Reminiscences of a Stock Operator (Illustrated Edition)

by Edwin Lefèvre

In a narrow market, when prices are not getting anywhere to speak of but move within a narrow range, there is no sense in trying to anticipate what the next big movement is going to be up or down.

"Do you wish to gamble blindly in the hope of getting a great big profit or do you wish to speculate intelligently and get a smaller but much more probable profit?"

The successful trader has to fight these two deep-seated instincts. He has to reverse what you might 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 big profit. It is absolutely wrong to gamble in stocks the way the average man does.

Never try to sell at the top. It isn't wise. Sell after a reaction if there is no rally.

Experiences had taught me to beware of buying a stock that refuses to follow the groupleader.

"The principles of successful stock speculation are based on the supposition that people will continue in the future to make the mistakes that they have made in the past."

Stocks are manipulated to the highest point possible and then sold to the public on the way down.