Reminiscences of a Stock Operator is adapted from a series of Saturday Evening Post articles written by Edwin Lefevre in the 1920s. The book narrates Livermore's ascent from a "Boy Plunger" to the most influential speculator on Wall Street. While much of the book is devoted to Livermore's experiences, a larger part of the book deals with trading wisdom and rules that Livermore imparts through Lefevre. Years later, many trading and investing books repeat the very same rules first enunciated by Livermore in Reminiscences, such as: go with the trend, no stock is too high to buy or too low to sell, let your winners run and cut your losses short, make your own decisions and market history repeats itself. Interestingly, Livermore frequently violated his own rules and usually lost money as a result. The enduring appeal to the book rests in Livermore's view that the market is made up of people and the excesses of the market reflect mass psychology and the mistakes of individuals are frequently the result of the inability to control fear and greed. Thus, the views and lessons of Livermore continue to be relevant to every new generation of investors and traders.
Reminiscences of a Stock Operator is a 1923 roman à clef by American author Edwin Lefèvre which is the thinly disguised biography of Jesse Lauriston Livermore. The Wall Street Journal described the book as a "classic", it was ranked #15 on 'Fortune's 75 The Smartest Books We Know', and Alan Greenspan said it is "a font of investing wisdom.
“It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I've known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level which should show the greatest profit. And their experience invariably matched mine--that is, they made no real money out of it. Men who can both be right and sit tight are uncommon.”
--- Edwin Lefèvre
981 Investors Online.