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Big Mistakes
book

Big Mistakes

by Michael Batnick
June 2018
Beginner content levelBeginner
192 pages
4h 4m
English
Bloomberg Press
Content preview from Big Mistakes

CHAPTER 2Jesse LivermoreManage Your Risk

Jesse Livermore was a larger‐than‐life, full‐blooded character who happened to embody every great trading maxim of the time.

—Paul Tudor Jones

“Buy low, sell high.”

“Nobody ever went broke taking a profit.”

“Buy when there's blood in the streets.”

We often use these axioms to justify why we bought, sold, or held onto an investment. The problem with rules of thumb, specifically when it comes to investing, is that they mask complexity. There are far too many variables and crosscurrents pushing and pulling on the price of a security to boil everything down to a cute little phrase. Doing this can lead to systematic biases, blind spots and bad decisions that are repeated again and again. Consider the following ...

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Publisher Resources

ISBN: 9781119366553Purchase book