Livermore Jesse Lauriston - How to trade in stocks: his own words: the Jesse Livermore secret trading formula for understanding timing, money management and emotional control

His own words: The Jesse Livermore
secret trading formula for understanding
timing, money management, and emotional control

Jesse Livermore

Added material by:
Richard Smitten

Copyright 2001 by Richard Smitten. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a data base or retrieval system, without the prior written permission of the publisher.

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TimingUnderstanding Industry Group Action

(TDT) Top Down Trading

(TT) Tandem TradingSister Stocks

(RPP) Understanding Reversal Pivotal Points

(CPP) Evaluating Continuation Pivotal Points

(S) Spikes

(ODR) One Day Reversals

(BONH) Breakout on a New High

(BOCB) Breakouts From a Consolidating Base

(V) Understand Volume

Stocks Have Personalities

(MM) Five Rules of Money Management

Avoid Cheap Stocks

Insider Action

Establish Profit Target

Establish Stop Before Trading

Time is a Trading Dimension

Livermores Method of Pyramiding

General Comments

How Livermore Prepared His Day

His Special Office Arrangement

Insider Trading

Master Minding the Media

Cut LossesLet the Winner Ride

The Will

Beware of Stock Tips

Independent Addendum: Livermore Secret Market Key: Printed exactly as 1940 edition.

This book is for my mother, Frankie Smitten. A woman of great courage, patience and wisdoma great human being.

My mother adds the final ingredient, her great love.

Richard Smitten

I would like to thank Patricia Livermore and Paul Livermore for their kind help and counsel in writing this book. I would also like to officially thank my father, Louis Smitten for all his expert help. And my best friend Gordon Badger for his always sage advice on all subjects.

Teresa Darty Alligood deserves the strongest thank you for her great job of single-handedly producing and editing the book. She also designed the cover, which I think is outstanding.

And thanks to Edward Dobson, president and publisher of Traders Press, Inc. for his unyielding belief in Jesse Livermore and his methods of trading the market. We both concur that Jesse Livermore was a stock market Master who can teach us much about the markets of today.

And most importantly to Jesse Livermore for originally writing this great book in 1940, a book that is just as valid today as the day it was written.

Wall Street never changes, the pockets change, the stocks change, but Wall Street never changes, because human nature never changes.

Jesse Livermore

Thank you Jesse Livermore, for your wisdom, hard work, and your high intelligence. And your never ending quest to learn the ways of the stock market.

Richard Smitten

This classic book, How To Trade in Stocks, was written by Jesse Livermore, and is in his original words, with additional comments and updates by Richard Smitten.

In this book, there are numerous secrets revealed on Livermores trading techniques, never before disclosed. The secrets come from extensive interviews with the Livermore family, Livermores private papers, and intimate conversations with Paul Livermore, Livermores son, who had never before spoken of his father. These personal insights were invaluable in understanding Jesse Livermore the man, and the trader.

In every human field of endeavor there are only a few individuals who tower over other men and women: Albert Einstein, Henry Ford, Thomas Edison, Louis Pasteur, Madame Curie; in athleticsBabe Ruth, Michael Jordan and Tiger Woods. Why does the individual often succeed in making landmark breakthroughs, and not the group. This remains an unanswered mystery.