Proven Strategies That Keep You Ahead of the Market
Secret Rules and Tools for Stock Market Success
"All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis."
~ Jesse Livermore, How to Trade in Stocks
Jesse Livermore first became famous after the Panic of 1907 when he sold the market short as it crashed. He noticed conditions where a lack of capital existed to buy stock. Accordingly, he predicted that there would be a sharp drop in prices when many speculators were simultaneously forced to sell by margin calls and a lack of credit. With the lack of capital, there would be no buyers in sight to absorb the sold stock, further driving down prices. After the crash and its aftermath, he was worth $3 million.
This library is designed around Jesse Livermore’s book, “How to Trade in Stocks,” and his secret rules to stock market success.
- TM – The Market – Check the line of least resistance to establish the overall current market direction. Remember, Livermore never used the terms “Bull” or “Bear” because they forced a mind-set that he believed made the mind less flexible. He used the term “line of least resistance.” He checked to be sure the current line of least resistance was positive, negative or neutral – sideways. Be sure to check the exact market the stock trades in for instance: Dow, NASDAQ, or Amex – before executing the trade. It is essential to make sure the lines of least resistance are in the direction of your trade before entering the trade.
- TIG – The Industry Group – Check the specific industry group, if you are considering a trade in ATT check out the telecommunication Long Distance Group. If you are looking at a trade in Halliburton, check out the Oil Well Drilling Group. If you are looking at a trade in Harrah Entertainment check out the Gambling Group, make sure the group is moving in the correct direction, the line of least resistance to provide a profit for you on the trade you have selected.
- TT – Tandem Trading – Check the stock and the Sister Stock and compare them. If you are going to trade General Motors check a Sister Stock like Ford or Chrysler. If you are going to trade Best Buy then check out Circuit City – a Sister Stock. Tandem Trading requires the trader to place two stocks of the same group next to each other.
The Jesse Livermore Library contains an unbeatable set of trading tools, including 8 functions, 3 chart pages and 4 indicators to help you easily apply Livermore’s trading concepts to your trading strategy.
Up Trend Livermore Line indicator
The current stock symbol is in an upward trend mode.
Natural Rally Livermore Line indicator
The current stock symbol is in a natural rally mode.
Natural Reaction Livermore Line
The current stock symbol is in a natural reaction mode.
Livermore Lines Computer Page Layout
Upper left quadrant – Market chart Upper right quadrant – Industry group chart Lower left quadrant – Tandem stock a.k.a. Sister Stock chart Lower right quadrant – Target stock
Livermore Highlight Bars
Green highlight bar – Indicates the displayed stock, index, or market is in upward trend. Red highlight bar – Indicates the displayed stock, index, or market is in a downward trend. "T" Tandem Stock highlight bar ‐ Indicates that the Target Stock and the Tandem stock are simultaneously in an upward trend. "I" Index Group highlight bar ‐ Indicates that the Target stock and the Industry Group are simultaneously in an upward trend. "M" Market Group highlight bar ‐ Indicates that the Target stock and the Market are simultaneously in an upward trend.