Jump to content

The Jesse Livermore Diaries/Scrapbook


Recommended Posts

  • Replies 50
  • Created
  • Last Reply

Jesse Livermore, although a stock trader, says to buy on new highs. Bad news for property bears;

 

http://www.bbc.co.uk/news/business-24533059

 

UK house prices have risen to a record level, according to the Office for National Statistics (ONS).

In August, the ONS's house price index stood at 185.8, surpassing its previous peak of 185.5 in January 2008.

The average price of a house or flat in the UK is now £247,000, the ONS said, the highest figure since the index was first calculated in 1968.

 

---

 

OK - transactions are at low volumes. But if prices are high during a recession/depression, what the heck are they going to do during a boom?

Link to comment
Share on other sites

All time high alert.

 

I like the look of GOOGLE. $1000 a clear potential pivotal point.

 

If it can clear that significantly, that would be a nice entry point but volume has been falling, so I would not risk at lot on this probe - E1030 S980 DYOR.

 

 

Good call !

 

GOOG: 1,003.30 : chart

Link to comment
Share on other sites

All time high alert.

 

I like the look of GOOGLE. $1000 a clear potential pivotal point.

 

If it can clear that significantly, that would be a nice entry point but volume has been falling, so I would not risk at lot on this probe - E1030 S980 DYOR.

 

 

 

1003 would be a pretty tight entry - maybe have 998 as a stop (daily close).

 

But for those people will a more slower pedestrian unleveraged pace, wait for a weekly close above 1030, and stop 980, target 1130

 

BUT DO YOUR OWN RESEARCH EVERYONE!

Link to comment
Share on other sites

998 is much better IMHO - just below the round number

Link to comment
Share on other sites

Google at $1031 and as a "sister indicator", the NASDAQ is also making new two year highs. Jesse Livermore always used two measures to get buy signals.

 

If it can close above 1030 today, that would be a nice little signal, and even better on a Friday weekly close.

 

Google is "sky net" - rise of the machines!

Link to comment
Share on other sites

I might use NCR corporation as a sister stock for Google. It has backed off the $40 area markedly, giving us a clear signal to wait.

 

Google has not given us a clear buy signal by clearing the $1000 significantly. I am waiting for a weekly close above 1030.

 

"Google is Cheap" according to a recent Moneyweek article http://moneyweek.com/share-tips-buy-google-stock-cheap-at-usd1000/

Link to comment
Share on other sites

  • 2 weeks later...
  • 2 weeks later...
  • 2 weeks later...
  • 4 weeks later...
  • 1 month later...
  • 2 weeks later...

Good stuff, Jesse is a trading legend.

 

I made these videos, they're getting old now, and I forgot to add them to this scrap book.....

 

http://www.youtube.com/watch?v=voTMFU-7Ulc

 

http://www.youtube.com/watch?v=JoEYNoGaUSE

 

From Trainee Investor's link;

 

1. “Money is made by sitting, not trading.”

2. “It takes time to make money.”

3. “It was never my thinking that made the big money for me, it always was sitting.”

 

Google is up to $1203 after some time elapsing. I am looking for Google to clear the 1200 level properly so I can raise my stop and look to pyramid - will this play out?! Only time will tell, patience...!

Link to comment
Share on other sites

  • 1 month later...

OK Google had a stock split - by two. Why? They want to keep the price down to allow more small investors to buy in (but the new shares don't have the same voting rights, so the founders keep more control). So for every share, you get another one, except all shares are halved in value. Recent News item link

 

So if we had a probe entry; E1030 S980 DYOR as quoted here.

 

----

 

So our experimental Jesse Livermore trade is like this so far -> Our shares have now doubled in quantity and the entry price becomes $515, and our stop is $480.

 

The current Google price is $543, so we are now targeting the $600 area.

 

 

So is Google the new Microsoft?

 

Look at how many stock splits Microsoft underwent before the dotcom crash in 2000 to keep the share price down. News item in 1999, why Microsoft did the split LINK

Is history repeating? Are we in a new dotcom/IPO mania? JustEat.com floated for some £1.5bn - 100 Crazy P/E ratio last week !!!

microsoft.png

Microsoft chart https://www.google.co.uk/finance?q=microsoft&ei=jzdAU5jaCcmXwQOOcA

 

Additionally, this recent split is Google's FIRST stock split. LINK

Link to comment
Share on other sites

Mentioned James Montier following your comments on the Jess thread elsewhere. Given Livermore principles evolve around market psychology a fair bit, I thought Montier was worth a mention being more modern day, makes some thought provoking observations. His little book provides a flavour.

Link to comment
Share on other sites

  • 1 month later...

The Jesse Livermore video has become the top video result on Youtube, something I didn't expect. It must be a function of the number of new views over time, that moves the videos up the Youtube search engine. I am thinking of doing a follow up video - is there anyone who would like me to put in something that they might want to see in it?

 

I've got some ideas, but I'll need this bank holiday weekend to prepare the slides;

 

- Apply his trading rules to some recent charts; commodity boom in 2007

 

- Mining and commodity company charts in 2007

 

- Finish the Key Price chart

Link to comment
Share on other sites

  • 2 months later...
  • 1 month later...

Archived

This topic is now archived and is closed to further replies.


×
×
  • Create New...