Jesse Livermore

But when this feeling manages to expire, giving rise to greater optimism and more favorable perspective about the future in the investing mind, by more prevailing negativismo in the economic data, these will not manage to infect to the market. And that one exactly that one is the moment that the investing world is hoping. It will be necessary to be kind not to the economic news, but to how it receives them to the market. The corporative gains of the S& P 500 can get to fall a 35% in the first trimester and a 15% in all the 2009, according to estimations of analysts gathered by Bloomberg. The graphs of the indices of the United States point all towards a bearish acceleration for the next weeks, and as we indicated, fundamentals of enthusiastic market is not nothing. Who it tries to buy in these instances of market, it will have to know in clearly that this one is not forming any bullish figure at the moment – del point of view of the technical analysis for absolutely any term at the moment, but that one that looks for the long term will have of knowing how to still hold the shower that none comes and to disarm bought positions, knowing that it will be put uglier before better. Many initiates in markets usually ask to me what to do when in the middle of a low one as the present one has been bought and they are hopeless with each new loss for a 24-hour period.

First that I ask he is: ” Which was the term for which you defined your investment? “. If they answer the short one, I advise to them that for the next one they consider a limit of losses they respect and them, and if it is the length, since they respect term that ruled before realising the investment and they are inverted! Many investors usually watch the fluctuations of the day to day and see their portfolios lose value precipitadamente. If I raise of the operating one had been to maintain long term, because he is not advisable to watch the intranewspaper because the errors because of the panic can be distinctive in any portfolio. ” There” s to Time to go long, Time to go short and to Time to go fishing” (It has a little while to buy, a little while to sell and a little while to go away to fish), it said Jesse Livermore, one of great traders of world-wide history if I were not vegetarian, would go to look for the cane to me.