If you're looking for some trading advice, you might want to take a look at the words of Jesse Livermore. He was one of the most successful traders in history, and he had a lot to say about the markets. This is why we have dedicated this article to the best Jesse Livermore quotes so that you can learn from this iconic trader.
In this blog post, we will be going over some of his best quotes on trading and investing. We'll also be discussing what made him so successful, and how you can apply his teachings to your own trading strategy.
Jesse Livermore quotes on trading
When it comes to trading, Jesse Livermore had a lot of wisdom to share. He was a very successful trader, and he had a lot of experience in the markets. Here are some of his best quotes on trading:
1. “Trade only when the market is clearly bullish or bearish.”
2. “Buy rising stocks and sell falling stocks.”
3. “Not taking the loss, that is what does damage to the pocketbook and to the soul.”
4. “I must buy on a rising scale. I don’t buy long stocks on a scale down, I buy on a scale-up."
5. “A stock operator has to fight a lot of expensive enemies within himself.”
6. “No person can play the market all the time and win. There are times when you should be completely out of the market, for emotional as well as economic reasons.”
7. “He must fear that his loss may develop into a much bigger loss, and hope that his profit may become a big profit. It is absolutely wrong to gamble in stocks the way the average man does.”
8. “There is only one side to the stock market; and it is not the bull side or the bear side, but the right side.”
9. “... for when I am wrong only one thing convinces me of it, and that is to lose money. And I am only right when I make money. That is speculating.”
10. “The nature of the game as it is played is such that the public should realize that the truth cannot be told by the few who know.”
11. “Only enter a trade after the action of the market confirms your opinion and then enter promptly.”
12. “It is foolhardy to make a second trade if your first trade shows you a loss. Never average losses. Let this thought be written indelibly upon your mind.”
13. “Successful trading is always an emotional battle for the speculator, not an intelligent battle.”
14. “The only thing to do when a person is wrong is to be right, by ceasing to be wrong. Cut your losses quickly, without hesitation. Don’t waste time.”
15. “If you don’t know who you are, then the stock market is an expensive way to find out.”
16. “The finest art is not to lose money. Making money in the stock market can be done by anybody.”
17. “Profits always take care of themselves but losses never do.”
18. "It isn't as important to buy as cheap as possible as it is to buy at the right time."
19. “I call a Pivotal Point before I started to trade; I have always made money in my operations.”
20. “Losing money is the least of my troubles. A loss never troubles me after I take it. I forget it overnight...”
21. “As long as a stock is acting right, and the market is right, do not be in a hurry to take profits.”
22. “The highest profits are made in trades that show a profit right from the start” 23. “No trading rules will deliver a profit 100 percent of the time”
What we can learn from Jesse Livermore's quotes on trading
Jesse Livermore was a professional trader who made a lot of money in the stock market. From Jesse Livermore's quotes, we can learn that:
It is important to have a clear opinion of the market before entering a trade
This means that you should do your own research, and have a clear idea of where the market is headed before making a trade.
Entering and exiting trades promptly is important
If you are wrong about a trade, it is important to exit quickly and cut your losses. Livermore also emphasizes the importance of taking profits when they are available.
It is important to have discipline in trading
This means sticking to your trading plan, and not letting emotions get in the way of your decisions.
The stock market is an expensive way to find out about yourself
This means that you should be sure of your own abilities and risk tolerance before investing in the markets.
Making money in the stock market is not easy
There will be times when you lose money, and it is important to accept this fact and not let it discourage you from trading.
The most important thing in trading is not to lose money
This means that you should always focus on protecting your capital, and not letting losses spiral out of control. You can use stop losses and other risk management tools to help with this.
Even the best traders have losing trades
There is no such thing as a perfect trading system, and everyone experiences losses at some point. What separates the winners from the losers is how they handle these losses.
These Jesse Livermore quotes above provide some valuable insights into the world of trading. By following his advice, we can improve our chances of success in the markets.
How to apply Jesse Livermore's teachings to your own trading strategy
As a trader, it is important to be able to form opinions about a trade and verify through trends. To do this, you should analyze the market conditions and form an opinion about where the market is headed. Some ways to analyze trends and market conditions are through the use of technical indicators, such as moving averages and support and resistance levels.
Remember that as a trader, you are entering and exiting positions frequently. If you are wrong about a trade, it is important to exit quickly and cut your losses. Livermore also emphasizes the importance of taking profits when they are available. Don't get greedy and try to hold on to a trade for too long, or you may end up giving back all of your profits.
