May twenty-ninth, two thousand twenty-six
《Don't Be a Wall Street Fool》
《Don’t Be a Wall Street Fool》
Author: Ariston
X ｜
This post supplements a series of “Don’t Fidget” posts on Planet.
On “doing nothing,”View note《Reminiscences of a Stock Operator》 and 《How to Trade in Stocks》 offer excellent explanations. Here are some excerpts for everyone to read and put into practice, Don't be a Wall Street fool.
Image: Reminiscences of a Stock Operator, Chapter II
1/ When Jesse Livermore reflected on the reasons for his failures, Getting the judgment right is not the hardest part; the difficulty is acting only when “conditions support your judgment.” There are times when the market calls for action, and times when it does not. Many losses do not come from failing to understand the market, but from being unable to resist the urge to keep trading.
“What beat me was not having brains enough to stick to my own game—that is, to play the market only when I was satisfied that precedents favored my play. There is a time for all things, but I didn’t know it. And that is precisely what beats so many men in Wall Street who are very far from being in the main sucker class. There is the plain fool, who does the wrong thing at all times everywhere, but there is the Wall Street fool, who thinks he must trade all the time.
“What truly beat me was not that I wasn't smart enough, but that I didn't have the good sense to stick to my own approach—that is, to trade only when I was sure that precedent supported my judgment. There is a time for everything; I simply didn't understand that at the time. That is precisely what defeats so many men on Wall Street who are nowhere near the most typical class of suckers.There is the ordinary fool, who does the wrong thing at all times and everywhere; but there is also the Wall Street fool, who thinks he must trade all the time.
No man can always have adequate reasons for buying or selling stocks daily—or sufficient knowledge to make his play an intelligent play.
No one can have good enough reasons to buy or sell stocks every day, or always have enough information to make every trade a wise one.
... The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street...”
... The impulse to keep trading constantly, regardless of underlying market conditions, is responsible for many losses on Wall Street...”
Image: How to Trade in Stocks, Chapter 1
2) Speculation should be treated as a “business,” not as pure gambling.There really are times when it is right to act, and just as surely times when it is wrong to act. Thinking you can make steady profits by trading every day, every week, is naïve and reckless.
“There are times when one should speculate, and just as surely there are times when one should not speculate.”
“There are times when one should speculate; just as surely, there are times when one should not speculate.”
“Only the foolhardy will try it.”
“Only the reckless would try to do that.”
Figure: Reminiscences of a Stock Operator, Chapter VI
3) When Old Partridge says, “This is a bull market,” what he really means is that the big money comes from catching the main trend, not every little fluctuation. Many people actually get the direction and timing right, yet still fail to make big money because they cannot hold on; in the end, they are defeated by their own impatience and doubt.
“I think it was a long step forward in my education when I realized at last that when old Mr. Partridge kept on telling the other customers, ‘Well, you know this is a bull market!’ he really meant to tell them that the big money was not in the individual fluctuations but in the main movements...
“When I finally realized that Old Mr. Partridge, time and again, would tell the other customers, ‘Well, you know this is a bull market!’ and that what he really meant was:The big money was not in the individual fluctuations, but in the main movements...At the time, I felt that my understanding had taken a big step forward.
And right here let me say one thing: After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight!
Here I want to make one thing clear: I spent many years on Wall Street and made and lost millions of dollars; what I want to tell you is that, It was never my judgment that made the big money for me; it was always my ability to sit tight.Got that? It was my ability to hold on to my position!
... Men who can both be right and sit tight are uncommon. I found it one of the hardest things to learn.
... People who can both be right and sit tight are rare. I found it one of the hardest things to learn.
... The market does not beat them. They beat themselves, because though they have brains they cannot sit tight.”
... They are not beaten by the market; they defeat themselves because they have brains but cannot sit tight.”
...
End of full text.
End of full text.
The companion U.S. equities, A/H shares, and commodities channels cover additional market detail and are still being continuously expanded:
The companion U.S. equities, A/H shares, and commodities channels cover additional market detail and are still being continuously expanded:
U.S. equities:https://www.meridianresearch.app/home?product=us-strategies
U.S. equities: https://www.meridianresearch.app/home?product=us-strategies
A/H shares:https://www.meridianresearch.app/home?product=asia-strategies
A/H shares: https://www.meridianresearch.app/home?product=asia-strategies
Commodities:https://www.meridianresearch.app/home?product=commodity-strategies
Commodities: https://www.meridianresearch.app/home?product=commodity-strategies
Note: All content in this document is for reference only. It does not constitute any investment advice, nor does it serve as a basis for any laws, regulations, or regulatory policies. Investors should not use or rely on such information as the basis for decision-making.
Note: All content in this document is for reference only. It does not constitute any investment advice, nor does it serve as a basis for any laws, regulations, or regulatory policies. Investors should not use or rely on such information as the basis for decision-making.