Edwin Lefevre. Memories of a stock speculator
What is a classic? This is a book that has not lost its relevance for several generations. Are there any such books on Forex?
Hello, traders! My name is Jan Sikorsky, I am a trader at the Forex Academy. And today I want to tell You about the book "Memoirs of a stock speculator", which, in a sense, has become a real classic in Forex.
The book was first published in 1923. It survived the Great Depression, the world war, a dozen crises and financial panics. And every time I read it, I still find something new.
"...Wall Street will never change, capital and stocks will change, but not the market. Because human nature remains unchanged...”
This phrase was said by Jesse Livermore in the early 20th century. And as you read this book, you will see how right he was. 100 years have passed, and the market is exactly the same, but adjusted for technology. The book is literally steeped in stock market wisdom and is so good that it is difficult to choose the best example to quote. The following lines from the book pop up in memory:"...He never blamed the market for anything. It was completely illogical to be angry at an inanimate object, just as a gambler is angry at a deck of cards. He always wanted to learn from mistakes, and thus benefit from them. It is useless to argue with the market. The market is always right..."
"...Decades of experience, several splurges to zero, lost millions have taught Livermore to treat the market correctly. Therefore, even an experienced speculator will find something to learn in this book... " and the accuracy with which all the features of the stock trader's thinking are conveyed, the mistakes made, and the lessons learned clearly make this book timeless.
In terms of content, the narration comes from the face of Larry Livingston and is a fictionalized artistic biography of Jesse Livermore.
Larry started his career in the market at the age of 15. He worked as a clerk in a small bookmaker's office that accepted bets on rising or falling stock prices. Larry quickly learned to read the Telegraph tape that transmitted transactions made on the new York stock exchange. Later, he began to notice certain patterns in the market. Larry left his job as a clerk and started trading on his own. At first, he went to the same small offices and placed bets there. He won so much and often that they called him "young grip." Of course, there was a dark side to this success: after a while, they simply stopped letting him into such offices. And Larry was forced to go to new York and trade on the real exchange.
"...To learn what not to do, it is best to lose everything you have. Knowing what you don't need to do to avoid losing money, you start learning what you need to win. The one who understood this has already begun to learn...»
After arriving in new York, Larry repeatedly lost his entire fortune, after which he found the strength to get up and continue doing his job. Therefore, the book will also help you learn how to survive bad times.
“...The hope that the stock market will pay your bills is the most common cause of losses. There isn't a person on wall Street who hasn't lost money trying to make the market pay for a car, a motorboat, or a painting...”
Those problems that you are currently facing in the market, someone has already passed, so this book will help you not to make common mistakes.
"...The average person does not want to know what the market is today — bears or bulls. He wants to be told which stocks to buy or sell. He wants to win without taking any risks. He doesn't want to work. He doesn't even want to think. Even counting the money he picks up under his feet is a burden to him...»
Although the word "game" is often used in the book, as you read it, you will see how passionate and meticulous Livermore was about his work. And you will understand that trading is primarily a job, not a game of chance.
At all times, people have operated in the market in the same way, driven by greed, fear, ignorance, and hope.
Decades of trading experience and extreme observation allowed Livermore to understand the true reasons that make people make certain decisions in the market.
Therefore, after reading the book, You will better understand the reasons for price fluctuations.
In conclusion, it is worth saying that this is the best book I have read on the subject of financial markets.