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full-time job, perhaps even more than a job, perhaps it is a vocation—where many are called and few are singled out for real success.It is also interesting to observe that there are now, in 2004, more mutual funds than stocks on the NYSE. Most of these funds have strict charters demanding that they stay no less that 95 percent invested, with nomore than 5 percent in cash. Also, in the charters of most mutual fundsthe managers of the funds can only go long in their trades. So, they havebroken two of the Livermore rules–always keep a cash reserve, and always be ready to trade either long or short and also feel free to just sit incash and wait for the perfect trade to appear. This is one of the reasonsthe hedge funds have done so well in the last few years.
BEWARE OF STOCKS TIPSBy far, the hardest emotional pitfall a speculator must deal with is tips.It was the main reason Livermore moved uptown to Fifth Avenue—toget out of the reach of everyone who was trying to help him by givinghim sure things and inside information. Beware of all inside information and tips.Below is an excerpt from the biography Jesse Livermore—World’sGreatest Stock Trader.
Tips come from all sources. Once, long ago, one of these tips was passedon to me from the Chairman of a major American corporation who spoketo me at a dinner party at my house in Great Neck.“How are things going?” I asked him.“Great, we’ve turned the company around, not that it was really introuble, but it looks like clear sailing from here. In fact, our quarterly earnings are coming out in a week and they are going to be terriﬁc.”I liked him and believed him. So, the next morning I bought a thousand shares to test it out. The earnings came in just as the chief executivesaid they would. The stock rose nicely, the earnings continued to rise forthe next three quarters, and the stock rose steadily. I was lulled into a feeling of security, as the stock continued to rise. Then it stopped and startedplummeting in the opposite direction, like a waterfall.I called the Chairman and said: “This fall in your stock price has meworried. What’s going on?”He answered,”I know the price has fallen, J.L., but we consider it nothing more than a natural correction—after all we have had a pretty damnsteady rise in the price of the stock for almost a year now.”
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“How’s business?” I asked.“Well, our sales are slightly off and that news may have leaked out,I’m afraid. Looks like the bears got hold of that information and are hammering the stock. Its mostly short selling, a bear raid, we think. We’ll drivethem out on the next rally, squeeze them a little, eh J.L.?”“Are you guys selling any of your holdings?” I asked.“Absolutely not! Where would I put my money with more safety thanmy own company?”Well, sure enough, I later found out that the insiders were busy sellinginto the stock’s strength, the minute they got wind of the business goinginto a slump.I never got mad. It was my stupidity and greed. I knew that all keyexecutives were basically cheerleaders, and they must remain positive,must be bearers of only good news. They could never tell shareholdersor competitors that things were not as rosy as they appeared. In fact,it always made me smile to listen to their mendacity. The misstatements, the lies, were just a matter of self-preservation, an essentialpart of the job of a chief executive ofﬁcer—at every level of power, including politics.But it was my self-preservation I was interested in, not the top executives and shareholders of the companies I invested in. Therefore after awhile, and some substantial lost money, I never asked an insider againabout how their business was doing.Why waste my time listening to half-truths, shadowy statements, inaccurate projections, and just plain bold-faced lies when I could simplyjust look at the behavior of the stock? The story was clear in the action ofthe stock. The truth was in the tape for anyone and everyone to see.I have suggested to people who were interested in the stock marketthat they carry around a small notebook, keep notes on interesting general market information and perhaps develop their own stock markettrading strategy. I always suggested that the ﬁrst thing they write downin their little notebooks was Beware of inside information . . . all inside information!There is only one way to achieve success in speculation—throughhard work, persistently hard work. If there is any easy money lyingaround, no one is going to try and give it to me—this I know. My satisfaction always came from beating the market, solving the puzzle. The moneywas the reward, but it was not the main reason I loved the market. Thestock market is the greatest, most complex puzzle ever invented, and itpays the biggest jackpot.(Continued)
