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How to Trade in Stocks

4.20  ·  Rating details ·  1,298 ratings  ·  54 reviews
The Success Secrets of a Stock Market Legend Jesse Livermore was a loner, an individualist-and the most successful stock trader who ever lived. Written shortly before his death in 1940, How to Trade Stocks offered traders their first account of that famously tight-lipped operator's trading system. Written in Livermore's inimitable, no-nonsense style, it interweaves fascina ...more
Paperback, 224 pages
Published March 10th 2006 by McGraw-Hill Education (first published 1940)
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Average rating 4.20  · 
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 ·  1,298 ratings  ·  54 reviews

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Duffy Pratt
May 02, 2011 rated it liked it
Shelves: trading
I would have rated this higher if I had not already read Reminisences of a Stock Operator. There's very little in this book that is not presented there, and I think the presentation there is more vivid. The main thing that is new is some actual detail about approaching Livermore's pivot points, including some actual examples. Unforturnately, however, these examples derived from data charts that were basically unreadable on my Kindle. Still, I got the basic idea of how he used them. The specifics ...more
Phil Toop
Dec 22, 2015 rated it it was ok
Shelves: finance
This review has been hidden because it contains spoilers. To view it, click here.
Jul 26, 2014 rated it it was amazing
This is a must read book for any trader attempting to make it big. Jesse Livermore, in many ways, is the complete opposite of financial role models like Warren Buffet. His take on the stock market is like no other. After reading the book, you realize it wasn't luck that was on Livermore's side but his self-discipline to be a better trader.

This book gives deep thoughtful insight I have yet to come across in any other book. There is more to this book than just the financial advice as Livermore pro
Jan 04, 2021 rated it liked it
This is a kind of odd book. Very little of the edition that I read was Livermore's actual book, which I'm guessing was originally little more than a pamphlet that he wrote at his son's urging.

The Livermore text is padded with a lot of reiterating by the editor, and what amounts to a second, longer book, of the editor putting the 'lessons' into a coherent system of sorts, or maybe not system but lessons the editor thinks are important.

It's not until you get to the very fluffy end of the book tha
Jul 11, 2017 rated it liked it
I find it fascinating that a book on trading written in 1940 still applies today. To quote Jesse Livermore, "There is nothing new on Wall Street or in stock speculation. What has happened in the past will happen again, and again, and again. This is because human nature does not change, and it is human emotion, solidly built into human nature, that always gets in the way of human intelligence." This book takes a peek at how one might ride the many human emotion waves in the stock market right bef ...more
Harold Citron
Feb 06, 2013 rated it liked it
Shelves: investments
Interesting book, centered around Livemore's trading system. The system focuses purely on a momentum based strategy revolving around charting techniques. Little to do with Ghaham / Dodd style investment analysis (Livemore actually discourages this style of investing). Since I prefer financial statement analysis to charting (sorry, voodoo in my mind) I wasn't pulled in by the various tops, bottoms, shoulders, and breakout points.

That said, the understanding of momentum, both in terms of industri
Ed Ball
Oct 22, 2013 rated it it was amazing
Shelves: investing
A Classic! Jesse Livermore's contribution to investors the world over was "The Pivotal Point." The point in the chart where a confirmation for a new trend has begun. Jesse stated: "I never benefited much from a move if I did not get in at somewhere near the beginning of that move." ...more
Jason Lamarche
Aug 03, 2009 rated it it was amazing
Learn the golden rules of stock trading, but don't forget them when you start to sweat! Another must read! ...more
J Sha
Apr 06, 2015 rated it it was amazing
Shelves: trading, resurface
Learn from the legend!
Chloe Chong
Apr 22, 2015 rated it liked it
Jesse Livermore is like a wonder to me, but this book clearly shows that he was best talented in Trading stocks.
Girish Nayyar
Aug 30, 2015 rated it liked it
Shelves: trading
Nowhere near reminiscences of a stock operator - much much superior book.
Marco den Ouden
Sep 07, 2015 rated it really liked it
See my review here: How to Trade in Stocks ...more
Maria Rinehart-Henderson
Feb 19, 2016 rated it it was amazing
Growth Trader's bible, and easy to recognize who Influenced Bill O'Neil of IBD. ...more
John Richards
Apr 22, 2016 rated it it was amazing
Read reminisces of a stock operator way back 88 or 89. this is a great review. like the pivot points myself.
May 26, 2018 rated it liked it
Shelves: finance
About a year ago, I kept seeing twitter traders mentioning Jesse Livermore (JL). I have this personal heuristic that, when I hear two independent source, mention some issue or person, I’ll look into it immediately, because there’s usually something worth investigating. Same with JL. My heuristic got validated, because JL really is a guy worth looking into.

