Jesse Livermore Says Sit

This is the fourth in a series of articles starting with the article of October 9, 2006 entitled “You Can’t Hurry Love or Winning Trades”.

The second type of waiting is waiting to exit an open position.

“Let your winners run” is half of the golden rule of trading.

In the famous book entitled Reminiscences of a Stock Operator, the author (in writing about Jesse Livermore) says “After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!

It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I've known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level, which should show the greatest profit.

And their experience invariably matched mine -- that is, they made no real money out of it.

Men who can both be right and sit tight are uncommon.

I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make big money. It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance.”

Next week, I’ll chat about how to “sit” on a profitable position.

We'll chat again soon ...

Copyright 2006 Raymond T. Lee. All rights reserved.
Leisurely e-Mini Futures Trading
eMail me Comments