It is also crucial to have discipline in trading. This means sticking to your trading plan, and not letting emotions get in the way of your decisions. Using a trading journal or diary can help you to stay disciplined. Another way to stay disciplined is to have set rules for your trading.
You should be sure of your own abilities and risk tolerance before investing in the markets. If you aren't self-aware, you run the risk of making costly mistakes. To gain self-awareness as a trader, you can keep a trading journal and track your performance over time.
As you can see, trading doesn't have to be difficult if you apply timeless wisdom to your strategy. Jesse Livermore's quotes can help you to trade smarter and improve your chances of success in the markets. Let's keep exploring some more specific strategies in the next section.
Jesse Livermore quotes on trading strategy
Trading strategies can vary among the top professionals. By reading quotes from the top traders, we can get an insight into their different approaches. Here are some of Jesse Livermore's best quotes about trading strategy.
23. “There is nothing new in Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again.”
24. “Markets are never wrong – opinions often are.”
25. “I don’t know whether I make myself plain, but I never lose my temper over the stock market. I never argue with the tape. Getting sore at the market doesn’t get you anywhere.”
26. “The worse a situation becomes, the less it takes to turn it around, the bigger upside.”
27. “Patterns repeat because human nature hasn’t changed for thousands of years.”
28. “... my game was to anticipate what was going to happen in a big way.”
29. “I had to study what was going to happen; to anticipate stock movements. That sounds asininely commonplace, but you know what I mean.”
30. “What beat me was not having enough brain to stick to my own game. There is a Wall Street fool, who thinks he must trade all the time.”
31. “If you can’t sleep at night because of your stock market position, then you have gone too far. If this is the case, then sell your position down to the sleeping level.”
32. “Big money is made in the stock market by being on the right side of the major moves. I don’t believe in swimming against the tide.”
33. “In a bull market and particularly in booms the public at first makes money which it later loses simply by overstaying the bull market.”
34. “All through time, people have basically acted and re-acted the same way in the market as a result of greed, fear, ignorance, and hope"
35. “You will reap benefits from their mistakes.”
36. “He will risk half his fortune in the stock market with less reflection than he devotes to the selection of a medium-priced automobile.”
37. “If a man didn't make mistakes he'd own the world in a month. But if he didn't profit by his mistakes he wouldn't own a blessed thing”
38. “It is not good to be too curious about all the reasons behind price movements.”
39. “Go long when stocks reach a new high. Sell short when they reach a new low.”
40. “Never buy at the bottom, and always sell too soon.”
41. “Don’t take action with a trade until the market, itself, confirms your opinion. Being a little late in a trade is insurance that your opinion is correct. In other words, don’t be an impatient trader.”
42. “End trades when it is clear that the trend you are profiting from is over”
43. “Never average losses by, for example, buying more of a stock that has fallen”
44. “Don’t become an involuntary investor by holding onto stocks whose price has fallen”
45. “Never buy a stock because it has had a big decline from its previous high”
46. “It is much easier to watch a few than many”
47. “In any sector, trade the leading stock – the one showing the strongest trend”
48. “Never sell a stock because it seems high-priced”
Jess Livermore's quotes on trading strategy: How To Apply Them
Now that we've looked at some of Jesse Livermore's best quotes on trading strategies, let's explore how we can apply them.
When it comes to trading strategy, the most important thing is to have a plan and stick to it. This means being disciplined and not letting emotions get in the way.
Jesse Livermore expressed this lesson with the quote: "The worse a situation becomes, the less it takes to turn it around, the bigger upside." This is why it's so important to have a plan and not give up when things are tough.
Another important aspect of trading is to always be learning. This means keeping up with the latest news and developments in the market. It also means being willing to experiment and try new things.
As Jesse Livermore said, "Patterns repeat because human nature hasn't changed for thousands of years." By understanding this, we can take advantage of market cycles and make money even when the market is down.
Do not become overwhelmed by adding hundreds of stocks to your watchlist. This is because “It is much easier to watch a few than many”. If you only focus on a few stocks, you will be able to better monitor them and make informed decisions.
When it comes to taking profits, Jesse Livermore said "Never sell a stock because it seems high-priced." This is because the market can always go higher and you don't want to miss out on potential profits. Instead, wait for the market to confirm your opinion before selling.
Jesse Livermore also shares the concept of “catching a falling knife”. This means that you should never buy a stock that is declining in price. By doing so, you may keep buying a stock that is destined to continue falling. Instead, wait for the trend to reverse before buying.
