Jesse Livermore: ‘Men Who Can Both Be Right & Sit Tight Are Uncommon’

A quote from the greatest trader (Jesse Livermore) who ever lived seems apropos with today’s continued correction in gold and silver.  Do you have the internal fortitude to be right and sit tight, and add to your positions into price weakness?  Are you 100% sure of your fundamental convictions, or will you allow your emotions to panic you into changing your perspective and philosophy?

Gold was trading above $1900 last August on fears of a Eurozone conflagration and breakup. 
Today gold is trading at $1580 on fears of a Eurozone conflagration and breakup. 
It was the change in my own attitude toward the game that was of supreme importance to me. It taught me, little by little, the essential difference between betting on fluctuations and anticipating inevitable advances and declines, between gambling and speculating. I think it was a long step forward in my trading education when I realized at last that when old Mr. Partridge kept on telling the other customers, “Well, you know this is a bull market!” he really meant to tell them that the big money was not in the individual fluctuations but in the main movements that is, not in reading the tape but in sizing up the entire market and its trend.

And right here let me say one thing: After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: 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. I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make big money. It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance.
– Jesse Livermore