In his 1940 book, "How to Trade in Stocks," Jesse L. Livermore gives
step-by-step guidance on reading market and stock behaviors, analyzing
market sectors, market timing, money management and emotional control.
Livermore said there are just a handful of times each year when he would be active--near the intermediate-term turning points in the market. Other than that, he let his account his idle, either holding his winners, or patiently sitting in cash, preparing for the big swing when the market changed course.