Last week, we wrapped up my series and answered your question, “Do you see a correction, around the corner?” Today, I give a rare buy recommendation — a must read for investors and traders alike.
When asked, “What are your favorite books on investing for traders?” One book definitely tops the list — Reminiscences of a Stock Operator: With New Commentary and Insights on the Life and Times of Jesse Livermore, authored by Edwin Lefevre and Jon Markman.
Why does this book garner my top honor? At an early age of 21, the fictional Jesse Livermore started with a few coins and learned the skills to make millions. In the early 1900’s, Livermore won and lost millions playing stocks and commodities, at one point making ten million dollars in one month-an astronomical sum for the timeframe. Although first written in 1922, there is not one page that does not contain a golden nugget for today’s investor/trader.
Reminiscences of a Stock Operator is timeless. We experience the same challenges today that Livermore faced in the early 1900s. Emotion and greed are on each shoulder of every investor/trader. Many times it seemed the authors were speaking straight to me with their words. Finally, in the end, we come to the realization that millions do not buy happiness. There are two versions of the book available. I highly recommend the annotated edition by Jon D. Markman.
Here is one of my favorite passages from the book (page 35) “It takes a man a long time to learn all the lessons of all his mistakes. They say there are two sides to everything. But there is only one side to the market; it is not the bull side or the bear side, but the right side”.
In conclusion, this book is a must read for any and all investors/traders-the lessons are timeless and priceless. A great gift idea!
Next week, I discuss a subject where I was 100 percent wrong. See you then!
First Published in The Southern Illinoisan – December 14, 2013