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Forever LIVERMORE Powered By Docstoc
					Forever LIVERMORE
Reposted elsewhere: Forever LIVERMORE
February 22, 2009 Sunday 22:25
July 26, 1877, Jesse. Lee Buddha Mount (Jesse Livermore) was born in
Massachusetts, lived in poverty, his father in New England and the days of struggle,
the farm for a living. Lives can not satisfy the young Jesse. Father wanted him to drop
out of school, inherited his father's only 14 years old, he decided to leave
emigrated. He left for Boston, pockets filled with mother only a few pieces of money.
His Pan Weibo Company (Payne Webber) to find a copy blackboard errands, wages
were low, only receive six dollars per week. Pan Weibo staff employed market closed,
sitting in operating room, closed the machine's stock market quotes come
in, you have to tear apart his voice shouted as soon as possible. Buddha Lee
Mount's new work is a quote heard shouted, and quickly the digital copy in
large blackboard. Blackboard covered with the brokerage firm of the wall.
Lee Buddha Morocco in school mathematics have been very good, Wall
Street's offer price, just match up, where possible potential. His genius,
digital Never forget, like a photo-like bearing in mind the mind. In fact, a child in
school, he finished the year on a three-year mathematics course. He will take
advantage of the Pan Weibo work, and remember all the stock price and code. He ran
like a thirsty horse spring-like, greedy market study, preoccupied staring offer tape.
He also began taking notes, the copy number of the board when copying it down and
soon found, which have some type of leap off the paper. He was like a diary-like
notebook to record thousands of document price changes, engrossed reading them,
looking for those special types. Thus, only 15 years old Mount Lee Buddha, has
carefully considered the type and price changes in stocks. "Job
training" so that he witnessed inside the stock market trading activities, and
how people participate in the market. He noted that the behavior of most chaos as they
fight, not according to certain rules or established plans to do, is not willing to make a
greater effort and its trend in the stock market, so investment in the stock market sure
His first deal was done with friends. They scrape together five dollars, to buy Braun
Dayton (Burlington) stock, because the Buddha Lee Mount's friends think
the stock will rise. Securities in a shell (bucket shop, 译注: shell dealer is dishonest
and did not register the securities broker, using customer funds, speculative buying
and selling stocks and commodities, or accept customer orders the sale, but did not
through the stock exchange) trading orders. Shell securities are suitable for taking a
little money to speculation. Basically stock speculators bet the next step where to go.
In other words, this is a very short-term operation. You do not really have the stock to
takes the plunge, but if stock prices against you, paid with 10%, you would have been
decapitated fate. This amounts to the implementation of 10% margin requirement. Lee
Buddha Mount therefore a habit, most of his career when in operation, must abide by
a strict code of appearance of indemnity. With the passage of time and accumulated
experience, he next level, the loss can be less than 10% of the time, the drastic
appearance of indemnity.
Before investing lark Patton, Lee Buddha Mount checked his notebook and read its
recent trading patterns, I believe the price must rise. So, when he was 15 years old the
first time stock trading, and last assigned to 3.12 U.S. dollars of profits.
He continued to shell securities transactions. 16 years old, earned money by trading
stocks, has more than Pan Weibo to his salary. Earned 1,000 U.S. dollars until he quit
work, dedication and securities trading stocks in the shell.
Lee Buddha Mount earned a lot of money, damage to the shell dealer profits,
two-year-old that year, Boston and New York shell securities are issued off-limits to
permit him to approach the sale (but he is still involved in two round-trip securities to
the shell, if found in certain cities, they jump to another city to operate). As the
operation is very successful, called him a "workaholic" (The
Boy Plunger). Dealers do not want to shell something to do with him, but do not want
to see him winning operation practices, from their numbers continue to put money
Taozou child.
Mount smug Lee Buddha, decided to go to New York, New York Stock Exchange
operator (New York Stock Exchange) traded stocks. After all, there is a vibrant place
of heroes, he is prepared in this vast world of teeing off. He chose to open a brokerage
account, with 2,500 dollars as capital. Securities firms operating in the shell before the
stock account once the funds up to one million.
Finally slowly paid with the profits earned, tasted the bitterness Mount Lee Buddha,
and finally operation may not have been so easy to know. So, he began to analyze
what they have committed an error, resulting in a loss. Detailed analysis of the
mistakes of the past, Lee has become very important to the future success of Mount
Buddha nature. This is also one of his best learning tool. Detailed analysis of past
mistakes, is very important to the success of Mount Lee Buddha nature
Lee Mount Buddha during the first phase of the analysis, learned a lesson that his
quick temper, always believe that non-action can not be admitted. Impatient to the
market, often on impulse to action, but rarely profitable. He because of this error, pay
a bitter price; but until today, many traders are still committing the same error.