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And always remember: You can win a horse race, but you can’t beatthe races. You can win on a stock, but you cannot beat Wall Street all thetime—nobody can.People always talked about my instincts, especially after the Union Paciﬁc story and the San Francisco earthquake. But I never thought my instincts were that special. The instincts of a seasoned speculator are reallyno different than the instincts of a farmer, like my father. In fact, I considerfarmers the biggest gamblers in the world. Planting their crops every year,gambling on the price of wheat, corn, cotton, or soy beans, choosing theright crop to plant, gambling on the weather, and insects—the unpredictable demand for the crop—was more speculative. These same principles apply to all business. So, after 20, 30, 40 years, of growing wheat orcorn or raising cattle or making automobiles or bicycles, the person naturally gets his sixth sense, his intuition, his experience-based hunches forhis business. I consider myself no different.The only area I may have differed from most speculators was when Ifelt I was truly right, dead right, for-damn-sure right—then I would go allthe way, shoot the works. The way I did during the 1929 market crashwhen I had a line of one million shares of stock out on the short side, andevery rise and fall of a single point meant a million dollars proﬁt or loss tome. Even then, during my biggest play, it was never the money that droveme. It was the game, solving the puzzle, beating a game that confusedand confounded the greatest minds in the history of mankind. For me, thepassion, the challenge, the exhilaration, was in beating the game, a gamethat was a living dynamic riddle, a conundrum, to all the men and womenwho speculated on Wall Street.Perhaps it was like combat is to a soldier. It’s a mental high that’s visceral, where all your senses are pushed to the limit and the stakes arevery high.“I told my boys—stay in the business you’re good at.” I was good atspeculating. Over the years I took many millions of dollars out of WallStreet and invested them in Florida land, aircraft companies, oil wells, andnew miracle products based on new inventions—they were all abject failures, disasters. I lost every cent I ever invested in them.Just remember, without discipline, a clear strategy, and a conciseplan, the speculator will fall into all the emotional pitfalls of the marketand jump from one stock to another, hold a losing position too long, cutout of a winner too soon, and for no reason other than fear of losing theproﬁt. Greed, fear, impatience, ignorance, and hope will all ﬁght for mental dominance over the speculator. Then, after a few failures and catastrophes, the speculator may become demoralized, depressed, despondent,
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and abandon the market and the chance to make a fortune from what themarket has to offer.Develop your own strategy, discipline and approach to the market. Ioffer my suggestions as one who has traveled the road before you. Perhaps I can act as a guide for you and save you from falling into some ofthe pitfalls that befell me.But in the end the decisions must be your own.
CHAPTER 7
How LivermorePreparedfor His Day
P
oise, Patience, and Silence are essential to achieve psychologicalbalance.Livermore believed that one of the most important qualiﬁcations for a successful trader was poise which, to him, was deﬁned as stability, balance, and dignity of manner. A poised person is a person who canhandle his hopes and fears in a calm way.The other qualiﬁcation is patience, to wait for the opportune time,when as many factors as possible are positioned in the trader’s favor. Poiseand patience are the close friends of successful traders.The ﬁnal qualiﬁcation is silence. Keep your own silent counsel—keepyour victories and your failures to yourself—learn from them both. Poise,patience, and silence are attributes that must be cultivated—these virtuesdo not come automatically to the stock market trader.Livermore’s early experiences working at 15 as a board boy in thePaine Webber ofﬁce in Boston had a profound impression on him. He hadno time for group behavior when trading stocks for his own account. Hisearly observations had convinced him of the pitfalls of listening to otherpeople. Even if you knew the rules, sometimes other peoples’ opinionswould sink subconsciously into your mind and inﬂuence your trading.It was Livermore’s opinion that a person’s work space when tradingthe market was very important psychologically and could play a major rolein the ability to trade. He also felt that the serious trader’s trading spaceprovided the largest part of their income, so he did not hesitate to spendmoney on his work space. He was quite aware that setting up a proper115
