Losers Average Losers
Forty percent ofAmericans withincomes less than$35,000 a year believethe lottery is their best chanceto make $500,000for retirement.
There is a famous picture of a well-known trader relaxing in his office with his feet kicked up. A single sheet of loose-leaf paper is tacked on the wall behind him with the simple phrase written out in black marker:
“Losers Average Losers”
Trite meaningless talk? Not so fast.
Famed trader Jesse Livermore warned 100 years ago against averaging losses. For example, you buy a stock at 50 and two or three days later if you can buy it at 47, you average down by buying another hundred shares, making an average price of 48.5. Having bought at 50 and being concerned over a three-point loss on a hundred ...
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