How to Trade In Stocks by Jesse Livermore

How to Trade In Stocks by Jesse Livermore

"How to Trade in Stocks"—originally published by Duell, Sloan and Pearce in 1940—is the ultimate direct legacy of Jesse Livermore, widely regarded as one of the most brilliant and iconic speculative traders in financial history.

While Edwin Lefèvre’s classic book Reminiscences of a Stock Operator tells Livermore's life story in a fictionalized format, How to Trade in Stocks is the only book written directly by Livermore himself. Penned just months before his tragic death, the volume serves as a profound, unfiltered distillation of his raw trading formulas, psychological struggles, and capital-management rules. It is the foundational text that popularized trend-following, price action, and modern risk management, establishing principles that remain holy writ on Wall Street today.

The Pillars of Speculative Mastery

Throughout the text, Livermore lays down definitive axioms designed to keep a speculator alive through volatile market regimes:

1. The Danger of "Averaging Down"

One of Livermore's most fierce warnings is targeted at investors who add more money to a losing position. If you buy a stock at $100 and it drops to $90, human ego tells you it is a "better deal." Livermore exposes this as a fatal psychological trap. If a stock drops below your entry, it is physical proof that your speculative thesis is currently incorrect. Adding capital to a bad trade is simply throwing good money after bad.

2. The Art of Sitting Tight

Livermore famously noted that his massive wealth did not come from his active buying or selling; it came entirely from his sitting tight. Once a speculator has identified a major macro-trend and entered at a clean Pivotal Point, they must resist the compulsive urge to take a fast, tiny profit out of fear. You must have the courage to sit completely still and let the trend fully mature as long as the broader market remains healthy.

Language: English.

Genre: Economics.

Binding: সেলাই করা বাইন্ডিং

Quality: Premium Quality Books.

Printing: High Quality Printing.

Paper: Eye Friendly paper (Cream White)

Cover: Matt cover (Paperback).