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working environment could mean a great deal in proﬁts on the trades hemade. Livermore’s ofﬁce was his sacrosanct Trading Room.His main objective was to protect himself from all unwelcome badinﬂuences—in particular he was trying to avoid anyone who might beinclined to offer assistance by giving him some information in the formof a tip. Tips were the one thing that had done him the most harmin trading.He never wanted to be part of a group of stock market traders, especially those who gathered in the brokerage ofﬁces. His main reason wasthat he needed focused continuity of thought for more than 15 minutes ata time. He had no interest in tips, gossip, and the interpretation of thedaily news events concerning the stock market by the people gathered inan ofﬁce.The larger brokerage ofﬁces where great numbers of people gatheredwas chaos to his brain. As far as he was concerned, it was hurtful to histrading to be with these people, with their own individual biases and theirown hidden agendas, which did not necessarily match up with his own.He believed in working in silence and keeping his own counsel. As afriend of his once told him, “I do not take tips. I prefer to make my ownmistakes—not the mistakes of other people!” As far as Livermore wasconcerned, his friend was right.He always traveled from his home to his ofﬁces undisturbed, either bycar or on his yacht in the better weather. He did this in silence, carrying noother passengers; this gave him a chance to read the newspaper and planhis day. He did this to avoid meeting people who would inevitably inquireabout the stock market; the subject came up almost automatically because Livermore was so famous. He would then be forced to listen to tips,gossip, and prognostications that would inevitably creep into his conscious and subconscious mind and therefore affecting his judgment. If hetraveled by himself, he could continue his thoughts without any interference in implementing his plan for the day. He used to borrow his friendBernard Baruch’s method, who told his brokers: “If you know anythingabout the stock I am trading . . . please do not tell me.”Livermore was often the ﬁrst one to the ofﬁce, followed by HarryDache, his ofﬁce and security manager. The board men, usually six in total, arrived at the ofﬁce by nine o’clock to take their positions on thechalkboard to ﬁle the trades as they occurred. For volume numbers, Livermore consulted the actual ticker tape. He positioned the main ticker in thecenter of the room on a tall podium so all he had to do was raise or lowerhis eyes from the tape to the chalkboard to see the action of stocks heowned or was interested in. He also employed telephone lines that wentdirectly to the hot posts he was trading at the time, say, steel, motors, mailorder, or radio.
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He used the largest and fastest ticker tape and positioned it at neareye level, so it was easily accessible. In fact, he generally used tall tickertapes so that he was forced to stand while reading the tape. Standing in anerect position ensured proper blood circulation and better breathing. Hefound this helped to keep him calm during stressful trading periods. Hemade it his policy to be on his feet nearly all the time that the market wasopen. This gave him a little exercise and kept his senses at a higher pitch.He was never bent over or lounging. He considered the market a greatchallenge that demanded total concentration—it was not for the lazy. Heeven stood while telephoning.He allowed no talking once the bell rang; he demanded silence in theofﬁce while the market was open. His phone number was known to veryfew people, and he would often change it to keep people from reachinghim. He received and answered as little mail as possible during the workday. He was only interested in the stock market; it was his sole job, and heconsidered everything else an unwelcome distraction.One of the things he liked best about his job, after he had fallen intomany pitfalls and managed to climb out, was the solitude—he loved theindividuality, being the lone wolf—everything that happened occurred asa result of his judgment. He structured his ofﬁce so there were as few outside inﬂuences as possible.He had no interest in sharing his market experiences with anyone—the good or the bad. His attitude was “how could they care, or help me, mytrading had nothing to do with their lives, and they certainly couldn’t helpme.” Further, he wanted no help. He was also conscious of the fact bythen that if you do well, if you are successful, most people become envious, and they covet your success; if you do poorly they revel in your misfortune and tell their friends that you have ﬁnally been humbled by thestock market—and that You had it coming for your reckless behavior. Sosilence is best, since there is nothing to gain through informing people ofyour activities. The satisfaction of being correct, understanding and beating the tape . . . it was enough for him to know. He did not have to tellother people of his successes or failures. By then, it was usually too lateanyway, the trade was over.On October 5, 1923, in order to fully practice his new techniques andtheories, he moved his ofﬁces from 111 Broadway uptown to 780 FifthAvenue, the Heckscher Building. He designed the ofﬁces very carefully.He wanted to be away from the Wall Street atmosphere, out of earshotof any tips. He also wanted to have more secrecy and security in his operations, so that no one could know his trades. Sometimes, he used overﬁfty brokers to downsize and spread out the orders in order to keep histrades secret.Inside the building, there was a private express elevator that traveled
