Jesse Livermore Quotes

There is only one side of the market and it is not the bull side or the bear side, but the right side.

The market is like a language, and you have to be able to understand what they're saying.

What you will be looking for is a day that closes above the prior day's high and most likely 'breaks' out to the upside to close above a trading range. This is the twitching worm that causes the public to leap before they look.

I think the works of W.D. Gann and Robert Prechter have inspired me more than anyone else. It was from their writings that I discovered cycles, patterns, and psychology dominate the market, and that the news breaks with the cycles, not the other way around.

When stock prices are rising, it's called ''momentum investing''; when they are falling, it's called ''panic.''

For some reason, people take their cues from price action rather than from values. What doesn't work is when you start doing things that you don't understand or because they worked last week for somebody else. The dumbest reason in the world to buy a stock is because it's going up.

He really meant to tell them that the big money was not in the individual fluctuations but in the main movements that is, not in reading the tape but in sizing up the entire market and its trend.

Speculative stock movements are carried too far in both directions, frequently in the general market and at all times in at least some of the individual issues.

Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it.

There's no statistical evidence that human beings have an ability to move in and out of the markets effectively. It's next to impossible.

Everybody thinks that they're going to time the market, they're going to sharpshoot the market, and buy right at the bottom. The truth of the matter is that nobody is good at it.

The next time you see an outside day with a down close lower than the previous day, don't get scared, get ready to buy!

Tape reading is a lost art that today is not very useful.

What about stocks? You got to buy them. What if they break? You have to buy the dips.

Market timing doesn't work. If all the bubbles and all this mispricing really exist, how come so few people see it before it turns out that way?

There are two ways to approach the market. You can guess which direction prices will go in next, or you can figure out what businesses and their securities are really worth.

Part of the game of investing is to come into your own. You must find some way that perfectly fits your personality because there is some element of a zero sum game in investing. If you buy, somebody else has to sell. And when you sell, somebody has to buy. You can't both be right.

Basically, what I do is place a stop, generally 10 to 20 percent below the current price, whenever I buy a stock. The exact level depends on my own analysis of a stock's trading pattern. If a stock violates this stop, I'm out.

Big money is made in the stock market by being on the right side of the major moves. The idea is to get in harmony with the market. It's suicidal to fight trends. They have a higher probability of continuing than not.

The problem with most people who play the market is that they are not flexible.

I've explained before the power psychology has on the markets.

A bull market is like sex. It feels best just before it ends.

In the short run, the market is a voting machine, but in the long run it is a weighing machine.

I never hesitate to tell a man that I am bullish or bearish. But I do not tell people to buy or sell any particular stock. In a bear market all stocks go down and in a bull market they go up.

If you knew what was going to happen in the economy, you still wouldn't necessarily know what was going to happen in the stock market.