Trader's Bible - Review of the book "Stock trader's memories" by Edwin Lefevre

Jessie Livermore's biography is one of the most famous biographies among speculators. His figure undoubtedly belongs to the group of traders who, in the history of the stock exchange, deserved spectacular results. Sometimes it feels like their stories are like movies about lucky people who made a fortune from scratch. Coming back to reading, it tells the story of Larry Livingsotna (actually Jessie Livermore) in a very accessible (not typically historical) way.

Be sure to read: Like Jessie Livermore, he made money from falls

"History repeats itself over and over on Wall Street"

The above quote, of course, comes from Edwin Lefevre's book. I think that I could be tempted to say that this is a guiding thought of the work. Despite the fact that the history contained in it describes market mechanisms, methods and rules of speculation of individual traders, the ways of earning and manipulation from the turn of the 19th and 20th centuries thanks to a light and pleasant narration are very accessible to the reader. Contrary to appearances, the events described there are very important in the transfer to the current market, which has changed since Livermore (not only in terms of turnover, but even new financial instruments).

Buy too late and sell too early

Let's not set ourselves on the fact that the book will find a recipe for successful and profitable transactions. Very often it will be possible to find in the author's thoughts about his lossy games. In my opinion, there are really many valuable remarks and tips about even proverbial buying in holes and selling at the tops. What's more, the investment made by the main character is not an investment of a typical Nowak or Kowalski. The sums used by the titleist Larry Livingston created the price on the market. The capital he traded moved companies by several dozen percent up or down. As he repeatedly admitted, he manipulated the price.

What can not we learn from the book?

From this position, we certainly will not get a ready strategy for the investment and we will not find out which one is the most effective. We will take out two very important issues from the stock market player's memories. The first is the market approach. Regardless of what methods we use, the approach itself is still extremely important. The strategy or the randomness of transactions is not important. The quintessential approach to the market (and at the same time books) everything we do is reflected in our capital. The main character emphasizes that greed is connected with paying for the privilege of learning, which he experienced in this way. In Edwin Lefevre's work, it is in vain to look for methods that would allow us to win the market. On the contrary, we will get a kind of reprimand that it can not be done and it is not worth trying.

Book "Memories of the stock market player" in my opinion it is a timeless work that is called the Trader's Bible for a reason. In an accessible way clarifies the picture of what approach we should treat entering into transactions on the market.