Finally, it's important to always be prepared. This means having cash on hand to take advantage of opportunities when they arise. Remember this quote next time you have conviction in a market trend: "Big money is made in the stock market by being on the right side of the major moves."
By following these strategies, you can put yourself in a position to make big profits in the stock market. Jesse Livermore's trading strategies will be sure to help you on your own journey to becoming a successful trader.
Jesse Livermore quotes on patience
Many long-term investors preach the importance of patience. It may be surprising to see a short-trader express the same sentiment, but Jesse Livermore was a big believer in being patient.
49. “Do not anticipate and move without market confirmation—being a little late in your trade is your insurance that you are right or wrong.”
50. “Money in a broker’s account or in a bank account is not the same as if you feel it in your own fingers once in a while. Then it means something.”
51. “To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.”
52. “There is time to go long, time to go short, and time to go fishing.”
53. “It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance.”
54. “It took me five years to learn to play the game intelligently enough to make big money when I was right.”
55. “There is nothing like losing all you have in the world for teaching you what not to do.”
56. “But careful timing is essential… impatience is costly.”
57. “If I hadn’t made money some of the time I might have acquired market wisdom quicker.”
58. “I had a hard time convincing her (my mother) that I was not gambling, but making money by figuring.”
59. “Experience has proved to me that real money made in speculating has been in commitments in a stock or commodity showing a profit right from the start.”
60. "The human side of every person is the greatest enemy of the average investor or speculator"
61. "Wishful thinking must be banished"
62. “Big movements take time to develop”
Why patience is important for trading
If you want to be a successful trader, it is important to be patient. Many novice traders make the mistake of trying to anticipate the market. This often leads to them making poor decisions and losing money.
It is important to wait for the market to confirm your opinion before taking action. This way you can avoid making costly mistakes. It is also important to be prepared and have cash on hand to take advantage of opportunities when they arise.
Jesse Livermore also shares how important it is to be patient with yourself as you learn to trade. It took him five years to learn how to trade intelligently and make big profits. It's even more difficult to remain patient and keep practicing when others are criticizing you. However, you have to experience losses to learn from them and become a better trader.
If you are patient, you will be in a much better position to make money trading stocks. By following Jesse Livermore's advice, you can put yourself on the path to becoming a successful trader. Patience is key when it comes to both long-term investing and short-term trading.
Jesse Livermore quotes on tips
Have you ever received a hot stock tip? These tips are often given with the best intentions, but they can often lead to bad decisions. Jesse Livermore was against following tips, and for good reason.
63. “... what he desires is to be told specifically which particular stock to buy or sell. He wants to get something for nothing. He does not wish to work. He doesn’t even wish to have to think.”
64. “If there was any easy money lying around, no one would be forcing it into your pocket.”
65. “It is what people actually did in the stock market that counted – not what they said they were going to do.”
66. “The game taught me the game. And it didn’t spare the rod while teaching.” 5. “Copper your customers, and grow rich.”
67. “The stock market is never obvious. It is designed to fool most of the people, most of the time.”
68. "A man must believe in himself and his judgment if he expects to make a living at this game. That is why I don’t believe in tips."
Education and experiences are better than hot stock tips
Thinking for yourself is a common theme among the best investors and traders. This is because tips are often given with ulterior motives. The person giving the tip may be trying to manipulate the market or they may simply not know what they're talking about.
Jesse Livermore believed that taking advice and trading blindly based on it was intellectually lazy. If making money in the stock market was easy, everyone would be doing it. The only way to succeed is to educate yourself and make your own decisions.
He also comments on how even if there are clear opportunities to make money with a trade, most won't take it. This is because the average trader needs someone to copy and follow. They don't want to put in the hard work to research and make their own decisions.
Many influencers in the trading industry will also say they are doing something but in reality, they are doing the opposite. Jesse Livermore says to pay attention to what people actually do rather than what they say.
It is important to do your own research and come to your own conclusions. This way you can avoid making costly mistakes. Jesse Livermore learned this the hard way. He often followed tips and lost money as a result.
By using your best judgment and not relying on other people's opinions for every trade, you can become a successful trader. Of course, that does not mean you can't be inspired and learn from others. But at the end of the day, you have to make your own decisions.
Jesse Livermore's sitting quote
Sitting on your hands is a common term in the stock market. It means to wait for the right opportunity before buying or selling a security. Jesse Livermore was a fan of this strategy and used it often.
69. “It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!"
