A crucial investment update from James Boric - the stock market technician who led his readers to gains of 48.8%... 58.8%... up to 62.1% in just a few weeks...
The Amazing, Overlooked Investing Secret of the Man Who Made $100 Million When the Stock Market Crashed in 1929...
...and How You Can Use His Secret to Triple Your Money in the Turbulent Markets Ahead
His name was Jesse Livermore, and he was the greatest stock trader who ever lived. He made tremendous fortunes during the Panic of 1907... the bull market of the 1920s... and even the crash of 1929. No matter whi
ch way the market moved, he made money. And now you can take profitable advantage of Livermore's most important investing secret to get your portfolio growing again as you earn double, or even triple digit gains in a matter of days - whether the market moves up, down, or sideways over the next six months...
Dear Daily Reckoning Reader,
Jesse Livermore has been dead for more than 60 years now - yet the investment strategies he used to build his hundred million dollar fortune are still relevant today. In fact, you can take advantage of those strategies to bring mind-blowing profits to your own portfolio in the days, weeks, and months ahead regardless of which way the market moves.
Gains like 62.1% on Gilead Sciences in less than a week... 58.8% on Johnson & Johnson... 48.84% on Nike in two weeks... and 45% on Cree in just one day.
And it's a lot easier and safer than you might imagine thanks to the unique and remarkably profitable investment service I'm going to introduce you to in a moment. As you'll see, it's a service that provides you with a deadly accurate system for making double- and triple-digit profits in the market up to 79% of the time regardless of whether stocks are moving up, down, or sideways.
But before I get into the details, I'd like to tell you a little bit about Jesse Livermore and the valuable lessons you can learn from the ups and downs of his storied career.
A Humble Beginning
| "There is nothing new on Wall Street or in stock speculation. What has happened in the past will happen again and again and again. This is because human nature does not change, and it is human emotion that always gets in the way of human intelligence." - Jesse Livermore |
But Jesse and his mother had bigger plans. So, with his mother's help, young Jesse hopped a wagon to Boston to make his fortune in the big city. His only asset: a five dollar bill his mother had slipped him.
As fate would have it, Jesse was dropped off in front of the local Paine Weber office. He walked in and immediately landed a job writing stock market quotes on a chalkboard. He found the work fascinating and was mesmerized by the constantly changing numbers.
Why Most Investors Lose Money
But Jesse was also fascinated by Paine Weber's clientele. He was astonished at how haphazardly they played the market. They did things differently every time they came into the office to trade.
One day they relied on hot tips. The next day they played the favorites. And on the next, they played the long shots. They made their investment decisions emotionally. They had no system, no plan. It was all random - as if they were just gambling, and hoping Lady Luck would look kindly upon them.
Most importantly, they all lost money.
All this randomness disturbed Jesse's precise mathematical mind. It made no sense to him. And it quickly became clear that if he was going to make money in the stock mar ket, he'd have to devise a better way than what he saw everyday at Paine Weber.
So he studied the numbers that he wrote on the chalkboard - searching for patterns he could profitably exploit. Jesse was convinced that the market had an inherent logic all its own - and he was determined to figure out what it was so he could use that knowledge to profitably trade stocks.
Night after night, he returned to his dingy boardinghouse room and furiously entered notes and trends in a diary based on what he had observed in the market that day. He began developing his own theories and strategies on how to beat the market. And after two years he felt confident enough to begin testing them in the real world.
Banned from the Bucket Shops of Boston
The problem was, Jesse didn't ha ve a stake - a wad of cash that he could use to start trading. So he went where all poor men with big ideas and little money went to play the market - the notorious "bucket shops" of Boston.
Operated by gangsters, bucket shops attracted stock market gamblers like moths to a flame. That's because anyone could open an account, and put up just 10 cents on the dollar to bet on a particular stock (no actual stocks were ever purchased). So if you had 50 cents you could borrow $4.50, and bet all $5 on the stock of your choice.
But the moment the value of the stock dropped, and you owed more than 90% of the stock's value, your position was closed and the shop kept the proceeds. The house won 95% of the time and most of their clients met financial ruin.
But not Jesse Livermore. Armed with his system, he soon found himself regularly beating the b ucket shops - at the tender age of 16!
Before long he was making so much money that he quit his job at Paine Weber and played the bucket shops full time. Alas, the game couldn't last forever and within a few short years Jesse had been banned from every bucket shop in Boston. Winners simply weren't welcome.
Jesse's $3 Million Windfall
Fortunately, Jesse was ready to take his strategies to Wall Street. And once he had successfully adapted them to the new environment, he began making money hand over fist. In fact, he did so well that by the year 1900 - when he was just 24 - he was able to travel to Europe, where he spent $12,000 ($253,000 in today's money) buying jewelry for his wife.
But it wasn't until the Panic of 1907 that Jesse really made his mark - and he did it in a big way. His analysis told him that the market was due for a serious correction. So he began shorting stocks like crazy. As he had foreseen, the market began dropping, and during the subsequent panic he made an astonishing $3 million ($58.6 million in 2003 dollars).
It seemed Jesse was on his way to tremendous fame and fortune. Even J.P. Morgan knew his name - and even asked for his help in stabilizing the stock market. It was a heady time for Jesse - but then he broke his own trading rules and within a year his $3 million fortune was gone.
The Secret to Jesse Livermore's Success
Jesse Livermore's success in the market came because he had created a strict system with iron-clad rules for trading that eliminated emotion, bias, and opinion from his buying and selling decisions.
And he followed that system regardless of what his emotions told him. If his numbers said buy, he bought. If they said sell, he sold - regardless of what others thought, said, or did.