Mount Lee is not in the New York Buddhist name for oneself. Six months, not only
pay up, with also borrow from 500 U.S. dollars to brokers. He took the money to redo
Feng women, return to shell fish dealers bet on this. He found an empty shell dealer
has an immediate quote, quotes delayed in New York. His practice time is based on
real-time quotes, quick transaction. Two days later, he returned to New York, holding
2,800 U.S. dollars and 500 U.S. dollars returned to the broker.
However, back to New York, he found that still operate much more difficult than he
thought, still barely break even, and had to return to the last shell dealers. Lee Mount
Buddha admitted covering up the identity operation, which accounts the money really
quickly to 10,000 U.S. dollars. At this time, shell dealer boss finally has caught him,
and a permanent ban on his door.
In 1901, the stock market started strong bull market, Lee Mount Buddha operation in
New York New York Stock Exchange-listed stocks, long on (buying) the North
Pacific (Northern Pacific) shares, 10,000 U.S. dollars blink of an eye into a 50,000
U.S. dollars . Then, he thought we should short the stock market pull-back, so create
two short positions (first through stock brokers to sell and then buy back at lower
prices, which make the difference), can not think of battalion's return soon
all spit back. Although from these two operations lose money, but his original view
was correct, unfortunately because of the huge volume, resulting in delay, a reverse
stock, immediately lose money.
This experience, let him feel very short in the implementation of the New York Stock
Exchange trading very difficult. Lee Mount Buddha knows, organized transaction
process is relatively complex, shell different from the real-time securities trading
environment, it must learn how to adapt. The spring of 1901, Laver lost again empty
the Mount. Soon, he found a mixed trading securities, securities newly opened shell.
He thought, entering transactions of these hybrid securities, a capital may soon can
groan. About a year before, he really earned a lot, until the securities are to be found
in these shell and declined transactions.
Lee Mount Buddha again and again lose loss, which taught him one thing: who held
the money must be forfeit, will make sense of the market works. To succeed, he refuse
to give up until all hope is gone, and continue to experience from their own mistakes
and learn.
This time, he also found time factor. Stock of the time element is the operation must
be patient, given time, must have received. This life is no different from most of the
effort. It's another layer of meaning, is understanding how the stock is
trading. Shell elements of securities of the time very short and urgent, because of their
establishment and operation of gambling Components strong. New York Stock
Exchange, the time element, then delayed more than an immediate transaction. In
addition, the New York Stock Exchange to buy stock, it really holds shares in a
company. New York Stock Exchange and the shell mode of operation of the securities
to the operating mode, the time difference, so market participants must make the
future more reaction time. This will need to be patient. After many years, patience has
become a major Mount Lee Buddha nature, several operations and thereby made huge
profits. Time factor also prove to him: stock speculation success, to go a very long
time. Market participants will not get rich overnight.
◎ trade stocks must be patient and over time, will have received. ◎
He convinced the matter, because the funds in his hand, has been up and down several
times back and forth. Young age, he has set many records. 15 years old, he earned the
first 1000 U.S. dollars. Less than 21 years old, earned the first 10,000 U.S. dollars.
Capital account had risen to 50,000 U.S. dollars, two days later, they all returned to
the market. His fill of ups and downs of the market, but still persistent, because he
knows very clearly that he will live on through the market.
At this time, Lee Mount Buddha defines a thing. He acts in advance of market trends,
defined as gambling. In particular, market analysis will be where to go, it is difficult
to achieve, and he found that the probability of the retail traders adversely. He
"speculation" is defined as able to be patient, and only
speculation in the market state of the signal for some action only. # He was already
learning the new skills required for superior superior, but also exercise self-discipline,
perseverance, constantly improve their own codes of practice. #
At this time Mount Lee Buddha, can claim to be experts. He believed the words of
others and their so-called "gossip." The number of operations he
has too often. He committed another error, is too early profit taking, especially in the
bull market. During this period, he also discovered the importance of the broader
market, identify and understand the market's overall performance and how
it affects the majority of the stock tape is very important thing. He must learn how to
interpret the market is doing, and now at what stage, rather than try to predict the
future to do anything about it.
