How to Trade in Stocks: The Livermore Formula for Combining Time Element and Price [Paperback]

Jesse L. Livermore (Author)

Book Description

ISBN-10: 0934380201 | ISBN-13: 978-0934380201 | Publication Date: November 1991

Written by one of America's most colorful and flamboyant speculators, who made... and lost... four multi-million dollar fortunes. He was once blamed for causing the 1929 Crash, and for precipitating every market break from 1917 to 1940. This book is Livermore's legacy to the speculator for all time, in which he states his philosophy of trading and lays down the list of rules that are necessary to win at the speculative process. This valuable book by a Wall Street great is a collector's item.

Product Details

• Paperback: 111 pages
• Publisher: Traders Pr (November 1991)
• Language: English
• ISBN-10: 0934380201
• ISBN-13: 978-0934380201
• Product Dimensions: 7.8 x 5.3 x 0.9 inches
• Shipping Weight: 8 ounces
• Average Customer Review: 3.8 out of 5 stars  See all reviews (16 customer reviews)
• Amazon Best Sellers Rank: #1,797,354 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

40 of 40 people found the following review helpful:

3.0 out of 5 stars 5 Stars if this chapters of this book wasnt removed., June 8, 2001

By 

R. Mak (Toronto) - See all my reviews
(REAL NAME)   

This review is from: How to Trade in Stocks : The Livermore Formula for Combining Time Element and Price (Revised Ed) (Hardcover)

Jesse Livermore's book, in my opinion, is the single all time best book ever written on trading stocks.

I have read many books on trading, 7 out of 10 ordinary books are written by people who are good at writing textbooks. They are good at talking theory, but when it comes to combat in the trading battlefield, they come short and leaves you unsatisfied.

Jesse walks you through important trading principles which he learned through mistakes himself. He walks you through the emotions, the struggles, the mistakes, together with the success. This is no textbook, but you will learn important principles from a man who has been through the trenches himself.

THis book is not for ordinary investors, but for traders with a bit of experience. For those who are full time traders, this book is a must read. It leaves the ordinary trading textbooks in the dust.

The only draw back is Richard Smitten bought the copyright to the original book (from what I know), and he removed 3 chapters at the end of the original book, and he replaced it with his own materials. I went through great troubles to get hold of the orignal book with the final 3 chapters intact(the juicy stuff).

Overall, a must read for traders. If you can find the original edition, buy it and forget the new edition by Smitten.

43 of 45 people found the following review helpful:

5.0 out of 5 stars Trading techniques used by the professionals even today, October 20, 2000

By A Customer

This review is from: How to Trade in Stocks : The Livermore Formula for Combining Time Element and Price (Revised Ed) (Hardcover)

This book's trading techniques apply even today. Jesse Livermore made and cashed in 100 million dollars during the October 29, 1929 crash, which shows you how effective his methods are. I have been using his methods for the past three years and am amazed at the results.

Using his system, I picked up Puma Technology (PUMA) last year at $10 in September 1999. By early March 2000, it went to $205 before it split 2:1. Again, using the same method, I picked up Digital Lightwave (DIGL) at $11 in October 1999. By early March 2000, it went to $150. I agree it was not a normal year last year but again using his method this year I selected FuelCell (FCEL) at $80 in August 2000. It went to $188 or so by September 2000 before it split 2:1.

I reread his book every few months so that I don't forget the important points. Jesse Livermore went from $25,000 to $150,000 in three weeks! and his method works even today.

He lost all of his fortune and declared himself bankrupt by 1934. I think he lost his fortune because of his personal life and not because of his trading. The other book on Jesse Livermore called 'Amazing Life of Jesse Livermore' by Richard Smitten that was published in September 1999 describes his life in great detail and also is an excellent read.

People that say that this book is not as useful in today's markets, I think, basically do not know how to interpret Jesse Livermore's guidance and trading methods. He says to buy a stock early, right before it starts in an uptrend and in the right sector, and hold on to it as long as it behaves normally. He said to get rid of it as soon as it started behaving abnormally. FCEL peaked at a volume of almost 7 million shares on September 12, 2000, which was the time to get rid of it the next day. As he said in the book, the last 48 hours of a stock's move is the most profitable and also the most dangerous.

In order to do full justice to his methods, you have to read all three of his books: Reminescences of a Stock Operator - by Edwin Lefevre, How to Trade in Stocks - by Jesse Livermore, and Amazing Life of Jesse Livermore - by Richard Smitten

30 of 30 people found the following review helpful:

2.0 out of 5 stars Truncated version of original book with added material., March 27, 2001

By A Customer

Amazon Verified Purchase

This review is from: How to Trade in Stocks : The Livermore Formula for Combining Time Element and Price (Revised Ed) (Hardcover)

I have a really fragile copy of a reprint of the this book printed in 1966. I purchased this edition so I could have a newer copy which would not have pages falling out of it. Unfortunately the editors have already removed three chapters of Livermore material and replaced them with original material by Richard Smitten. The Smitten material is ok, but it should have been added to the original book as an appendix not as a substitute for the last three chapters written by Livermore.

The original book was only 112 pages long and the material from that book stops at page 56 in this new edition leaving you with around 122 pages of new material not written by Livermore. For that sin I can only give this book two stars.