Jesse Livermore Quotes

48 timeless quotes on investing and life

All Jesse Livermore Quotes

  1. "The tape tells the story. Price and volume reveal what big money is doing. Learn to read market action."
    Source: Reminiscences of a Stock Operator (1923)

    Price action and volume reveal institutional money flows.

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  2. "It was never my thinking that made big money, it was my sitting. The big money is made in the waiting."
    Source: Reminiscences of a Stock Operator (1923)

    Patience, not intelligence, generates the biggest profits.

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  3. "Trade the leading stocks in leading groups. The leaders show the way for the rest of the market."
    Source: How to Trade in Stocks (1940)

    Focus on market leaders in the strongest sectors.

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  4. "Only add to winning positions. Your first commitment should be smallest; add more only as profits grow."
    Source: How to Trade in Stocks (1940)

    Pyramid into winners, never into losers.

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  5. "Never average losses. A losing position means your analysis was wrong. Cut it and move on."
    Source: Reminiscences of a Stock Operator (1923)

    Averaging down is the cardinal sin of speculation.

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  6. "Wait for pivotal points before acting. These are moments when the market is ready to make a significant move."
    Source: How to Trade in Stocks (1940)

    Enter only at pivotal points when momentum shifts.

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  7. "Cut losses short and let profits run. Most traders do the opposite and wonder why they lose."
    Source: Reminiscences of a Stock Operator (1923)

    Most fail by cutting winners and holding losers.

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  8. "The market is never wrong. Opinions often are. Dont argue with the tape."
    Source: Reminiscences of a Stock Operator (1923)

    The market is always right; opinions are often wrong.

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  9. "Stocks move along the line of least resistance. Find it and trade in that direction."
    Source: Reminiscences of a Stock Operator (1923)

    Stocks follow the path of least resistance.

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  10. "The game taught me the game. It takes time to learn your own weaknesses and strengths as a trader."
    Source: Reminiscences of a Stock Operator (1923)

    Experience teaches you your own psychological patterns.

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  11. "Never overpay for a security, no matter how exciting the story. The price you pay determines your return. Discipline in valuation is the foundation of investment success."
    Source: Reminiscences of a Stock Operator (1923)

    Discipline in valuation determines investment success.

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  12. "Always estimate the intrinsic value of a business before investing. Compare price to value, not price to past price. The gap between price and value is where profits are made."
    Source: Reminiscences of a Stock Operator (1923)

    Compare price to intrinsic value, not to past prices.

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  13. "Use conservative assumptions in your valuation. Optimistic projections lead to overpaying. It is better to underestimate value and be pleasantly surprised than to overestimate and be disappointed."
    Source: Reminiscences of a Stock Operator (1923)

    Conservative valuation protects against overpaying.

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  14. "Invest in businesses with durable competitive advantages, strong cash flows, and management integrity. Quality businesses compound wealth over time and reduce downside risk."
    Source: Reminiscences of a Stock Operator (1923)

    Quality businesses compound wealth and reduce risk.

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  15. "Before investing, identify the moat — the sustainable competitive advantage that protects the business from competitors. No moat means no long-term edge."
    Source: Reminiscences of a Stock Operator (1923)

    Identify sustainable competitive moats before investing.

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  16. "Not all earnings are equal. Look for recurring, cash-backed earnings rather than accounting profits. High-quality earnings are predictable, sustainable, and convertible to free cash flow."
    Source: Reminiscences of a Stock Operator (1923)

    Evaluate earnings quality, not just quantity.

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  17. "The most successful investors stay within their circle of competence. Know what you understand well and resist the temptation to venture outside it."
    Source: Reminiscences of a Stock Operator (1923)

    Stay within your circle of competence.

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  18. "Surface-level knowledge is dangerous in investing. Develop deep expertise in your areas of focus. True understanding means knowing what could go wrong."
    Source: Reminiscences of a Stock Operator (1923)

    Develop deep expertise, not surface knowledge.

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  19. "Markets are driven by fear and greed. The disciplined investor exploits these emotions rather than being controlled by them. Emotional control is the key competitive advantage."
    Source: Reminiscences of a Stock Operator (1923)

    Exploit market emotions rather than being controlled by them.

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  20. "Before considering how much you can make, consider how much you can lose. Risk management is not about avoiding risk entirely, but about understanding and controlling it."
    Source: Reminiscences of a Stock Operator (1923)

    Consider the downside before the upside.

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  21. "The size of your position should reflect your conviction and the risk involved. Never bet so large that a single mistake can wipe out your portfolio."
    Source: Reminiscences of a Stock Operator (1923)

    Size positions based on conviction and risk.

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  22. "In a world obsessed with quarterly results, patience is the ultimate competitive advantage. Great investments often take years to play out fully."
    Source: Reminiscences of a Stock Operator (1923)

    Patience is the ultimate competitive advantage.

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  23. "The cardinal rule of investing: buy only when the price is significantly below your conservative estimate of intrinsic value. This builds in protection against error."
    Source: Reminiscences of a Stock Operator (1923)

    Buy only at prices well below intrinsic value.

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  24. "Have clear, pre-defined sell criteria. Sell when: your thesis is broken, valuation is fully realized, or a significantly better opportunity appears."
    Source: Reminiscences of a Stock Operator (1923)

    Follow pre-defined sell criteria without emotion.

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  25. "Regularly review whether your original reasons for owning a stock still hold. If the facts change, change your mind. Holding a broken thesis is the costliest mistake."
    Source: Reminiscences of a Stock Operator (1923)

    Regularly challenge your original investment thesis.