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only to Livermore’s penthouse ﬂoor. The ofﬁces occupied the entire ﬂoor.He purposely had no sign on the ofﬁce door where the elevator stopped.Once inside this door, there was a small anteroom, a kind of waiting roomwhere Harry Edgar Dache had one of his desks.Harry was described by the New York Press as pug ugly with a personality to match. He stood a solid six feet six inches and weighed closeto 300 pounds with the battle-scarred face of a pugilist. Harry’s looks belied his high intelligence. Livermore had interviewed him for only half anhour and hired him on the spot. Harry had been in the Merchant Marineand traveled the globe many times. He spoke six languages, includingLatin. He was a voracious reader, knowledgable in many areas, and a terriﬁc administrator. He ran the ofﬁce with secrecy and perfection. He wascompletely loyal to Livermore and very protective of him and his family.The boys loved Harry. Jesse Jr. and Paul were enthralled with his magical stories of traveling the seven seas. He was their unofﬁcial tutor,chauffeur, companion, and bodyguard, especially when they went toPalm Beach.There were no windows in the anteroom, only a few chairs andHarry’s desk. Behind Harry was the solid ﬂoor-to-ceiling door to the ofﬁces. There were no signs or identiﬁcation on any doors. To let someonein to see Livermore, Harry would always conﬁrm the appointment ﬁrstby intercom, when the guest arrived, no matter who it was. He wouldthen rise from his desk and use his key to open the door to the ofﬁcesfor the visitor. It was a theatrical ritual that Harry liked to perform, toshow the visitor the difﬁculty in gaining entrance into the Trading Room.And it worked.Behind the door was a massive open room with a green chalkboardthat ran the entire length of the room. There was a catwalk in front of thechalkboard where four to six men would work in silence. They eachwould have a section of the board. They were responsible for activestocks or commodities being traded or stocks on the watch list that werebeing closely observed.These men were paid very well and sworn to secrecy; Harry Dache assured they remained loyal. Each man wore head phones that connected tothe ﬂoor of the exchange. Men on the ﬂoor would often call up the instantquotes to Livermore’s board men, who would immediately write down theindividual stock transaction—the bid, asked, and sold price. So, on manyoccasions, they did not work off the ticker tape. It was too slow. This gaveLivermore an edge on the ticker tape, which was usually delayed at leastﬁfteen minutes and up to hours in a fast market. He wanted the most current information he could get—he had learned the hard way as a youngman how important fresh quotes were.
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If Livermore was active in several stocks or commodities, he wouldoften increase the staff from four to six men on the chalkboard. Thesemen would work all day on the catwalk, in silence, only taking a shortbreak for lunch, when they would usually be replaced by Harry, so noquotes were lost.These board men would always track two or more stocks in the samegroup. If Livermore was trading General Motors, he would track Chrysleras well, to observe the Industry Group action.In the middle of the ofﬁce was a massive conference table of shinymahogany with eight comfortable leather armchairs. On the rare occasions when guests were invited to the ofﬁce, he would always sit facingthe chalkboard so he could watch the quotes as he listened to the guests.Livermore would, on occasion, interrupt the meeting to enter his ofﬁceand place his trades in private.His personal, private ofﬁce was very large, with heavy oak and mahogany paneling. He had seen the paneling in a library in an old Englishmanor and had purchased it. The library was disassembled and shipped toNew York where it was reassembled.His desk was large, made out of highly polished mahogany. On thedesk were an In basket and an Out basket, and a pad and pencil. The walladjacent to the mahogany desk that faced the chalkboard was a solidsheet of clear plate-glass, so he could see the market action as it happened from his desk. The glass was cleaned personally by Harry at leastonce a week.There were three black telephones on his desk. One was a direct wireto London, the second went to Paris, and the third went directly to theﬂoor of the Chicago grain pits. He wanted ﬁrst-hand, fresh information,and he was willing to pay for it. He knew that wars were won on information and intelligence, and the general with the best information, the bestintelligence, was the one most likely to win. And he wanted no rumors ofwar, he wanted only speciﬁc, accurate information.His son Paul often came to this ofﬁce as he grew up, especially on hissummer breaks. Livermore sometimes allowed him to work the chalkboard. The board men were trained to work with a code that they explained to Paul. If a stock suddenly had a deep price ﬂuctuation, theywould use a secret code to note this on the board. These codes wereknown only to the board men and Livermore. It was what he later calledhis Livermore Secret Market Key. On occasion, there would be guests inthe ofﬁce who would ask him: “J.L. what the hell are those weird columnson the chalkboard, some kind of hieroglyphics?”“They make perfect sense to me,” he would respond.“You wanna explain them to me?”
