Enterprising Investor Forum

Reminiscences of a Stock Operator: Edwin Lefèvre Wednesday, May 28, 2008

One of the best books on markets and investment psychology! Despite really being about Jesse Livermore, one of the greatest stock speculators EVER, it is actually written as a fictional biography of “Larry Livingston.”

The book follows Jesse (Larry Livingston) from his early start helping out in “bucket shops”, to him starting to trade, to market speculator, to market manipulator, to market maker.. all the way to market legend. Throughout this whole incredible journey, the readers get a detailed account of what happened, how he made and lost millions of dollars and all of his words of wisdom.

This book takes place in the early twentieth century but it ‘practically’ reads as if it where written today. Naturally, there are differences but the psychology remains the same. Actually, readers will find out where a lot of the commonly used investment phrases/concepts originated. For example:

• following the ‘path of least resistance” = the trend is your friend
• do not buy a stock that is going down, if nothing is supporting it = don’t try and catch a falling knife
• the crowds do not profit from tips, think for yourself = tips are for waiters
• No stock is too high to buy or too low to sell
• and so on….

This is a really great read and has probably been the foundation for most of the other investment books out there. Remember that despite being published in 1923, this is the most read and recommended investment book ever! Do yourself a favor and pick up a copy…

Enjoy!