Monday, March 17, 2008

Jesse Livermore Proven Correct Once Again

Last week I wrote a bit about the importance of never ever trading on tips. Today Jeff Poor at brings us a great affirmation of this through the good works of the Head Carnival Barker(TM) of CNBC---

But, on March 11, (Jim) Cramer told an e-mailer not to sell the beleaguered investment bank’s stock on his show’s Web site:

“Dear Jim: Should I be worried about Bear Stearns in terms of liquidity and get my money out of there? --Peter
Cramer says: “No! No! No! Bear Stearns is not in trouble. If anything, they’re more likely to be taken over. Don’t move your money from Bear.”

Take that to the bank, Peter! Sheesh.
JC also used to say in the late 1990's that JDSU meant Just Don't Sell Us. But I digress. The important rule isn't that Cramer's a tool, it's that if you want to make money as a trader do NOT trade on tips-- or whatever you call the "suggestions" of people in the media. Just hit MUTE.