Abraham Germansky was a multimillionaire real estate developer in the 1920s. He
also loved stocks, betting heavily as the market boomed. As the crash of
1929 unfolded, he was wiped out.
And that was basically the end of Abraham Germansky.
Germansky disappeared on October 24th, 1929. The New York Times posted a short story near the back of its October 26th edition, with Germansky's lawyer, Bernard Sandler, asking for information on his whereabouts. It tells a powerful story in just a few words:
Later that week another investor in the same city had a very different
experience.
Jesse Livermore returned home on October 29th to a wife who, seeing news of
the day's record market crash was prepared to console her husband and
return to a life of frugality.
Jesse said that wasn't necessary. He was short the market and made more
money in the crash of 1929 than during the rest of his life combined.
"You mean we are not ruined?" his wife asked, according to Livermore's
biography.
He replied: "No darling, I have just had my best ever trading day – we are
fabulously rich and can do whatever we like." He made, in one day, the equivalent of $3 billion.
As per Wikipedia Jesse Lauriston Livermore (July 26, 1877 – November 28, 1940) was an American stock trader. He is considered a pioneer of day trading and was the basis for the main character of Reminiscences of a Stock Operator, a best-selling book by Edwin Lefèvre. At one time, he was one of the richest people in the world; however, at the time of his suicide, he had liabilities greater than his assets.
In a time when accurate financial statements were rarely published, getting current stock quotes required a large operation, and market manipulation was rampant, Livermore used what is now known as technical analysis as the basis for his trades. His principles, including the effects of emotion on trading, continue to be studied.
Some of Livermore's trades, such as taking short positions before the 1906 San Francisco earthquake and just before the Wall Street Crash of 1929, are legendary and have led to his being regarded as the greatest trader who ever lived.
Polar opposite stories. Germansky went broke, Livermore became the richest man in the world. But fast-forward four years and the stories end up nearly identical. Livermore made larger and larger bets and went on to lose everything in the stock market. Broke and ashamed, he disappeared for two days in 1933. His wife set out to find him. "Jesse L. Livermore, the stock market operator, of 1100 Park Avenue missing and has not been seen since 3pm yesterday," the New York Times wrote in 1933. He returned, but his path was set. Livermore eventually took his own life.
The timing was different, but Germansky and Livermore shared the realization that getting rich is one thing. Staying rich is quite another. Everything in the economy is cyclical. Nothing great or terrible is likely to stay that way for long, because the same forces that cause things to be great or terrible also plant the seeds to push them the other way. Bull markets make stocks expensive, expensive stocks leave little room for error and little room for error increase the odds of bull markets ending. Same thing in the other direction.
Recessions cause pessimism. Pessimism causes underproduction, underproduction leads to scarcity, scarcity leads to a new boom. People and companies, whose behaviors are changed by their own success, are vulnerable to the same cycles.I've noticed a pattern: Getting rich can be the biggest impediment to staying rich. It goes like this. The more successful you are at something, the more convinced you to become that you're doing it right. The more convinced you are that you're doing it right, the less open you are to change. The less open you are to change, the more likely you are to tripping in a world that changes all the time.
There are a million ways to get rich. But there's only one way to stay rich: Humility, often to the point of paranoia.The irony is that few things squash humility like getting rich in the first place. It's why the composition of Dow Jones companies changes so much over time, and why the Forbes list of billionaires has a 60% turnover per decade.
MORAL
Many people make profits in the market but the ones who can sustain the profits & can wisely reinvest are the 5-10% who Create Wealth otherwise, most of them loose there profits make losses, get frustrated & leave the market!
With this premise, we make sure that our traders trade with financial prudence and make the best profit of their life by using the Indian share market tips where they trade for minimum time and in minimum scrips to get the optimised profit. Are you ready to get into the next league of getting profit on a daily basis.
Germansky disappeared on October 24th, 1929. The New York Times posted a short story near the back of its October 26th edition, with Germansky's lawyer, Bernard Sandler, asking for information on his whereabouts. It tells a powerful story in just a few words:
As per Wikipedia Jesse Lauriston Livermore (July 26, 1877 – November 28, 1940) was an American stock trader. He is considered a pioneer of day trading and was the basis for the main character of Reminiscences of a Stock Operator, a best-selling book by Edwin Lefèvre. At one time, he was one of the richest people in the world; however, at the time of his suicide, he had liabilities greater than his assets.
In a time when accurate financial statements were rarely published, getting current stock quotes required a large operation, and market manipulation was rampant, Livermore used what is now known as technical analysis as the basis for his trades. His principles, including the effects of emotion on trading, continue to be studied.
Some of Livermore's trades, such as taking short positions before the 1906 San Francisco earthquake and just before the Wall Street Crash of 1929, are legendary and have led to his being regarded as the greatest trader who ever lived.
Polar opposite stories. Germansky went broke, Livermore became the richest man in the world. But fast-forward four years and the stories end up nearly identical. Livermore made larger and larger bets and went on to lose everything in the stock market. Broke and ashamed, he disappeared for two days in 1933. His wife set out to find him. "Jesse L. Livermore, the stock market operator, of 1100 Park Avenue missing and has not been seen since 3pm yesterday," the New York Times wrote in 1933. He returned, but his path was set. Livermore eventually took his own life.
The timing was different, but Germansky and Livermore shared the realization that getting rich is one thing. Staying rich is quite another. Everything in the economy is cyclical. Nothing great or terrible is likely to stay that way for long, because the same forces that cause things to be great or terrible also plant the seeds to push them the other way. Bull markets make stocks expensive, expensive stocks leave little room for error and little room for error increase the odds of bull markets ending. Same thing in the other direction.
Recessions cause pessimism. Pessimism causes underproduction, underproduction leads to scarcity, scarcity leads to a new boom. People and companies, whose behaviors are changed by their own success, are vulnerable to the same cycles.I've noticed a pattern: Getting rich can be the biggest impediment to staying rich. It goes like this. The more successful you are at something, the more convinced you to become that you're doing it right. The more convinced you are that you're doing it right, the less open you are to change. The less open you are to change, the more likely you are to tripping in a world that changes all the time.
There are a million ways to get rich. But there's only one way to stay rich: Humility, often to the point of paranoia.The irony is that few things squash humility like getting rich in the first place. It's why the composition of Dow Jones companies changes so much over time, and why the Forbes list of billionaires has a 60% turnover per decade.
MORAL
Many people make profits in the market but the ones who can sustain the profits & can wisely reinvest are the 5-10% who Create Wealth otherwise, most of them loose there profits make losses, get frustrated & leave the market!
With this premise, we make sure that our traders trade with financial prudence and make the best profit of their life by using the Indian share market tips where they trade for minimum time and in minimum scrips to get the optimised profit. Are you ready to get into the next league of getting profit on a daily basis.
You
should Trade Less But Trade Accurately & this is Achieved with our Tip.