◎ s market is doing, and now at what stage, rather than try to predict the future to do
anything about it. ◎
Lee Buddha Mount understand early learning. He found that the stock market lost
patience, a person can commit one of the biggest mistakes. Through experience, he
learned to judge their faith without doubt. His intention is, therefore, confident of their
judgments, it will not happen because the market is often distracted by small
Experience accumulated over time, his strategy began to bear fruit, to a three-year-old,
operate more handy. At this time, he developed an exploratory operation strategy # #
(probing strategy, more detailed talks later in this chapter). He introduced another
important strategy, operational strategy pyramid is # # (pyramiding strategy).
Pyramid operation strategy, the book also describes all other outstanding transactions
is not incompatible with the important people follow the code. Pyramid operation
method is operating in the stock rose on the way overweight. Might imagine, this
strategy may sound at the time how departure from common sense, because most
people think, to buy cheap goods, it should be bargain hunters, rather than buying
more higher 才对. Lee has a different idea of Mount Buddha, in his view, the recent
buying of shares, if the trend that you are right, free to buy more, this concept will
reward you get icing on the cake. Lee Mount Buddha found that a stock's
price movements observed and buy, if the prices continue to rise, then the stock price
movements from, to prove that he has done on the decision. Made the right decision,
confirmed this, which proves that he should continue to buy more shares. The effect
of icing on the cake, the interests of equity investments will scale new heights.
By the end of 1906, the market's upward trend is difficult to maintain, Lee
Mount Buddha was to test the operation of operational strategies and tactics used in
emptying the pyramid on, as prices fell, increasing the size of short positions. Bear
market of 1907 the early stages of his very substantial short-selling profits, less than
31 years old, have become millionaires.
Lee Buddha Mount sights on the 1907 crash, October 24 rolled mild cover their short
positions, one day, earning three million U.S. dollars. October 1907, when the most
influential financier JP Morgan (JP Morgan) inject the necessary liquidity to the
market, maintain market continue to operate without falling, the Wall Street rescue to
come back from near collapse. Morgan even went directly to pay tribute to Lee Mount
Buddha and asked him to stop the shorting. Even the famous Morgan, Mount Buddha
Lee acknowledged the rage in the market power of the Buddha can be seen
Lee's reputation on Wall Street and Mount influence evident.
(Middle), Wall Street big bear
By this time, Lee Mount Buddha Wall Street really has become a famous figure.
Mount the new Fu Lee Buddha found a lot of money to rely on market volatility to
earn big. His short position in the stock market crash of 1907, a large fishing one vote,
so to win, "Wall Street short" (The Great Bear of Wall Street) of
the title. Making money in those years, the Li River Moldova has repeatedly said he
believes the stock market analysis must be a do do, never fails; This is the lack of
non-operating elements of success.
◎ essential to the successful operation of the stock favorable factors: the stock
market does go on to do analysis. ◎
After the conquest of the stock market, Lee Mount Buddha also Huijun Watch
commodity markets (commodities market). He was called King Cotton and the Passy?
Thomas (Percy Thomas) to catch the line. However, the Li River friction between the
start and Thomas when Thomas had several operations because of flow, and lose all
the wealth. Unfortunately, this time Lee Mount Buddha's ear is cotton,
because he values very successful Thomas before the operation, is still regarded as a
legend in the cotton sector. Thomas Lee persuaded the Buddha to establish the cotton
part of Morocco. Lee Mount Buddha soon found that his long position in cotton losses.
The cotton trade, paid with previously earned trading profits of several million dollars,
mainly because he broke a lot of time early years developed many of the hard-won
market code.
Lee Buddha Mount violation of its own operation, not easily listen to what others
codes. He also violated the code of the rapid appearance of indemnity, the site
continues to cling to lose money. This experience, makes him emotionally, in order to
return the money fishing, despite all the hard operation, the result was even worse lose.
Lee Buddha into Mount deeply into debt now, up to several creditors. He is more
emotional depression, began to lose confidence, and this state of mind, is the
stock's killer.
Lee Mount Buddha spent several years, the operation was to restore profitability.
From 1910 to 1914, roughly flat in the market with soft (in August 1914 to 12 in
mid-World War I broke out, the market closed). Then Lee Mount Buddha has broke,
melancholy, over one million U.S. dollars owed to creditors. Moreover, these flat soft
years, the market is the lack of opportunity. In order to allow my mind to calm down,
stock market strength to return to the game, he decided to declare bankruptcy in 1914.
