Jesse Livermore’s Trading Rules Written in 1940
Jesse Livermore was one of the greatest traders who ever lived. You can read more about him here. Here are his trading rules written in 1940. You will find that many of them still apply today, proving that very little changes in the market over time. 1. Nothing new ever occurs in the business of speculating or investing in securities and commodities. 2. Money cannot consistently be made trading every day or every week during [...]
A Consistent Psychological Pattern In The Stock Market
There’s an amazing psychological pattern that keeps occurring in the stock market: 1) An event (usually with a finite date) is overly hyped up by the financial media. Keep in mind the media is not there to inform us, they exist to startle and scare us so they can sell ads. 2) Because the majority of the financial world is already horrified about a crash and is investing with one foot out the door, many [...]
Stock Market Reading List
As Jesse Livermore said: "Trading is not a game for the stupid, the mentally lazy, the person of inferior emotional balance, or for the get-rich-quick adventurer." In other words, to excel in the stock market, you have to work hard, have emotional control, and develop confidence in your strategy. I constantly get asked to recommend books that can help with these areas of trading. There are so many good ones out there, but here are [...]
To Improve Your Investing, You Have To Dedicate The Time
If you want to play golf, it’s pretty simple. Just book a tee time at a local course, rent some clubs and swing away. Sounds easy, right? Just because it’s easy, it doesn’t mean you’re going to be good at it. You still have to practice, put in the time, do post analysis of your game and continue to work hard at it. The same goes for investing. Getting involved in the stock market is [...]
Psychological Similarities to 2013
At the end of 2012, the financial markets experienced a very dramatic event: The Fiscal Cliff. Dramatic might be too strong of a word, but it seemed that way because we didn't stop hearing about it in the media. It was even the lead story on the national evening news every night for a week. Many investors and big hedge funds I spoke to were so frightened by the uncertainty around this event that they [...]
Yahoo Finance Interview: Bull Market Turns 8…Or Does It?
The financial media continues to say that this week is the 8 year anniversary of the Bull Market that began in March 2009. In this interview for Yahoo Finance, I explain why this is a NEW Bull Market that started in July 2016 and how we still have more room to go. I can be reached at: jfahmy@zorcapital.com