How Jesse Livermore Lost $1,000,000 on one Trade
Every day I am on the trend mill for close to a hour. I always want to maximize my time. I do not watch tv, I read.
Today I was reading Jesse Livermore’s Classic – How to trade in Stocks. Nothing really ever changes in the markets. It is all emotions.
Fear…Greed..Frustration etc..More so there is never a way to avoid whip saw trades. The case with Jesse Livermore was that he tried to buy cotton several times. Each time he lost a little bit of money. He tried the trade several times and exasperation set in. He told his clerk to take cotton off his watch list. He was tired of losing money in cotton. As luck would have it, cotton broke out and continued a strong move up. Since Jesse Livermore was not watching cotton, he missed the trade. Only after some time did he realize his mistake. He realized he would have made over $1,000,000 in that trade….
Points to realize…
1. You can never avoid losses
2. You must be consistent
3. You must make yourself available to all opportunities
4. Anything can happen..
If you need help with your trading psychology or methodology…lets talk. I have traded since 1994 and in the markets every day since.
Past performance is not indicative of future performance