"It isn't as important to buy as cheap as possible as it is to buy at the right time"
About this Quote
Livermore’s line is a cold shower for bargain-hunters who confuse thrift with skill. In markets, “cheap” is a trap word: it flatters the ego with the feeling of prudence while quietly ignoring the only thing that actually moves your P&L - price direction. Livermore isn’t preaching patience as a virtue; he’s selling a harsher discipline: stop trying to be clever about pennies and start being right about momentum.
The intent is tactical. Buying “as cheap as possible” assumes price is an inherent value signal, that low equals safe. Livermore, a speculator forged in bucket shops and boom-bust cycles, treats price as a narrative in motion. A stock can look cheap for months while the trend keeps bleeding you; a stock can look expensive and still be the beginning of a historic run. “The right time” is code for confirmation - the market showing its hand, not you guessing at the bottom.
The subtext is also psychological. Bargain-buying offers moral cover: if you lose, at least you were “disciplined.” Timing strips away that comfort. You’re accountable to the tape, to the crowd’s changing beliefs, to the embarrassing possibility that the market knows more than you. Livermore’s era - the churn of early 20th-century speculation, thin regulation, fast rumor - rewarded traders who could read sentiment and survive volatility. His advice still lands because it attacks a modern habit too: treating investing like shopping, when it’s closer to combat with your own impatience.
The intent is tactical. Buying “as cheap as possible” assumes price is an inherent value signal, that low equals safe. Livermore, a speculator forged in bucket shops and boom-bust cycles, treats price as a narrative in motion. A stock can look cheap for months while the trend keeps bleeding you; a stock can look expensive and still be the beginning of a historic run. “The right time” is code for confirmation - the market showing its hand, not you guessing at the bottom.
The subtext is also psychological. Bargain-buying offers moral cover: if you lose, at least you were “disciplined.” Timing strips away that comfort. You’re accountable to the tape, to the crowd’s changing beliefs, to the embarrassing possibility that the market knows more than you. Livermore’s era - the churn of early 20th-century speculation, thin regulation, fast rumor - rewarded traders who could read sentiment and survive volatility. His advice still lands because it attacks a modern habit too: treating investing like shopping, when it’s closer to combat with your own impatience.
Quote Details
| Topic | Investment |
|---|---|
| Source | "It isn't as important to buy as cheap as possible as it is to buy at the right time." — Jesse Livermore. Source: Wikiquote entry for Jesse Livermore (compiled quotation). |
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