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“No,” he would smile. “If I did, then you would be as smart as I am.”“Just tell me what to buy and sell—and when—that’s all—keep it simple for me.”“You know I never recommend a stock, but I would be glad to tell youwhether I believe the market is going up or down.”“It always goes up or down, J.L”.“You’re right of course, but the trick is when is it going to go upor down.”“And what stocks are going to go up or down, J.L.? Don’t forget it’swhat particular stocks are going to go up or down; that’s what we all wantto know—what stock will rise and when.”“If a man knows the general trend of the market he should be able todo well.”“Whatever you say, J.L., whatever you say.”One day he was sitting in his ofﬁce talking to his son Paul, when hesaid, “Turn around Paul, and look at the chalkboard.”Paul turned and studied the men as they moved on the catwalk likewell choreographed dancers.Livermore continued: “You see, son, those markings on that board areas clear to me as a musical score is to a great conductor. I see these symbols as alive, a rhythm, a heartbeat, a pulse, that makes beautiful music—it all makes perfect sense to me. For me the board is alive, like music; weare able to communicate. It’s something that has come to me only afteryears of hard work and practice, not unlike a great conductor of a greatorchestra. What I feel when I look at that board can’t be shared, anymorethan a conductor could articulate what he feels when he plays Mozart justthe way it should be played. The board and those men are a playing a symphony for me, a symphony of money—that sings to me—that makes loveto me—that envelops me in its song.”Paul studied his father carefully that afternoon. He believed everyword. It was a rare moment for Paul, to get so intimate with his father,who was a private man, stingy with his emotions, frugal with his love.
HOW LIVERMORE PREPARED FOR HIS DAYLivermore developed the following rule from a great trader: Keep stress atbay—act in all ways to keep the mind clear and your judgment correct.Livermore did all he could to achieve this in his physical life by going tobed early, eating and drinking lightly, taking exercise, standing upright atthe stock ticker, standing while on the telephone and demanding silence
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in the ofﬁce. He made it a rule to speak to no one on his way to work andhe kept silent about his stock market transactions.Jesse Livermore was a highly disciplined man. During the week, hewent to bed every night at 10:00 P.M. and arose each morning at 6:00. Hepreferred to have no one around him for the ﬁrst hour. This early time wasfor him. It was the time, after sleep, when he was most alert and open toabsorbing information. The kitchen staff was trained to leave his coffeeand juice on the table in the solarium, if he was in his mansion at GreatNeck, Long Island.The newspapers were also laid out for him, including the Europeanand Chicago newspapers. He read voraciously all his life. He wanted thishour or two to plan his day. Livermore had observed that few men reallyplanned their day. Yes, they were organized, they had appointments scheduled and lunch engagements, and public affairs planned and writtendown. They often had secretaries to assist them. They knew in detail whatawaited them, meetings, people coming by the ofﬁce, phone calls theywould make and receive. They knew what had been planned for them, butwhat items of major importance had they planned actually to get done forthemselves, and did they prioritize their time?Livermore, on special occasions, spoke to his two sons, Paul andJesse Jr., of his business while in his massive library in the house on LongIsland: “Boys, you will ﬁnd that hardly any businessman really plans hisday to handle the most important items. In most cases his day is laid outfor him—organized for him by his secretary and his staff. He is merely anattending party. At the completion of the day he is often left with the mostimportant matters still unattended, unexamined, uncompleted. Importantstrategy matters in running a complex business are perhaps not being attended: personnel problems, mergers and acquisitions, raising capital, andgreat marketing concepts—like buying on the installment plan was tobanking—or perhaps the competition is not being clearly examined or assessed until it is too late.“Not so for me. In the stock market my moves must be based as muchon clear facts as they can be. To play the market properly requires silence,and seclusion to examine the situation, and to appraise, and deliberate onnew information that comes to hand during the trading day. One must always have a clear strategy to play the market and clear rules to follow.“I have found that it is easy to pick up the phone and pull the triggerby buying or selling. The problem is knowing when and what to do, and tofollow religiously your own rules and discipline.“Boys, I decided long ago in the stock market that if there are goingto be mistakes made in my trading—I want them to be my mistakes. Idon’t need some one else to lose my money for me by giving me tips or