However, his luck still quite back. In 1915, in wartime gains in the market, a broker
by his 500 shares, the price limitation. Six weeks, he did not do anything, only the
study and observation of the market price. He noted that the stock price will be set up
certain standards (par level). The operating principles of this ancient, in fact his shell
securities operations have been used. The so-called standard price, is a stock station,
or 200 U.S. dollars 100 U.S. dollars per share, such as integer numbers, the continued
possibility of a high rise.
The price of 98 dollars he bought Bethlehem Steel (Bethlehem Steel), watched it up
after the last one hundred U.S. dollars continue to rise. Prices rose to 114 U.S. dollars
per share, and buy 500 shares. The next day the price rose to a 145 U.S. dollars, he
sell off their holdings of 1,000 shares, profit 5 million. The deal will help him regain
confidence and prompted him to once again follow their own codes of practice.
Account once the funds reached 50 million at the end of 1915 left 150,000 U.S.
By the end of 1916, Lee began shorting Mount Buddha. The market quickly turned
down. Was very well-known "leak" the outbreak, the legendary
President Wilson about the peace plan presented to the Germans, leading to many
leading shares for the first reversal. Wall Street think that this is bad news, because it
will hurt the supply of goods to foreign countries during wartime economic boom.
Lee Buddha Mount friend Baruch (Bernard Baruch; the second chapter of the main
characters) are shorting the market, reportedly leaked by the case of earned three
million U.S. dollars. Congress set up a committee to investigate the leak case,
summoned to testify Baruch and Lee Mount Buddha. Baruch admits that period, his
profit 470,000 U.S. dollars short positions, but insisted that the rumors will not rely
on the information obtained in advance. However, the New York Stock Exchange or a
new regulation was promulgated, not allowed to rely on leaked information to trade.
Of course, this provision difficult to implement, but we can see that Lee was the
Buddha Mount and Baruch's influence in the market. Lee Mount Buddha
said that in 1916 he was long on the stock market rose during the later months of the
emptying of the market fell, together earned about 300 million.
April 6, 1917, the United States into World War I paper. Lee Buddha Mount multiple
operations in the market are victory, began to repay all debts previously owed.
However, from the legal side, it filed for bankruptcy in 1914, he actually eliminates
the debt service obligations. 4-year-old that year, he also set up a trust account to
ensure that he will not bankrupt again.
Resurgence reputation
In 1917, Lee returned to Wall Street Mount Buddha distinguished reputation. May 13,
1917, "The New York Times" article said: "Wall
Street traders exaggerated and inaccurate exit: the current and previous speculators
speculation fueling the market, compared with the hand, like students and economists .
"The article specifically mentioned the Buddha Lee Mount and Baruch,
and further pointing to their large market, but also influential on Wall Street and
successful trading of people.
1920, Lee Mount Buddha that experience continued success in the market one of the
key elements. He, as Wall Street's best and one of the most successful
trading reputation and day by day Long. He achieved the American dream, because to
follow their own codes of practice and the MPFA tired jade. He always believed he
was on the market of students, we must persevere and keep on learning. Lee Buddha
Mount convinced that no one can master the market.
◎ Li Buddha Mount convinced that no one can master the market. Experience
continued success in the market one of the key elements. ◎
About this time, he began to recognize that, # explore the market leader in a strong
trend in the real sector is a very important thing #. He continued to study how the
leading shares stood out, and the spindles are strong gains. He quotes make a greater
effort to enhance their knowledge on how markets operate, thereby improving the
industry's leading shares his method. He found the market strong for each
launch a new upward trend, usually because of strong profit expectations, the new
leader in the industry, a leading manufacturer of these new shares. He therefore saw
again the fundamental importance of the market and stock prices. He also found that
the same number of shares of stocks tend to cluster in the Qi Qi, the leading stock
groups, and tend to every step with the broader market. These findings, for his stock
market crash in 1929, boarded a higher peak in the great help.
From winter 1928 to spring 1929, the full-Benz bull market. Mount all the way long
on Li River, a considerable profit. He then began to pay attention to whether the
market will form the head. Early summer 1929, he was squaring all the long positions
and instead will sell every rise. He also thought that the market has been up too far.
He saw the market jumps, lateral movement began trading patterns, a movement to
change the original surge. He began to send spies to the short side to detect the
Lee Buddha Mount tentative operation strategy is to first establish a small part of the
beginning of operation. If the operation goes well, as long as the trend of moving
towards the direction he expected would continue buying the (or short) and more
stock, which was his pyrami