The financial markets have come a long way in terms of technology, transparency, accuracy and speed. But there are few basics of the market that never changes, be it thoughts by the great Benjamin Graham, Warren Buffet, Charlie Munger or Peter Lynch.
Here are some thoughts by Jesse Livermore written in 1940 and they apply in today’s market scenario as well:-
- Nothing new ever occurs in the business of speculating or investing in securities and commodities
- Money cannot consistently be made trading every day or every week during the year
- Don’t trust your opinion and back your judgement until the action of the market itself confirms your opinion
- Markets are never wrong – Opinions Often are
- The real money made in speculating has been in commitments showing in profit right from the start.
- As long as a stock is acting right , and markets is right, do not be in a hurry to take profits
- One should never permit speculative ventures to run in to investments
- The money lost by speculation alone is small compared with the gigantic sum lost by so called investors who have let their investments ride.
- Never buy a stock because it has had a big decline from its previous high.
- Never sell a stock because it seems high- priced