As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

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Friday, 1 July 2011

Investing Made Simple by Uncle8888 (16)

Read? Investing Made Simple by Uncle8888 (15)

How to invest and make big money in the stock market?

What you think? Buy and hold?

Buy and hold may or may not lead to making big money in the stock market. But, I will share with you The Art of Making Big Money in the stock market that I learnt from my Sifu, Jessie Livermore.

It is RIGHT AND HOLD. It is different from BUY AND HOLD. Know the difference. You may be on the way to making big money in the stock market.

In the buy and hold strategy, you are buying some income producing or perceived under-valued stocks in the view of holding them over long-term and primarily focus on their stock dividends and at the same time hoping for some capital gains.

In Right and Hold strategy, it is different. You focus primarily on its capital gains and less on its dividend yield. You are right when the stock price moves up. When the stock keeps moving up; you are more RIGHT.. You sit TIGHT. This is Right and Hold strategy

This is what my Sifu, Jessie Livermore said:

In the famous book entitled Reminiscences of a Stock Operator, Jessie Livermore said: “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 always was my sitting. Got that? My sitting tight!

It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I've known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level, which should show the greatest profit.

And their experience invariably matched mine -- that is, they made no real money out of it.

I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make big money. It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance.”

Men who can both be right and sit tight are uncommon.

Can you read it again and again: Men who can both be right and sit tight are uncommon.

So the secret is to be this type of man in the stock market; then you are on your way to invest and make big money in the stock market.

5 comments:

  1. Whether right or wrong, it's human nature not being able to sit tight. That's why human needs "meditation" to calm the mind, so that able to sit tight more "naturally".

    ReplyDelete
  2. Another Version of Jesse Livermore - Reminiscences of a Stock Operator PDF Ebook

    Reminiscences of a Stock Operator (1923)
    Edwin Lefèvre

    # Ebook: 348 pages
    # Publisher: Wiley Inc. (2008)
    # Language: English
    # ISBN-10: 0471059706
    # ISBN-13: 978-0471059707

    This is recreated from the original paperback copy, using the readily available editions on the net. Most, if not all, are of poor quality, but managed nonetheless to create an edition, surpassing any other online available edition. Maybe even a Wiley Inc. publication.

    This edition supersedes all other editions.

    Enjoy

    ps. The foreword by Roger Lowenstein is not present.

    ReplyDelete
  3. i didn't know we share the same "sifu"?!

    you are absolutely right. but jessie is more of a speculator than an investor.

    ReplyDelete

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