70. “Men who can both be right and sit tight are uncommon. I found it one of the hardest things to learn...”
71. “The market does not beat them. They beat themselves, because though they have brains they cannot sit tight.”
'Sitting' explained by Jesse Livermore
The concept of sitting tight for Jess Livermore meant to have conviction in your trade and not to second-guess yourself. Once you make a decision, stick with it. Many traders make the mistake of getting out of a trade too early or holding on to a losing trade for too long.
If you have done your research and are confident in your decision, sit tight and let the trade play out. Overthinking trades is a common mistake and one that Jesse Livermore himself struggled with.
One of the hardest things to do in trading is to sit on your hands and wait. It takes discipline to stay in a trade when the stock is moving up. By waiting for the trend to continue, you can maximize your profits. You should take profits, but you don't need to jump out of your position if the trend is just beginning.
Sitting tight also means that you do not have to be trading all the time. Jesse Livermore believed in sitting on the sidelines until there was a clear opportunity. This is why he was such a successful trader. He waited for the perfect setup and then took advantage of it.
While it may be tempting to trade all the time, it is important to remember that not every stock is a winner. Sometimes the best thing you can do is sit tight and wait for the right opportunity.
What was Jesse Livermore's strategy?
Livermore's greatest strength was his ability to sit tight. He understood that not every trade was a winner but as long as he stuck to his strategy and kept his losses small, he would eventually come out ahead.
We live in a world where we are constantly bombarded with information and it can be overwhelming. It is important to take some time to process all of the information and make sure that you understand it before moving on. His strategy was to focus on a few stocks that he knew well and to always have a stop-loss in place.
People tend to get caught up in their own opinion and forget that the market is always right. You need to be able to separate your opinion from the facts to be a successful trader. Following the crowd was not a part of Livermore's strategy. In fact, he often did the opposite of what everyone else was doing and it paid off.
Another strategy Jesse Livermore implemented was to buy low, sell high and never buy dips on the way down. This may seem like common sense but it is often overlooked in the heat of the moment.
Self-awareness was also a large part of his trading strategy. This is because, without it, you will never know when to exit a trade. It is better to take a small loss than a large one. The experience was something that Livermore valued and he was always learning from his trades.
One of the most important things that Livermore did was to always stay disciplined. He knew when to walk away from a trade and when to stay in. Through experience, he learned to control his emotions and not let them influence his trading.
The bottom line is that you need to have a plan and stick to it. Do not let your emotions get the best of you. Be patient and always be learning. If you can do these things, you will be well on your way to success.
What is Jesse Livermore's best quote that summarizes his trading strategy:
"The game of speculation is the most uniformly fascinating game in the world. But it is not a game for the stupid, the mentally lazy, the person of inferior emotional balance, or for the get-rich-quick adventurer. They will die poor."
The lesson from this quote is that trading is an emotionally intensive activity and you need to be able to control your emotions to be successful. This is something that Livermore was able to do throughout his career. It's not for those that are unwilling to learn and it is not something that will make you rich overnight.
Often people will play the game of speculation as a form of gambling. That's why his mother was worried his fascination with trading was developing into an unhealthy habit. However, by applying sound trading principles, Jesse Livermore was able to develop a successful trading career.
Jess Livermore's quotes promote the importance of experience and learning from your mistakes. It takes many years to become a master trader but it does not have to be a miserable experience. He often refers to trading as a game. This is interesting because it changes the perspective from one of stress to one of excitement.
By shifting your mentality from a need to trade and make money into one of excitement and fun, you are more likely to make better decisions. This is because you are not under as much pressure and you can think more clearly. Stress can cause poor decision-making and lead to large losses.
When you are playing a game, you are more likely to take risks. This is something that can be beneficial in trading. You need to be willing to take risks if you want to make money. However, you also need to know when to walk away from a trade. Games can be fun, but if you play them too often, they can become an addiction.
To summarize Jesse Livermore's strategy, he focused on a few stocks, always had a stop-loss in place, and bought low and sold high. He was also willing to take risks but knew when to walk away from a trade. Lastly, he always stayed disciplined and had fun with his goals.
Conclusion
When it comes to trading, Jesse Livermore is one of history's most renowned and successful traders. He made and lost several fortunes throughout his career but always managed to come out on top in the end.
Jesse Livermore's quotes are as relevant today as they were when he was trading. This is because human nature does not change. People will always be emotional and make poor decisions when they are under pressure. You can always read some of Jesse Livermore's books on trading that will help you become a better trader.
