Jesse Livermore aka The Great Bear of Wall Street

I am not a fan to quote other traders, or prefer reading other traders books either, because every Forex or stock trader has his own trading view, style and beliefs. But since my student highly recommended Jesse Livermore’s book »Reminiscences of a Stock Operator«, I felt under the pressure and decided to read it. Probably not many of you know who Jesse Livermore was. Here are best Jesse Livermores quotes of »The Great Bear of Wall Street« as they called him.

Jesse Livermore was an American investor and well known speculator who also traded the famous market crash in 1929. What is really inspiring was his determination. He lost his fortune several times and always came back to the top. I do not know many who would have a courage to do this at least once.

What is also interesting, Jesse Livermore had similar principles and believes (trading mindset) about the trading as we have, here at BecomingTrader Forex Academy. Bottom line, he really mastered his trading mindset and trading skills. No doubt, he was one of the best traders in history and no matter what fortune he gained or lost, I really liked his humble approach and trading mindset.

He was really a leader of his trading business and life, and never listened to other people advice, as many traders are doing. No matter what your trading experiences are, and where are you with your own trading, I would highly recommend you to read his book.

If you are not sure yet, let me share with you his best quotes which can help you with your trading mindset and maybe change your view and perspective.

16 Best Jesse Livermore’s Quotes

“The stock market is never obvious. It is designed to fool most of the people, most of the time.”

Stock market or Forex market….on both majority of traders are doing mistakes as over-trading, chasing the market and moves, interfering with their open positions, revenge trading… you name it! Only traders with patience and discipline have a chance to make it trading.

“Play the market only when all factors are in your favour. No person can play the market all the time and win. There are times when you should be completely out of the market, for emotional as well as economic reasons.”

“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!”

There are days when you should be completely out of the market, waiting on the side line as fisherman. If you believe that you should be trading every day you have been fooled by the industry. Markets are open most of the time, but that does not mean you should be participated in action every day. Remember, trading is not a gambling, and market is not slot machine.

“Do not use the words “Bullish” or “Bearish.” These words fix a firm market-direction in the mind for an extended period of time. Instead, use “Upward Trend” and “Downward Trend” when asked the direction you think the market is headed. Simply say: “The line of least resistance is either upward or downward at this time.” Remember, don’t fight the tape!”

Trends are always changing, so just follow the footprints of the market – PRICE, and follow your trading edge. Be reactive to technical analysis, and don’t try to predict things.

“The game of speculation is the most uniformly fascinating game in the world. But it is not a game for the stupid, the mentally lazy, the person of inferior emotional balance, or the get-rich-quick adventurer. They will die poor.”

Nothing more to add here!

“Emotional control is the most essential factor in playing the market. Never lose control of your emotions when the market moves against you. Don’t get too confident over your wins or too despondent over your losses.”

“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.”

Once you have mastered your trading process, you should follow it with discipline day after day. Understand your trading edge rules and follow it to minimise trading with negative emotions. If you start breaking your trading rules, you will soon get negative emotions (such as revenge trading, over-trading…) which can kill your trading confidence and mindset. Trading is simple, but not easy, people are just making it complicated.

“All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis.”

“There is nothing new on Wall Street or in stock speculation. What has happened in the past will happen again, and again, and again. This is because human nature does not change, and it is human emotion, solidly build into human nature, that always gets in the way of human intelligence. Of this I am sure.”

Market is driven by emotions, and that drives supply and demand on the market which results in different trading patterns and formations on constant basis. We focus on trading market retracements, and those will be always happening, because no instrument can go up or down all the time. Market is a breathing thing and will always take its breaks before moving on.

“The market does not beat them. They beat themselves, because though they have brains they cannot sit tight.”

“The desire for constant action irrespective of underlying conditions is responsible for many losses on Wall Street even among the professionals, who feel that they must take home some money every day, as though they were working for regular wages.”

“Remember this: When you are doing nothing, those speculators who feel they must trade day in and day out, are laying the foundation for your next venture. You will reap benefits from their mistakes.”

Not being patient is a major hurdle to trading profitability. Most traders want action all day. You must be calm, disciplined and patient. If you want to have action and fun go to theme park.

“If you can’t sleep at night because of your stock market position, then you have gone too far. If this is the case, then sell your position down to the sleeping level.”

Always know your trading personality and risk tolerance. If you risk too much you will not be able to perform as good as if you keep your risk inside of your risk tolerance level. Risking 1% per trade may be good for someone, but that does not mean you should risk the same amount, if you are not comfortable with it.

“Don’t take action with a trade until the market, itself, confirms your opinion. Being a little late in a trade is insurance that your opinion is correct. In other words, don’t be an impatient trader. The good speculators always wait and have patience, waiting for the market to confirm their judgement.”

Rule Numero Uno: Never chase the market and setups. Always be patient, wait for good opportunities comes to you. Wait on your hands until price confirm your trading edge rules and judgment.

“It is much easier to watch a few than many.”

Forget about trading different markets and 100’s of different products. Focus on few and get really good at them. Personally I focus only on Forex market and 18 currency pairs. That does not mean I trade each one of them at the same time, but that gives me a chance to choose and pick only good trending pairs with volatility.

“A man must believe in himself and his judgement, if he expects to make a living at this game. That’s why I don’t believe in tips.”

As I said here, cut distractions and focus on your own trading. As they say: »Winners focus on winning. Losers focus on winners.« Stick to your trading process and get good at it.

Hope you will benefit from above quotes of Jesse Livermore and tips to improve your forex trading mindset.