Jesse Livermore’s 12 Methods of Trading in Stocks

Jesse Livermore's trading methods

Book Review: Jesse Livermore’s Methods of Trading in Stocks

Pages: 44

This masterpiece contains articles written and compiled by my favorite trader Richard Wyckoff for his Magazine taken from interviews which he had with Jesse Livermore. Written in the year 1921, it a gold mine as it showcased the trading knowledge of these two trading legends.

The book starts with a quick introduction about the great Jesse Livermore. His two traits were Knowledge and Patience. He believed that Patience can outrun Knowledge in Stock markets in long runs.

This book covers all the most vital standards of fruitful stock trading rapidly and unmistakably:

How Jesse Livermore used to trade?
  1. Which kind of stocks did Livermore use to trade? Prefer to trade the Leading stocks of the strongest sectors and generally the market leaders?
  2. He believed that Stocks have seasons and you need to know which ones are currently in their trending season.
  3. His greatest strength was that he could easily anticipate future trends.
  4. He focussed on Getting plenty of sleep so that he could start fresh in the morning, He used to analyze news, study economics and stocks daily early morning.
  5. He believed in fundamentals and had a full comprehension of the current financial circumstance.
  6. He used to avoid disturbances from the outer world like telephones and replied very few emails. He used to Stay far from other individuals and impacts to keep his mind clear.
  7. He hated Tips and believed that to make big profits you have to hold stocks for longer price swings.
  8. He would give the ticker a chance to tape disclose to him what was truly going on gathering or appropriation. Beforehand he did his homework every morning and if his pre-market analysis varied from the price action on the ticker. He would simply admit his mistake and accordingly take the trading position.
  9. He used to trade only a stock with a possible 10 point swing trade coming with in the desired time.
  10. Cutting losing trades early. He used to cut out his position from the stock if it moves against his position 3 or 4 points.
  11. Averaged or Pyramid bought his wins, not his misfortunes. Adding to winning positions for the initial couple of focuses
  12. Remove stocks that are not climbing and purchase the present best prospect, kept his capital fluid and working.

His methods were simple but at the same time are most difficult to practice. In Short, Letting your profits run and cutting your losers early is what Jesse Livermore’s trading was all about.

Book Review: The Sink or Swim Money Program

The Sink or Swim Money Program: The 6 Step Plan for Teaching Your Teens Financial Responsibility

The Sink or Swim Money Program

This is a book review for The Sink or Swim Money Program: The 6 Step Plan for Teaching Your Teens Financial Responsibility.

With increasingly high debt becoming a bigger problem in families every year, it is more important than ever that parents teach their children to be financially responsible. While every child is different, and some can learn to be responsible with money at a younger age, parents should make sure to teach their teens how to handle money before they are in college or out on their own.

In The Sink or Swim Money Program, John E. Whitcomb takes parents through a 6 step plan for teaching teens how to be financially responsible.
In Mr. Whitcomb’s book, he takes a humorous look at teaching kids the value of money and making them responsible for their own money and purchases.

Here are a few of the ideas his book focuses on:
* Calculating a budget
* Work out a contract between you and your teen
* How to plan ahead

With this system, the main point is that the teens are given a set amount of money that is to cover their basic needs, that you would normally pay: food, clothing and other necessities. It is a trial and error method, where the kids are given free reign on their money and will quickly learn what they can and cannot do with it.
In addition to the lessons on spending, the book deals with planning for large expenses, such as college, cars, and insurance. It also includes sections on checking accounts, credit cards and tips on saving and earning extra money with lesson plans and sample contracts.

Teaching your kids about finance is very crucial. Money is not everything in life, however, a person works all his life for money. So, bringing in financial literacy and investment habits to your teens and kids is of importance. If you want to find whether your child can be a good investor or has a financially responsible attitude. You must read this article.

Trading for a living Book review

trading for a livingBook Review: Trading for a living

I would like to take just a moment today to talk about a book that I have mentioned several times in my lessons Dr. Alexander Elder’s book Trading for a Living: Psychology, Trading Tactics, Money Management

The Book is approx. 304 pages long and take approx… 4 to 10 days to read depending upon your reading speed and catching power. I personally completed this book last week in 4 days. Maybe because I had read this earlier :).

I feel the fact that in addition to being a practicing psychologist Dr. Elder actually trades himself allows him a special ability to weave the psychology of trading into all the other aspects which go into successful trading to create as complete a guide as I have seen on the subject.

