How to Trade in Stocks
$11.20
| Author(s) | |
|---|---|
| Pages |
140 |
| Format |
|
| Published Date |
1940 |
How to Trade in Stocks is Jesse Livermore’s only published book and the definitive statement of his legendary trading philosophy. First released in 1940, shortly before his death, the book distills the methods, principles, and psychological lessons of the man regarded by many as the greatest stock trader of all time.
Livermore outlines his practical trading rules, including his famous Pivotal Point theory, which identifies critical price levels where major moves begin. He also explains techniques such as top-down market analysis, tandem trading of sister stocks, and the management of continuation and reversal signals. Beyond strategy, the book stresses rigorous money management, the importance of cutting losses quickly, and the psychological discipline required to withstand the emotional pressures of speculation.
The work is divided into sections covering speculation as a business, stock selection, timing strategies, pyramiding, and emotional control. Livermore insists that speculation is not gambling but a disciplined pursuit, requiring preparation and the ability to act decisively. His belief that “the markets never change, because human nature never changes” resonates throughout the text.
Later editions, including those edited by Richard Smitten, incorporate insights from Livermore’s personal papers, family interviews, and secret worksheets, enriching the original text with context and analysis. This makes the book both a timeless classic and a practical manual for traders seeking to apply his rules in modern markets.
For traders, historians, and students of Wall Street psychology, How to Trade in Stocks is more than a trading book—it is a roadmap to speculation from the man who mastered, and was ultimately consumed by, the markets.
Contents:
- THE CIHALLENGE OF SPECULATION
- WHEN DOES A STOCK ACT RIGHT?
- FOLLOW THE LEADERS
- MONEY IN THE HAND
- THE PIVOTAL POINT
- THE MILLION DOLLAR BLUNDER
- THE THREE MILLION DOLLAR PROFIT
- THE LIVERMORE MARKET KEY
- EXPLANATORY RULES
- CHARTS AND EXPLANATIONS
How to Trade in Stocks: The Livermore Formula for Combining Time Element and Price By Jesse L. Livermore PDF
17 reviews for How to Trade in Stocks
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Anika Valencia (verified owner) –
This book is a must read. It brings together many of the ideas and concepts that more modern-day traders try to use and pass as their own work, but the foundation starts with Jesse Livermore and this book explains it all.
Carter Kirby (verified owner) –
The actual J.L. text is great, but short. The addendum is more sloppily written and does not flow well. However, its still good advice. Just think you can find the info in other books with more substance and coherence
Dylan Gordon (verified owner) –
This book was written before stock charts became a thing 😂🤣 It dismisses charts as a newfangled gimmick, and advises you to record your own price movements on a piece of paper. Completely irrelevant to today’s environment. It doesn’t anticipate computers and the internet. It still talks about stock prices in fractions.
Esme McCarty (verified owner) –
when I bought this book, I knew that I am not supposed to find a complete practical strategy from that.
instead, this book can give credit to other books, authors and principles .
all modern books about stock market technical analysis are based on “Jesse Livermore” Ideas or are not creditable.
and this book is direct way to his mind.
Blaise Santiago (verified owner) –
Great book and still has legs in 2022. The markets never change only the people. Highly recommended to any serious trader.
Karsyn Rivers (verified owner) –
This guy made a hundred million on the 1929 crash. His discipline’s and logic are good to know. A lot of very successful business men have studied him.
Ryann Bautista (verified owner) –
just fantastic!
Gracelyn Bartlett (verified owner) –
The charts require a little processing to understand. But very useful read! For all aspiring traders who need to understand trading and the markets!
Skyla Nelson (verified owner) –
Not what I expected.
Bear Jones (verified owner) –
This is a quick read that can be finished in a couple of hours. Basically, Livermore is identifying support and resistance levels and reacting to price action and volume. He goes into more detail, of course, but it is an interesting read to see how a Wall St. legend operated before computers and the internet.
Kayleigh Allen (verified owner) –
Here’s where a lot of people got their start. Fascinating read
Raul Huff (verified owner) –
I’ve read many books about Livermore and this is one of the best. A lot of people like to get into his personal life, and this book does too at the end, but let’s learn how to trade better from Livermore, he’s not an role model in how he lived his personal life. I would recommend this book to anyone that is just getting started or if they are experienced pro. It’s timeless and the wisdom just hops off the pages. Highly recommended
Malia McClain (verified owner) –
Classic book if you want to learn about trading in the markets by Jesse Livermore.
Mitchell McGee (verified owner) –
Great book by the Stock Market Legend Jesse Livermore. It’s short and to the point and full of valuable information for anyone interested in Stock Market Speculation. The principals outlined are still just as relevant today as they were in 1940 when the book was originally published. I recommend reading this along with “Reminiscences of a Stock Operator by Edwin Lefevre” Helped me to get the full picture.
Nyla Velasquez (verified owner) –
This book provides a great insight to one of the most intelligent minds to speculate on equities and commodity if you haven’t read reminiscences of a stock operator go ahead and read it after or before this it makes this read so much more insightful because in that book he explains a lot of the trades and his style in more detail.
Taylor Mason (verified owner) –
Livermore analyzes strictly by numbers. So, I found The Last Portion of this book where he does this is to be Incomprehensible, and the numbers to be unreadably tiny.
This book was published in 1940. I think Livermore never learned the helpfulness of charts at that point in time. Maybe this was because back in his time stock info was transmitted by morse code and then printed out on tape. These numbers are what he learned from. He did not have the types of very helpful charts that we have today.
Also, I wonder whether Livermore may have been particularly somber during the time that he wrote this. If so, then his depressed mood may have come through somewhat in his book. He committed suicide the very year that this book was published.
I found to be more helpful the financial portions of Richard Smitten’s book: “Jesse Livermore World’s Greatest Stock Trader”. However, a particularly superb writer on how to trade in stocks by the name: Mark Minervini speaks highly of this book.
Dax Stanley (verified owner) –
It’s a quick book about the most famous day trader, speculator, Jesse Livermore.
It’s an easy and quick read, that makes you feel like you are sitting next to the author or the main character. A fantastic read to anyone who wants to dive deeper into the emotional side of trading.