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inﬂuencing my trades. In the business I am in, there is no room for postmortems, you either make money or you lose money . . . or your moneyjust sits there waiting for the right situation while earning small interest.“That’s why I go to bed at ten and rise at six. The careful, disciplined man must be aware of everything, ignorant of nothing. You cannot afford to be careless about anything. Sometimes overlooking asingle item, big or small, can ruin everything, kill all your plans. Like ageneral in wartime—his men’s lives depend on his thoroughness inplanning and executing that plan. In the stock market there is no roomfor error and carelessness.“People think that I am simply a speculator, a trader, who ﬁnds situations and plunges into them. Nothing could be further from the truth. Ioften pick up small, seemingly useless clues in the newspapers and after checking them out, investigating what is behind them, I will actupon them.“You ask about my day? In the solitude of the morning hours, after being rejuvenated from sleep, with nothing to distract me, I carefully readthe papers. I have often used small speciﬁc news items like weatherevents, like droughts, insect problems, labor strikes, and assess how theywould affect the corn, wheat, or cotton yields that often lead me to a possible good trade.“I got my real news on the ﬁnancial side by examining the actualprices and actions in the commodities market such as coal, copper, steel,textiles, sugar, corn, wheat. I also looked at the automobile sales, and employment ﬁgures. I got a feel from this information and often a correctjudgment on general business conditions in the United States. It was noone single fact, it was a plethora of facts that often led me ﬁnally down anarrow path to a trade.“I did more than just scan the headlines of the newspaper; I read thepaper carefully looking for small items of news that might provide mewith important clues, especially about an Industry Group or a speciﬁcstock that had changed from weak to strong or vice-versa.“The headlines are for the suckers. A good speculator has to get behind the news and see what was really going on. Beware, often misleadingarticles are planted by people or brokers with hidden agendas, who wantto sell their stock on the good news or they want to keep people investedwhile they go ahead and distribute their own stock.“Once I traveled in my railway car to Pittsburgh where I observedthat the steel mills were not at 30 percent of capacity, they were at lessthan 20 percent and falling. In other words, the steel stocks were a perfect short sale.“Unfortunately, many people who invest in the market only read theheadlines, and they too easily believe what they read. This is not good,
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since there are many pitfalls, schemes, and dangers. Slick money traps always appear wherever great sums of money are involved, such as thestock market. It is my observation that often what you read in the newspaper is nothing more than another form of a planted stock tip—so thereader has to be aware of the source, motives, and effect of what he isreading on the stock market, otherwise chances are he or she will becomea sucker too.“Boys, it is my observation that there is no better time than the earlymorning to gain an enormous advantage toward being a successful stocktrader. There is silence in the house, no person or thing is disturbing yourconcentration, and the mind is renewed after a good night’s sleep.“You will learn as you grow older that most people simply get up at acertain time in the morning, get ready, and go directly to the ofﬁce. Often, these same people feel the desire to go out at night during the weekto the cinema, a play, a long dinner with several drinks. In other words,they feel the need for social interaction or recreation during the weekdays. This may work well in other ﬁelds of endeavor, but it is a dangerous practice on a regular basis if a person wants to be successful inseriously trading the stock market. A good stock trader is not unlike awell-trained professional athlete who must keep the physical side of hislife in perfect form if he wants to continue to be at the top of his mentalform. The body must be in tune with the mind, for there is no more intense or exciting ﬁeld of battle than the stock market. A person is making a mistake if he thinks success in the stock market comes easily,instantly, or steadily without great effort. The successful trader must always be in top physical form.”The boys always enjoyed their father’s time with them, especially asthey grew older. It was rare for him to spend a lot of time with his sons.His oldest son, Jesse Jr., lived a life full of strife and torment, until he ﬁnally took his own life in Palm Beach.During the week, Livermore had always been willing to sacriﬁce thediversions offered to people from ten o’clock at night until two in themorning. He did not feel he had missed anything by being asleep duringthis period, and up at ﬁve or six in the morning. All Livermore’s life, hefound that there is true joy in the solitude and the pure mathematicalwork he did during this time. For he always believed he was in search ofbigger game than just pleasure and social interaction. He wanted to besupreme in his endeavors in the stock market—this is what gave him thereal pleasure and satisfaction: playing the game and winning the game.It was his observation that the public sincerely believes that the stockmarket is an easy way to make money. If they have some extra money toinvest, they believe the stock market should offer them an easy way to increase the value of that money.
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This is not the case and never has been. Livermore observed that people who have no knowledge of the stock market, but insist on playing it,generally lose their money in a hurry.In Livermore’s view, if you want to succeed in the stock market, makesure you get plenty of sleep, give yourself plenty of time for the uninterrupted study of all