First, why do you want to reread this book?
The fourth season of every year is my re-reading season, so I will choose some good books I have read before and reread them when necessary. The book I reread this year belongs to two extremes: foundation and technology. The old fisherman focused on the in-depth study of the company and never saw the report that he judged the market trend by stock price and volume. Livermore, on the other hand, focuses on tracking and judging the running direction of big markets, sectors or stock prices, and does not specifically study the fundamentals such as how companies make profits. Old Fisher is concerned about how to increase wealth from the value growth of the company he invested in, while Livermore is concerned about how to profit from the fluctuation of stock price.
Many years ago, I was also a science and technology enthusiast, addicted to Gann's law, Dow's theory and wave theory every day. After 2003, he turned to value investment, devoted himself to studying the investment methods of Buffett, Munger, Lynch, Templeton and other masters, and deeply studied the basic theories such as economics, investment science and company value evaluation, and established an effective rating and valuation system.
I read this book 20 10 years ago. What moved me at that time was that Livermore took out 50% of the funds from the market every year and locked them in the safe. At the same time, I also think Livermore's trading rules are simple and clear, and there is some truth. But I thought I had become a member of the value school. If you use a technical school again, it seems a bit deviant. In addition, Livermore, Gann and other speculative masters.
During the two years of 20 1 1 and 20 12, I was a firm fundamental investor, which made me gain something in the bear market. However, in the second half of 20 12, we began to review the investment diaries since 2004, feeling that both fundamentals and technologies have their inherent blind spots, and their respective disadvantages can just be compensated by each other's advantages. At the same time, when reviewing the reasons of several big bull stocks that were caught but not caught since 20 1 1, I suddenly found that although my rating system told me that these stocks were good, I kept waiting, hoping that they would be cheaper and fall to the opening price set before I bought them. But they didn't fall into my target range, so they rose and never looked back.
I realize that my skills in basic research in the company are still insufficient. Should I use crutches when the effectiveness of my investment system based on fundamentals needs further verification? Before that, he helped me build a technical tool and made great contributions. Their role is to help me judge the development direction of the overall market, sectors and individual stocks.
Repeat at the same time? Speculation book? There is also The Great Speculator written by Kosztolanyi, but unlike Livermore, Costes has not established (at least not completely published) its own technical rules. Costou's wealth depends more on speculative junk debt (former Soviet debt) and junk stocks (Chrysler, etc.). ) if others don't want it, they make money by being the opposite of fools.
Rereading this book touched me so much that I made an exception and read it twice in a row. The blank is filled with pens of various colors. After reading Old Fisher's How to Choose Growth Stocks and Livermore's The Greatest Trader in the World, I revised the investment rules again and sorted out the investment review list. I think reading these two books again is a great achievement of my 20 12.
Second, about the author.
1, version
There are many books about Livermore on the market, but they are almost the same after reading them. The three books I have about Livermore are "The Experience of Stock Trading"? Livermore price sniper equation, memoirs of a stock dealer, the greatest trader in the world? Jesse, the stock market player? The secret of Livermore's deal. Only The World's Greatest Dealer, which was studied word for word, inspired me deeply. I plan to study the memoirs of stock handwriting next year (it is said that this book was written after a long-term follow-up interview with Livermore, which is more true), and I hope to buy a biography about Livermore.
Like most books about Livermore, Livermore himself wrote a small book. The first part of this book was written by Jesse? Livermore wrote it at the age of 63 in 1940, accounting for 30% of the space (including the secret map). Richard made the rest? Schmidt added that the so-called supplement is to consult Livermore's private documents and Livermore's son Patrick? Livermore, Paul? After Livermore's dialogue, he rearranged and commented on what Livermore said, but there was nothing new except what Livermore wrote. The purpose of Schmidt's supplement is to formulate a set of? Livermore securities trading system? And profit through Livermore.
2. Livermore as a successful person.
Livermore was born on July 26th, 877 in Shu Ci, Massachusetts, USA. He is the only son of a pair of poor farmers. His father thought reading was useless and asked young Livermore to leave school and go home to do farm work. His mother supported Livermore to enter this world alone. So Livermore, 14 years old, came to Boston alone with $5, worked as a little brother in the stock market, and recorded the prices of stocks, bonds and commodities on the big blackboard for a long time. Livermore is naturally sensitive to numbers, and he found that price changes are usually predictable. He started speculative trading with $5 given by his mother, and soon accumulated to $65,438+0,000, becoming a young gambler.
When recording prices, do you really have a sixth sense to predict price changes? From my own feeling, it should be possible. I remember that around 1990, I was very interested in the psychological line index introduced in a book, but at that time, there was no market trading software, so I bought drawing paper. The next day, I manually animated the stock price, trading volume and psychological line chart according to the data provided by Securities News. I remember that after a period of persistence, my hunch that the market may change direction in the next few days is basically correct. Later, when the software was used, the information told by the trend chart was not carefully understood, and this sixth sense was much less. Why record the price of Livermore? Brother, can you have such a premonition? Apart from Livermore's sensitivity to numbers, it can be explained that he is recording, perceiving and understanding this market in a way different from others, and listening to Mr. Market carefully!
1907, Livermore, only 30 years old, shorted before the stock market crash and made a profit of $3 million! He could have earned more, but JP Morgan, a big banker, found him and hoped that he could give the stock market a chance to live, so he stopped. After this war, Livermore won? Wall Street Bear? Nickname.
He made $6,543.8 billion by shorting during the Great Depression.
Man Kun's Principles of Economics? Macroeconomics Volume P34? Dollar figures in different periods? Record America? The price index of 193 1 is 15.2, while in 2007 it was 207? I estimate that the US price index at 1907 should be only about 10, so the estimated $3 million of 1907 is equivalent to $6.210 billion in 2007, and 1929 is equivalent to10 in 2007.
Livermore's peak moment of life;
1907, after earning $3 million, Morgan asked him to let go of the stock market.
19 19, President Wilson invited him to the White House and asked him to liquidate cotton futures to save the country.
1929, Livermore's capital reached 1 100 million dollars.
Livermore's great success is the result of his own struggle. Livermore's success lies not only in the fact that he earned a huge sum of money, but also in the fact that Livermore left behind two books, which recorded his operating secrets to later generations almost unreservedly: Handwritten Memoirs of Stock and Master of Stock (the first half of this book).
3. Livermore as a loser
The climax of Livermore's life ended after the big bear market of 1929, when Livermore's capital reached 100 billion US dollars (equivalent to136 billion US dollars in 2007). Every time Livermore succeeds, it is followed by failure again and again, success again and again, failure again and again, which makes Livermore's money always come easy and go faster. It seems that Livermore has been doing useless things all his life. Why is this happening? What made Livermore fall from the king of speculation to shooting himself?
This book does not reveal the root of Livermore's failure. After reading a lot of information about Li and combining some details revealed in the book, I think that the failed Livermore betrayed the successful Livermore, and his success is inevitable, and so is his failure.