In this book, you will learn not only about common psychological behaviors which destroy many traders, but also tactics for focusing your own mind in the right direction so you can avoid the common psychological pitfalls that destroy so many traders. In addition, Dr. Elder talks about how to read the overall mood of the market and looks at what things such as support and resistance, trends, gaps, and other chart patterns tell a trader about the psychology of the overall market at a given time. Continue reading “Trading for a living Book review”

Book Review Debt Proof Your Holidays

Book Review Debt Proof Your Holidays

debt proof your holidays

Each year, more people go into debt with their holiday spending. It isn’t just the gifts, but the decorations and meals as well.
Everyone wants to have a memorable holiday and make it special for all involved, but you don’t have to spend a lot to do so. There are many ways to have a wonderful holiday without breaking the bank. In Mary Hunts Debt Proof Your Holidays, she shares great tips for not only saving money but having a delightful holiday with your family and friends.

Gifts: When it comes to gift giving, people tend to go overboard thinking they have to spend more to prove they care more. This simply isn’t the case. Make changes as a family, and it will help everyone to spend less.
Make gifts instead of buying them – A handmade gift or card always means more.

Do not use credit cards – There are ways to purchase larger gifts and still avoiding the credit card trap?

Creative gift wrapping Instead of store bought paper and ribbons, make your own.

Decorating: There are many simple things that can be done to create a festive mood around the house. Making your own decorations or finding a good sale is only the beginning.
Use things you already have around the house.
Don’t buy all new decorations each year.
If you have to have “new things, buy them at after holiday sales.

Meals: Holidays and meals seem to go hand in hand with most families. In addition to overeating, we tend to overspend so create simple recipes and show within your budget.

Mary Hunt’s sense of humor, combined with her money saving tips, make this book a sure winner and a big help to those wanting to save money and still enjoy their holiday season.

 

About the Author

Mary Hunt is a self-affirmed improved prodigal and credit card addict. When she and her group of four wound up in $100,000 in the red and her better half all of a sudden lost his occupation, the time had come to fix the belt.

Declining to relinquish her personal satisfaction, Ms. Chase deliberately gives something to do each tip, trap, and method to turn her money related calamity around.

Making an interpretation of that experience into her tremendously well-known bulletin, The Cheapskate Monthly, Ms. Chase now discloses to all of you have to know to pivot your own funds for good.

Book review: Trading in the Zone

trading in the zoneBook review: Trading in the Zone

Trading in the Zone is an excellent book. I have finished reading Trading in the Zone fourth time and highly recommend the book as Mark explains why trading is so difficult and what approach you should use if you want to be successful. My only quibble with the book is that it would have been an even better book if it was edited properly. One of the favorite parts which I read today was where Mark explained why leaving money on the table is more painful than taking a loss. If you agree with the statement, you ought to buy the book and understand the psychology behind this effect.

Armed with this knowledge, I am going to give trading another shot. Before I place another trade, I am going to improvise my list of trading rules which I  follow.

Here are a few:

1. Define and accept the risk for each trade before I execute it. [The book explains what it means by ‘accepting’ the risk.]

2. Never trade without a stop loss in place. Depending upon the trade, I have decided to keep 5% as my maximum stop loss amount.

3. Never add to a losing position Continue reading “Book review: Trading in the Zone”

Few of the best trading books

Some best trading books

best trading books

I received quite a few requests to recommend some good technical books, especially on candlesticks. As you perhaps already know I use candlesticks and volume only. Simplicity is a beauty in trading. I do not use any oscillators, Elliot waves, Bollinger Band, Price channels, Andrews pitchforks. Fibonacci retracement etc… Not saying that those indicators are not good. I have heard that some traders are really good at using those indicators.
You do not think that you need to spend thousands of dollars to attend some seminars. I never did. The really useful stuff you need to spend money on some best trading books. Reading a few books alone is not enough. But it will make you prepared to practice trading. In summary, a few good books + extremely hard working = a successful trader. There is no shortcut. Do not attempt to look for it. There isn’t. Or everyone around you would be a trader.

Candlesticks

Originated from Japan. I heard that a Japanese trader took 100 trades using candlesticks alone. All were winners. That is a legend. You and I are not going to have that kind of accuracy in real trading. But I do think it is a very effective indicator. I included the book Candlestick Charting For Dummies. It is a good book for beginners. The best for people who already a little about candlesticks, is Japanese Candlestick Charting Techniques (the yellow one) by Steve Nison, which is a classic. Please read the reviews on Amazon.

Continue reading “Few of the best trading books”