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Thanks for playing but nope! It comes from Reminiscences of a Stock Operator.
Listening to the (repeated daily) advice of an old stager in the offices of Fullerton, it suddenly dawned on him why he was making less profit than he should. Whatever question the old fellow – known to everyone as Turkey although his real name was Partridge – was asked about the market, he would reply, “well, it’s a bull market.”
At first Livermore thought this was a mere platitude. Hearing “It’s a Bull Market” daily, he began thinking about it more. Then, listening to a conversation between Turkey and Elmer Harwood – a young trader – he realized that it was more than a platitude – it was the missing piece in his own education.
Elmer: “Mr. Partridge, I have just sold my Climax Motors. My people say the market is entitled to a reaction and that I’ll be able to buy it back cheaper. So you’d better do likewise. That is, if you’ve still got yours.”
Turkey: “Yes, Mr. Harwood, I still have it. Of course!”
Elmer: “Well, now is the time to take your profit and get in again on the next dip,” said Elmer, “I have just sold every share I owned!”
Turkey: “No! No! I can’t do that!”
Elmer: “Didn’t I give you the tip to buy it?”
Turkey: “You did, Mr. Harwood, and I am very grateful to you.
Elmer: And didn’t that stock go up seven points in ten days? Didn’t it?”
Turkey: “It did, and I am much obliged to you, my dear boy. But I couldn’t think of selling that stock.”
Elmer: “Why not?”
Turkey: “Why, this is a bull market!” (The old fellow said it as though he had given a detailed explanation.)
Elmer: “I know this is a bull market as well as you do. But you’d better slip them that stock of yours and buy it back on the reaction. You might as well reduce the cost to yourself.”
Turkey: “My dear boy, if I sold that stock now I’d lose my position; and then where would I be? And when you are as old as I am and you’ve been through as many booms and panics as I have, you’ll know that to lose your position is something nobody can afford; not even John D. Rockefeller. I hope the stock reacts and that you will be able to repurchase your line at a substantial concession, sir. But I myself can only trade in accordance with the experience of many years. I paid a high price for it and I don’t feel like throwing away a second tuition fee. But I am as much obliged to you as if I had the money in the bank. It’s a bull market, you know.”
Jesse Livermore realized that Turkey’s consistent message was that the big money was to be made not in trying to trade small moves on the tape but to catch the major trend.
“Nobody can catch all the fluctuations. In a bull market your game is to buy and hold until you believe that the bull market is near its end. To do this you must study general conditions and not tips or special factors affecting individual stocks. Then get out of all your stocks; get out for keeps! You have to use your brains and your vision to do this; otherwise my advice would be as idiotic as to tell you to buy cheap and sell dear. One of the most helpful things that anybody can learn is to give up trying to catch the last eighth-or the first. These two are the most expensive eighths in the world.”
With this step in place, Jesse Livermore’s trading philosophy was complete.
I was a bondtrader for more than 20 years. So, Bund,Bobl and Schatz is my natural habitat. ;-)
Since July 16 i gathered all my courage and started trading on my own. So far i enjoy making money for myself.
I like the freedom, trade whatever i want to trade and take the consequences when i was wrong and right. Mainly i want to learn. And trading opens up a tremendous universe.
I joined Big Mikes site searching for support for my adventure and i find it extremely helpful. I use TS and IB and try to program my experience from the last 20+ years. But i am just an old bondtrader and not a programmer. But i am willing to learn.
So, it will take some time till i am able to come up with some useful stuff.
I love to be a father of 3 little ones.
Hi, This is VijayNiftyTracker . . .I am an Equity Index Derivatives Trader. Good to be here. Hope I am able to add value to this group. Thanks n Regds.
Hello all. I have dabbled in trading for a while, stocks, options, but have been inconsistent for that while. I have made no progress. Finally, I decided I need to understand what the heck I was doing wrong as I was not making any profits to write home about. I started to educate myself via books, classes and webinars and had many "ah-ha" moments. I have made a commitment to myself to get better and disciplined with my trading as I truly LOVE this profession. Its the one constant thing that occupies my mind.
Right now I trade /YM, so I am looking for any posts/threads that focus on /YM.
My approach/setup/trade plan consist of the following...
Trading Plan Description
My trading plan is built around two concepts that exploit 'High Probability Moments in Time (HPMT). The two concepts are 'Price and Volatility Compression,' coupled with 'Multiple Time Frame Analysis' (MFTA). By combining these two strategies, the probabilities are stacked in the traders favor for the best possible outcome. The strategy has a set of rules to be observed to ensure the best possible outcome at a specific moment in time. The rules are designed to maintain optimized consistency and discipline within a mechanical trend trading system that takes advantage of these HPMT's.
It is these HPMT's that make this system incredibly easy to trade by removing the guess work out of entry an exit. The strategy takes advantage of unique and very specific moments in time when prices compress and align across multiple time frames. This strategy can be applied to any market as it does not trade markets. It is a chart indicator that identifies HPMT's in any market and exploits them. The system does not care which way the market goes, direction is irrelevant. With this system, you participate, you do not anticipate. That is the difference.
Testing: During testing of this strategy against the /YM Futures contract, it produced 11 winning trades from 12. A net profit of $1050.00 was realized from those trades over 3 days. The same strategy can be applied to any market. The market is irrelevant.
---Thank you for your time, looking forward to this journey.
I was a prop shop market making/vol trader for a while, on Nikkei/JGB futures/options for 3+ years.
Never really looked into futures day trading til now, as option trades are more fitting for funds than personal accounts where you're flexible enough to pursue significantly high returns. So now I'm here looking to improve, and participate in the community.