He also had a hard and fast rule that required cutting his losses quickly when he was wrong - usually after losing just 10%. When he was right, however, he let his profits run - though never for too long. He was willing to leave money on the table if he could lock in a substantial profit right now. He'd seen too many investors get greedy, wait too long to sell, and then wind up losing their profits.
He also refused to listen to investment tips, regardless of their source. He'd seen too many people lose their shirts thanks to hot tips and "inside information." He wasn't about to let that happen to him - especially when he had a system that worked so well .
Livermore's unique systems-based approach is rare among investors and investment advisors today - but it is the basis for MST Trader Alert, the tremendously profitable investment service I mentioned at the beginning of this letter. And it works. Readers have had the opportunity to see profits of 45%... 48.8%... 50%... and even 62.1% by following a strict system modeled after Livermore's approach.
In a moment, I'll tell you all about MST Trader Alert and the windfall profits it can bring you in the days, weeks, and months ahead - but first let me continue with...
How J esse Livermore Lost it All
| "The only time I really ever lost money was when I broke my own rules." - Jesse Livermore |
And that's just what happened in 1908 when Livermore became friendly with the world's leading expert on the cotton market - Percy Thomas, "The Cotton King." Thomas was a knowledgeable, persuasive man, with thousand of spies throughout the South who regularly reported on crop conditions. And he was able to convince Livermore that supply and demand made it inevitable for cotton to go up in price - despite the fact that Livermore's own indicators showed exactly the opposite.
Unfortunately, Livermore was seduced by the power of Thomas' personality and wound up buying a large position in cotton - violating his strict rule against taking investment tips. It was one of the worst investment moves of his life.
Just as Livermore's indicators had warned, cotton be gan to fall almost immediately. But instead of selling - as his strict rules demanded - Livermore bought even more cotton. As cotton continued to fall, he actually sold a profitable position in wheat in order to meet a margin call. It was as if he'd thrown his rule book out the window.
By the time Livermore came to his senses and sold his position, he had just $300,000 left. He had lost $2.7 million practically overnight.
His confidence shattered, Livermore proceeded to make a series of bad investment decisions that not only cost him the rest of his money, but left him more than a million dollars in debt ($18.8 million in 2003 dollars).
Livermore's Triumphant Return
Many thought that was the end of Jesse Livermore, but he wasn't finished yet. Not even close. He simply stepped back, carefully analyzed what had gone wrong, and vowed never to make the same mistakes again.
And before long he was back on his feet, making money as quickly and easily as he had before. By 1916, he was once again a wealthy man and had repaid every one of his creditors - even paying off debts that had long since been forgiven through bankruptcy.
But he never forgot the lesson of 1908 - and never again followed or even listened to the advice of another trader. And during the 1920s he practically printed his own money as the stock market boomed.
However, as 1929 approached, he began to grow uneasy. Despite the optimism all around him on Wall Street, the numbers were telling him that things weren't quite right. In his view, the market was overheated and due for a massive correction - perhaps even a crash.
Livermore Makes a Fortune in the Great Crash
By the summer of 1929 he knew a top was near. He sold all his stocks and began shorting the market. By the time October rolled around, he was short more than a million shares - and profitable on almost all of them.
And then the market began to come apart, culminating on October 29, 1929 - Black Tuesday. The worst day in U.S. stock market history. As the market fell, Livermore covered his shorts. And when the dust settled, he had cleared an estimated $100 million - more than $1 billion in today's dollars. All in less than a year. And all because he stuck with his system and sold even as everyone else was screaming "buy."
After such a windfall, the 1930s should have been the best years of Livermore's life. ; Unfortunately, they proved to be among his worst. His success in the stock market had often come at the expense of his family - and now his neglect began to catch up with him as his family proceeded to fall apart.
Worse yet, all his life Livermore had battled clinical depression - although no one called it that back then - and in the 1930s it began to consume him, plunging nearly every day into a darkness from which he could not escape.
As a result, Livermore lost his passion for trading and eventually his will to live. And in 1940, just 11 years after his greatest stock market triumph, Livermore took his own life - a tragic end for the greatest stock market trader the world had ever seen.
Where Most Investors Go Wrong... and How You Can Get it Profitably Right
| "I believe that having the discipline to follow your rules is essential. Without specific, clear, and tested rules, speculators do not have any real chance of success. Why? Because speculators without a plan are like a general without a strategy, and therefore without an actionable battle plan. Speculators without a single clear plan can only act and react, act and react, to the slings and arrows of stock market misfortune, until finally they are defeated." - Jesse Livermore |
The good news is, you can escape that costly trap. And I'd like to help. My name is James Boric and I'm the editor of MST Trader Alert - a unique trading service that uses three powerful technical indicators to automate the investment selection process - takin g emotion out of it completely.
As you'll see in a moment, MST Trader Alert borrows heavily from the techniques and strategies taught and practiced by Jesse Livermore over his long and storied career. With MST Trader Alert in your corner...
- You'll have the opportunity to earn double and triple digit profits in both up and down markets, usually in a matter of just days or weeks.
- Your profits are automatic. When my MST system generates a buy signal, we buy. When it generates a sell signal, we sell. Period. No ifs, ands, buts, emotions, or outside opinions allowed.
- Your risk is controlled. I want to sleep at night - and I'll bet you do, too. That's why the system has three layers of profit protection - three technical indicators that must line up in exactly the same way before I'll make a recommendation.
- You'll never fear a bear market again. My system works just as well in a bear market as in a bull market - and brings you profits in both. And remember, Jesse Livermore made his biggest profits in bear markets
To learn more about the techniques and strategies taught and practiced by Jesse Livermore over his long and storied career - visit this link right now! <
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