REMINISCENCES OF A STOCK OPERATOR BY EDWIN LEFEVRE

Key Concepts of the Book
The book distills the operational wisdom of Jesse Livermore into enduring principles that remain highly relevant to modern traders:

• Human Nature is Constant: Livermore's core philosophy is that while technology and markets evolve, human emotions remain the same. The same greed, fear, and hope that drove people in the 1920s drive people today. Mastering these emotions within yourself is the first step to success.
• Follow the Trend ("Line of Least Resistance"): Success doesn't come from predicting the future but from identifying and following the current, dominant market trend. Livermore emphasized trading with the flow, not against it.
• Patience is a Virtue: "It was never my thinking that made the big money for me. It was always my sitting". The book teaches the critical importance of patience—waiting for high-probability setups and having the discipline to sit through a profitable trade rather than getting out too early.
• Cut Losses Quickly, Let Profits Run: This fundamental principle of risk management is a recurring and hard-learned lesson in the book. Livermore learned the necessity of using stop-losses and avoiding the temptation to "average down" on losing positions.
• Trust Your Own Judgment: The book strongly cautions against acting on "tips" or "inside information". Livermore's biggest losses often came from listening to others instead of his own carefully developed trading system and analysis.
• Trading as a Business: Livermore treated speculation as a rigorous, full-time business requiring deep study, not a casual form of gambling. He tracked his performance, analyzed his mistakes, and maintained a detailed trading diary.