Thursday, January 20, 2011

Jesse Livermore: Buy-And-Hold In A Bull Market

"Nobody can catch all the fluctuations. In a bull market your game is to buy and hold until you believe that the bull market is near its end. To do this you must study general conditions and not tips or special factors affecting individual stocks. Then get out of all your stocks; get out for keeps! You have to use your brains and your vision to do this; otherwise my advice would be as idiotic as to tell you to buy cheap and sell dear. One of the most helpful things that anybody can learn is to give up trying to catch the last eighth - or the first. These two are the most expensive eighths in the world."

Jesse Livermore


  1. Wise words, something to keep in mind when we enter a bull market.

  2. Enter?

    I thought it's been a bull market for almost two years now(?)!

  3. The SPX priced in Gold is down 80% since 2000 (5 shares of SPY for each ounce of gold), 50% since 2007 (2.3 shares of SPY for each ounce of gold), cost about the same in the nadir of 2009, and has since been out-performed by gold by about 20% on average. If you look at the SPY/GLD chart, you'll see we're in a choppy bounce, nothing like a bull market. Look back at the same chart for the 1990s and you'll see what a real bull market looks like. I expect one later this decade, but first, systems need to consolidate and transform.