Post
MK守约
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《 Don't Use All Your Capital to Validate a Judgment 》
—Starting with Livermore's first bankruptcy in 1898
In 1898, 21-year-old Jesse Livermore experienced his first true 'zero' in his trading career.
It was not because he couldn't read the market; on the contrary—his judgment at that time was correct.
The problem lay in one thing:
He used all his capital to validate a judgment.
That year, Livermore had already made quite a bit of money in the speculative market with 'market dynamics and rhythm', and his confidence rapidly inflated. He firmly believed he had grasped the essence of the market, thus making a mistake that all new geniuses tend to commit:
In 1898, 21-year-old Jesse Livermore experienced his first true 'zero' in his trading career.
It was not because he couldn't read the market; on the contrary—his judgment at that time was correct.
The problem lay in one thing:
He used all his capital to validate a judgment.
That year, Livermore had already made quite a bit of money in the speculative market with 'market dynamics and rhythm', and his confidence rapidly inflated. He firmly believed he had grasped the essence of the market, thus making a mistake that all new geniuses tend to commit:
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