fans from their endless pursuit of the market’s “Holy Grail.” Had they listened to Mr. Livermore himself, however, they would realize that there is no Holy Grail when it comes to forecasting the stock market with consistent accuracy. (Tragically, Livermore himself seems to have forgotten his own advice on occasion).



Yet there is a wealth of wisdom in Mr. Livermore’s autobiography and much of what he wrote some 90 years ago is just as applicable in today’s financial marketplace as it was in his own day. His assessment of human nature and the markets could easily be applied to the recent credit crisis. “Nowhere,” wrote Livermore, “does history indulge in repetitions so often or so uniformly as in Wall Street. When you read contemporary accounts of booms or panics the one thing that strikes you most forcibly is how little either stock speculation or stock speculators today differ from yesterday. The game does not change and neither does human nature.”

http://news.goldseek.com/ClifDroke/1289142000.php

22 comments:

  1. Nadame Wayalat has a good article out on US MARKETS today on his blog...Any body listen to those videos on youtube what Lidnsey Williams talks about what the elite are doing to us economy..Gold and oil prices he says by 2012 gold will be over 2k and oil over $140 a barrel....interesting stuff...

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  2. Seems like SLW has decided there is no such thing as retracement,heheee!

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  3. FEED looking good as well...Nuk Nuk NUK

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  4. dj,

    I agree with FEED, trying to feed the chinese is a big deal, this one takes time but can get to 7 in a yr or so.

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  5. woodcarver,

    There are many many shorts still in ATPG, I was impressed by their announcements today.

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  6. woodcarver,

    EXK is due to report their earnings on Wednesday,which means today and tomorrow is quite possibly short covering.

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  7. Is anyone trading uso here or just sticking to dto? svm, slw are monsters over the last few days!

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  8. IS it wise to buy gold coins..I mean if dollars keeps going lower it could be a hedge right..

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  9. Palmer would like to see higher prices on FEED Before a yr but thks for responding...May get earnings pop...soon...

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  10. DAMN.......sold ATPG too early today ...nice SSRI trade from friday and today......ANV out of from buy this am.....all in all doing well fighting my DTO holding.......hehehhehe

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  11. I am going to ride until Wed ( EXK), still holding ATPG, PAL, VPHM,ATSM Thanks Joe

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  12. kli,

    I have a friendly advice for you which I am sure you won't listen, with the amount of shares you try to trade, best way to do it is the way your father-in -law does it otherwise you drive yourself nuts and won't maximize profit. You are not playing with 6 figure shares, if you did then your approach as far as hit and run would be correct.

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  13. dcth looks like a good one for next 6 months...

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  14. look at that move on HL.........

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  15. kli,

    On October there was a nice article on HL which talked about their actual resources:

    http://www.fool.com/investing/general/2010/10/28/a-solid-play-for-post-manipulation-silver.aspx

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  16. dj,

    When DCTH dropped to mid 5s I recommended to the board here to buy and hold and the main reason was the following:

    http://www.thecleverbull.com/articles/view/article/10/Delcath-Systems-NASDAQDCTH-a-breakthrough-in-the-cancer-treatment

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  17. Palmer I will buy on pullback thks for article..

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