Recommended Book: Reminiscences Of A Stock Operator

I highly recommended this book to novice or experienced trader. It's like the 'bible' of trading.

First published in 1923, its a written life account of a market speculator called Jesse Livermore. Imagine if you trade in the 1920s, where there's no internet and prices are in the form of telegram (you get your quotes-tick by tick in minutes instead). This guy is able to make millions (and also lose millions) in that decade.

In this book, Jesse Livermore shares his experience and lessons learnt during his trading. His wisdom words are like Bible's ten commandments. You should get this book, and costs around RM70 in bookstores. I will share some of his wisdoms here:-

1) " It never was my thinking that made big money for me. It always was my sitting. Men who can both be right and sit tight are uncommon. I found it one of the hardest thing to learn. But it is only after a stock operator has firmly grasped this that he can make big money."

2) " Remember that stocks are never too high for you to being buying or too low to begin selling."

3) " Never argue with the tape. To be angry at the market because it unexpectedly or even illogically goes against you is like getting mad at your lungs because you have pneumonia."

4) " The professional concerns himself doing the right thing rather than with making money, knowing that profit takes care of itself if the other things are attended to."

5) " The successful trader has to fight two deep-seated instincts. He has to reverse what you call his natural impulses. Instead of hoping he must fear, instead of fearing he must hope. He must fear that his loss may develop into a much bigger loss, and hope that his profit may become a bigger profits."