Reminiscences of a Stock Operator - Chapter VII Summary & Analysis

Edwin Lefèvre
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Chapter VII Summary and Analysis

Livingston discusses bull and bear markets. He describes how he stopped focusing on individual stocks to look at the market overall. One should always buy or go long on a rising market, and sell or go short on a falling market. Each trade should be at a higher price than the last on a rising market, or at a lower price than the last on a falling market. One should not trade on the temporary reversals but maintain one's position on the overall rise or fall. Livingston also explains how to test the market with an initial trade, only making follow-up trades if the first one brings a profit. Further, one can only sell shares of a stock if there are willing buyers. There is only so much stock for a particular company, and individual traders can strongly affect...

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This section contains 182 words
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