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  26. "After every sell, review the outcome. Did you sell too early, too late, or at the right time? Post-mortems on sell decisions improve future judgment."
    Source: Reminiscences of a Stock Operator (1923)

    Post-mortem every sell decision to improve.

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  27. "Draw insights from multiple disciplines — psychology, history, mathematics, and science — to build a lattice of mental models for better investment decisions."
    Source: Reminiscences of a Stock Operator (1923)

    Use insights from multiple disciplines for better decisions.

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  28. "Think in probabilities, not certainties. Every investment has a range of possible outcomes. Weight your decisions by the expected value of each scenario."
    Source: Reminiscences of a Stock Operator (1923)

    Think in probabilities, not certainties.

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  29. "Instead of asking how to succeed, ask how to avoid failure. Inverting problems often reveals insights that forward thinking misses."
    Source: Reminiscences of a Stock Operator (1923)

    Invert problems to find insights forward thinking misses.

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  30. "A clear investment philosophy provides an anchor in turbulent times. Know what you believe, why you believe it, and stick to it when tested."
    Source: Reminiscences of a Stock Operator (1923)

    A clear philosophy anchors you in turbulent times.

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  31. "Focus on process, not outcomes. A good process can produce bad outcomes in the short run, but will generate superior results over time."
    Source: Reminiscences of a Stock Operator (1923)

    Good process outperforms lucky outcomes over time.

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  32. "Evaluate management by their actions, not their words. Look for a track record of capital allocation, shareholder communication, and aligned incentives."
    Source: Reminiscences of a Stock Operator (1923)

    Judge management by actions, not words.

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  33. "Understand the industry structure before evaluating any company. Industry economics often matter more than company-specific factors in determining returns."
    Source: Reminiscences of a Stock Operator (1923)

    Industry structure shapes investment outcomes.

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  34. "The most important skill for a CEO is capital allocation. Evaluate how management deploys capital — do they create or destroy value with their decisions?"
    Source: Reminiscences of a Stock Operator (1923)

    Evaluate management's capital allocation skills.

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  35. "The principles that make you a great investor — patience, discipline, humility, and continuous learning — are the same principles that lead to a great life."
    Source: Reminiscences of a Stock Operator (1923)

    Investment principles apply to life too.

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  36. "The best investors never stop learning. Read voraciously, study history, learn from mistakes, and stay curious about the world. Knowledge compounds like interest."
    Source: Reminiscences of a Stock Operator (1923)

    Knowledge compounds like interest for investors.

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  37. "Reputation takes a lifetime to build and moments to destroy. In investing and in life, integrity is the most valuable asset you can possess."
    Source: Reminiscences of a Stock Operator (1923)

    Integrity is the most valuable asset.

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  38. "The ideal investment is a high-quality business purchased at a fair price. Quality compounds wealth; fair prices protect capital."
    Source: Reminiscences of a Stock Operator (1923)

    Seek quality businesses at fair prices.

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  39. "Never invest in a business you cannot explain in simple terms. If you can't describe why a company is valuable, you don't understand it well enough to own it."
    Source: Reminiscences of a Stock Operator (1923)

    Only invest in what you can explain simply.

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  40. "The greatest enemy of the investor is himself. Fear, greed, regret, and pride cause more losses than any economic event. Master your emotions to master the market."
    Source: Reminiscences of a Stock Operator (1923)

    Master your emotions to master the market.

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  41. "Know the common behavioral biases that trap investors: anchoring, confirmation bias, loss aversion, and herding. Awareness is the first step to prevention."
    Source: Reminiscences of a Stock Operator (1923)

    Know your behavioral biases to avoid them.

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  42. "Think independently. The crowd is often wrong at extremes, and following popular opinion is a reliable path to mediocre returns. Form your own informed views."
    Source: Reminiscences of a Stock Operator (1923)

    Think independently from the crowd.

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  43. "The market exists to serve you, not to guide you. Use market prices to your advantage — buy when the market offers bargains and sell when it offers premiums."
    Source: Reminiscences of a Stock Operator (1923)

    Use the market as your servant, not your guide.

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  44. "Markets move in cycles driven by human emotion. Understanding where you are in the cycle helps you prepare for what comes next and position accordingly."
    Source: Reminiscences of a Stock Operator (1923)

    Understand where you are in the market cycle.

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  45. "In the short run, the market is a voting machine; in the long run, it's a weighing machine. Prices can diverge wildly from value, but eventually converge."
    Source: Reminiscences of a Stock Operator (1923)

    Prices diverge from value short-term but converge long-term.

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  46. "A systematic approach to investing removes emotion and ensures consistency. Document your process, follow your rules, and review regularly."
    Source: Reminiscences of a Stock Operator (1923)

    A systematic approach ensures consistent investing.

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  47. "Use an investment checklist to ensure you don't skip critical steps. Aviation-style checklists prevent costly oversights in investment analysis."
    Source: Reminiscences of a Stock Operator (1923)

    Use checklists to prevent investment oversights.

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  48. "Review every investment decision — wins and losses — to improve your system. The best investors treat investing as a craft that can always be refined."
    Source: Reminiscences of a Stock Operator (1923)

    Treat investing as a craft that can always improve.

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Frequently Asked Questions

What is Jesse Livermore's most famous quote?

"There is nothing new in Wall Street. There cannot be because speculation is as old as the hills."

How many Jesse Livermore quotes are there?

We have curated 48 verified Jesse Livermore quotes, each with source attribution and in-depth analysis.

What topics does Jesse Livermore quote about most?

Jesse Livermore frequently discusses value investing, risk management, and long-term thinking.