The Dow Jones industrial average fell forty six percent

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From nineteen oh one to nineteen oh three the Dow Jones industrial average fell forty six percent in nineteen oh six oh seven it fell forty nine percent nine years to recover by the way nineteen sixteen to nineteen seventeen forty percent nineteen nineteen to nineteen twenty one forty seven percent nineteen twenty nine nineteen thirty two eighty nine percent to twenty two years to recover nineteen thirty nine to forty to forty percent nineteen seventy three to seventy four forty five percent we know that there were two major downturns in the first thirteen years of this century significant over forty in over fifty percent we know that will happen again why well Jesse Livermore was possibly the greatest trader that ever lived in nineteen twenty nine when the market crashed this gentleman made over a hundred million dollars in nineteen twenty nine it's like one point four billion dollars today you can live on account of money here's what Livermore set he said there was nothing new on while Wall Street or in stock speculation what has happened in the past will happen again and again and again this is because human nature does not change in his human emotion that always gets in the way of human intelligence he said there were three things that you when I needed to be a student of to be successful in the market he said as successful speculator remains a constant student of three things in the first thing was emotional control he said before you can successfully be in the market you must have a clear concise strategy and stick to it how beneficial would be if you could go to a campus attended telegraph where people are creating trading plants investing plants themselves that are clear and concise and then there's a systematic approach surrounding them to support them while they move into putting that into place the next thing he said we already talked about money management we call risk manager they called money managers he said don't lose money why would you sit there and give the money back what we know majority of Americans was forty percent of net worth between two thousand seven and two thousand and ten and a majority of Americans financial planners and stock brokers and what's happened in the past is like you said will happen again buy and hold is not a strategy it's a whole the third thing he said when he speaks to why buy and hold as we said market timing he said you need to learn when to enter and want to exit addition and that's the reality of what we've been talking about from the first minute we started this program today that risk management is as important as generating profits in the market there have been people in the last ten years who have created significant wealth in the marketplace guess

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