A New Modern Day Jesse Livermore

15 Jun
June 15, 2013
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Jesse Stine has audited results of turning $46k into $6.8 million in 28 months (14,972%). As far as he knows he is the post internet bubble record holder among retail traders. Dan Zanger still holds the world record.

This book is a tale of blow ups and making millions. I believe fans or Jesse Livermore and Nicolas Darvas will enjoy this story and find the authors methods very interesting, I did.

In “Superstocks”, author Jesse Stine explains in detail the principles he used to make millions in the market. But do not be confused, he was not a hot shot going straight to a million dollars. Jesse paid his dues for his trading education, blowing out trading account after account due to bad risk management. I think it was six times in all that he virtually lost so much of his money trading he had to start all over again and recapitalize. I love his quote, paraphrased “I did not crawl back into a cubicle.” No, he did not go get a 9-5 J-O-B he fought back to become a millionaire many times over. Then was able to take time off and travel the world at his leisure.

How did he accomplish this? His primary strategy is contrarian in nature, at least in finding the inflection points at the beginning of trends and reversals. Jesse was and is that guy that buys into IBD 100 stocks (Now IBD 50)while they are priced in the single digits and rides them up as they hit the Investor’s Business Daily Top 50 as they break over $15 a share and make the list out of nowhere. He is looking to get out as others are just discovering the stock and looking to get in. He notes how these stocks typically top out around $25-$30 where he looks for his exit, and it is true in most cases.

Jesse is a techno-fundamentalist to be interested in a particular stock, he needs not only many of the fundamental CAN SLIM criteria, but also for the chart to be appealing in a clean base or breaking out of one. He really needs to see committed insider buying also to be convinced to take big positions. Once he is in he looks for key longer term moving averages to hold as support during the stocks run called ‘magic lines’ where buyers are accumulating the stock and supporting it on pull backs.

This book is a great contribution to trading literature with a real speculator sharing his tactics for making seven figures. He reminds me of a combination of Jesse Livermore being able to “shoot the works” when he knew the odds were deeply in his favor and also Nicolas Darvas’s endless search for the next monster stocks. This book builds on the principles of trading success and adds new tactics to make huge gains on a percentage and dollar basis. I highly recommend. Book Link to “Insider Buy Super Stocks”


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