JL was an early 20th century Wall Street speculator who was wildly successful in his field, and his field only. This book tries to uncover hi
David Liang
Aug 13, 2020 rated it liked it
He explains his trades in extreme detail. It can be confusing since we no longer use fraction prices and the companies he mentions are no longer around. He has many rules to follow, some are good and some are confusing. I sometimes wonder if he had full confidence in his own rules. He ended up killing himself because he lost so much money.

Having said all that, since this book is a classic, all traders should read it. His stories and how the market play tricks on one's own confidence is still rel
Feb 14, 2018 rated it it was amazing  ·  review of another edition
Still relevant

Though Jesse Livermore died in 1940, his stock trading advice is still relevant. Follow the lessons he learned from his decades of trading stocks through the recession of 1907 and the depression of 1929, as well as, insights learned from his study of human psychology.
Chew Zai
Aug 02, 2018 rated it really liked it
More like psychology study of a trader book to me.

JL mentioned alot tips that are still relevant until today, and his pivotal theory is important as well.

His advanced method is quite outdated in modern era, as charts are updated every sec and flash crash can happen anytime esp volatile asset like bitcoin and cryptos.
Fascinating little book, but also something of a lesson as "He (Livermore) is considered a pioneer of day trading[2] and was the basis for the main character of Reminiscences of a Stock Operator, a best-selling book by Edwin Lefèvre. At one time, he was one of the richest people in the world; however, at the time of his suicide, he had liabilities greater than his assets.[3]" (Wikipedia) ...more
Utsav Parashar
Oct 02, 2018 rated it it was amazing
Few quotes and invaluable. He provides practical insight of viewing the price trend, natural reaction of stock, natural rally.
One line which I liked the most was "Markets are never wrong — opinions often are."
Ryon Calhoun
Oct 08, 2019 rated it really liked it  ·  review of another edition
One of the classics

this man lived such an interesting life and laid out the financial planning groundwork for generations to come. This book is worth the read and will give you new ideas on stock speculation
Artie Rubin
Jun 08, 2020 rated it it was amazing
What Livermore does here is talk about the *psychology* (aka, the emotional nature) necessary to be successful in the market. In my own experience, I found this imperative. I never realized how many emotions were influencing me, invariably to my detriment, whenever I considered making a trade.

The bottom line is, you can't succeed until you're fully conscious of the emotions churning through you--and then overcome them with a strategy you've back-tested (there are software programs which allow yo
Nov 02, 2020 rated it it was amazing
Shelves: favorites
This is such a classic. And it’s the best book on investing that I’ve read. Seriously a must read if you’re serious on trading stocks. Learn the market. Learn the rules. He’s one of the best stock-traders of all time. You can learn a lot from this book. So, I highly praise this.

Jun 17, 2017 rated it really liked it
A Classic. Much of the advice given in this book still remains relevant today, especially for those who wish to trade Big Mo, as was Livermore's style. ...more
Nicky Billou
Mar 09, 2018 rated it it was amazing  ·  review of another edition
I loved this book! Jesse Livermore is a stock trading legen, and learning how he invested and traded in stocks is worth millions!
Hass Khalife
Jan 01, 2019 rated it really liked it
Classic book that is a must-read for anyone in the financial markets. Doesn't teach you much but the way of technical analysis but Livermore didn't chart in his day. ...more
Rahul Jana
Aug 29, 2019 rated it it was amazing
Radoslaw Radoslawski
Dec 28, 2019 rated it really liked it
interesting story written by one of the most successful stock market speculant - Jesse Livermore. Important insights over his trading philosophy and techniques.
Jul 06, 2020 rated it really liked it  ·  review of another edition
Great man who is hardly known today.
Jan 23, 2021 rated it really liked it  ·  review of another edition
An excellent masterpiece.

An eye opener. I could not put the book down until. I finished reading it. I will definitely recommend this masterpiece.
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68 likes · 11 comments
“If you have timed the movement correctly, your first commitment will show you a profit at the start.” 4 likes
“It has always been my experience that I never benefited much from a move if I did not get in at somewhere near the beginning of that move.” 4 likes
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