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We’ll learn from Jesse Livermore, who many people feel was the greatest stock trader that ever lived. Bernard Baruch, became a partner at his brokerage firm by age 25 and a multimillionaire by age 33. Nicolas Darvas was a professional dancer. Even as he did the cha-cha he made about $2 million utilizing his famous Darvas Box strategy. These are just a few of the pioneers we’ll cover.
The realizations these traders found:
- People who play the stock market as an easy get-rich-quick method are doomed.
- Trading is a full time education. Your mistakes are your lessons. And tuition can be expensive. You must analyze what went wrong.
- Keep a percentage of your winnings in a cash reserve. Never bet the farm. You could end up in the hen house.
- Cut your losses. If your stock drops by 8% sell it. Read Bernard Baruch’s quote up above. You could be right only 30% of the time and still make money.
- Buy high and sell higher. If a stock is steadily declining, it’s not a bargain…its garbage. A stock’s price movement is predominantly affected by the institutions on Wall Street. If they don’t like a stock, you shouldn’t like it either.
- A sinking tide (aka The Dow) sinks all boats (the stocks).
- It’s ok to sit it out. As Jesse Livermore said "...money is made in the sitting. Not the buying and selling.
With that being said, grab your topcoat, walking stick and top hat. We’re going back to the beginning and meet some of the greatest stock traders on Wall Street.
The Godfathers of Trading
Read About Jesse Livermore Possibly The Greatest Trader Ever
Read About Bernard Baruch Trader, Speculator, Big Wig
Read About Nicolas Darvas Wall Street's Best Dancer
Read About Benjamin Graham The Intelligent Investor
Read About William ONeil He CAN SLIM Wall Street
From Founding Stock Traders to Home Page
