The stock market has certainly produced its share of heroes and villains over the years. And while villains have been many, the heroes have been few.
One of the good guys (for me, at least) has always been Jesse L. Livermore. He's considered by many of today's top Wall Street traders to be the greatest trader who ever lived.
Leaving home at age 14 with no more than five bucks in his pocket, Livermore went on to earn millions on Wall Street back in the days when they still literally read the tape.
Long or short, it didn't matter to Jesse.
Instead, he was happy to take whatever the markets gave him because he knew what every good trader knows: Markets never go straight up or straight down.
In one of Livermore's more famous moves, he made a massive fortune betting against the markets in 1929, earning $100 million in short-selling profits during the crash. In today's dollars, that would be a cool $12.6 billion.
That's part of the reason why an earlier biography of his life, entitled Reminiscences of a Stock Operator, has been a must-read for experienced traders and beginners alike.
A gambler and speculator to the core, his insights into human nature and the markets have been widely quoted ever since.
Here are just a few of his market beating lessons:
One of the good guys (for me, at least) has always been Jesse L. Livermore. He's considered by many of today's top Wall Street traders to be the greatest trader who ever lived.
Leaving home at age 14 with no more than five bucks in his pocket, Livermore went on to earn millions on Wall Street back in the days when they still literally read the tape.
Long or short, it didn't matter to Jesse.
Instead, he was happy to take whatever the markets gave him because he knew what every good trader knows: Markets never go straight up or straight down.
In one of Livermore's more famous moves, he made a massive fortune betting against the markets in 1929, earning $100 million in short-selling profits during the crash. In today's dollars, that would be a cool $12.6 billion.
That's part of the reason why an earlier biography of his life, entitled Reminiscences of a Stock Operator, has been a must-read for experienced traders and beginners alike.
A gambler and speculator to the core, his insights into human nature and the markets have been widely quoted ever since.
Here are just a few of his market beating lessons:
On the school of hard knocks:
The game taught me the game. And it didn't spare me rod while teaching. It took me five years to learn to play the game intelligently enough to make big money when I was right.On losing trades:
Losing money is the least of my troubles. A loss never troubles me after I take it. I forget it overnight. But being wrong - not taking the loss - that is what does the damage to the pocket book and to the soul.On trading the trends:
Disregarding the big swing and trying to jump in and out was fatal to me. Nobody can catch all the fluctuations. In a bull market the game is to buy and hold until you believe the bull market is near its end.On sticking to his plan:
What beat me was not having brains enough to stick to my own game - that is, to play the market only when I was satisfied that precedents favoured my play. There is the plain fool, who does the wrong thing at all times everywhere, but there is also the Wall Street fool, who thinks he must trade all the time. No man can have adequate reasons for buying or selling stocks daily - or sufficient knowledge to make his play an intelligent play.On speculation:
If somebody had told me my method would not work, I nevertheless would have tried it out to make sure for myself, for when I am wrong only one thing convinces me of it, and that is, to lose money. And I am only right when I make money. That is speculating.On respecting the tape:
A speculator must concern himself with making money out of the market and not with insisting that the tape must agree with him. Never argue with it or ask for reasons or explanations.On human nature and trading:
The speculator's deadly enemies are: Ignorance, greed, fear and hope. All the statute books in the world and all the rule books on all the Exchanges of the earth cannot eliminate these from the human animal.On riding the trend to the big money:
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.On the nature of Wall Street:
Wall Street never changes, the pockets change, the suckers change, the stocks change, but Wall Street never changes, because human nature never changes.So, what ever happened to Jesse L. Livermore?
He didn't die a poor man - not by any stretch of the imagination.
But he did take his own life, believing he was "a failure," which proves once again that money can't buy happiness.
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I thought he dead poor ?
You are quite wrong — when he died, he was worth about 75 million in today's money.
Please. Send info. Pcw
Am I mis-remembering or didn't, "One of the good guys (for me, at least) has always been Jesse L. Livermore" wind up in prison for insider trading & stock manipulation scams?
It was really nice to read a condensed series of some of Jesse Livermore's most famous quotes and I'll be sure to print this page out and keep it on my desk, thank you. Perhaps, not for all traders but certainly for a lot of traders, Jesse Livermore's status as a trader, is one that every trader tries to personify. Truth be said, he knew the big money was made in the big swings and he had the wisdom, risk taking guts, and the stamina to stay with his trade, add to his positions, and leverage to the max. Today's traders are much more concerned with locking in profits and scaling out. With all of our technology, high speed computer and hundreds of indicators, very few of us will ever be able to replicate his trading style and consequently, very few of us will ever be as rich as Livermore. Foremost, he was concerned with trading well, not so much the money, it was only a by product. Trade well, the money will come. It took me a very long time to understand what one another famous trader said in the book, New Market Wizards, when asked how big a trade did he put on, to which he replied, always place your maximum bet. Trading is a serious job, too many of us treat it like a hobby, when in fact, its a real business, risky business, but business, nonetheless. Thanks again for your quotes.
He simply said the speculator's worst enemies are — ignorasnce, greed, fear and hope. These are so self-evident, I am shocked, that in 21st century our culture has no idea about them. These are our basic traits that are driving our daily life. Sufis, centuries ago used, as their "icon", so to speak, a cartoon picture of a donkey driver with a whip in one hand, and a stick with carrot hanging down in the other. The whip of fear and carrot of hope. And the donkeys in their days followed this set up without ever revolting against it. Both combined, represent ignorance. So, now in the 21st century, are we any less of donkeys than history shows???
He was rich outside with decoration of money then he turned around made money become his God,he left real God and his soul became empty and poor had no joy but sad and sorrow, yes money can't buy real peace and happiness that only God can give,when he gives he gives freely no commission upfront.
Now, now, you are too judgemental. What do you know about his upbringing, to judge him like this? maybe you just want to make yourself better, by making other — successful people — look worse.
So, are you saying the money is NOT your God? then, why are you on this website??? This website is all about making money
Fred Stork
It is good to have the proper perspective to what Sam refers to. He is not saying it is bad to try and make money and to use your skill to earn above average returns… this is our job, but it is bad when you allow that money to become your god and when you love money more than God, your family, friends, and people in need. It is true that "the love of money is the root of all evil"…. that is if you truly think about that sentence.
Don't just come in with preconceived notions. Really think about that sentence and ask yourself why is the "love" of money the root of all evil? It corrupts, it is a way of power, of greed, of false concepts of the world and our purpose in the world. Fred you are a beautiful person and I don't want your mind to fall to the notion of what Sam brought up. Money is money, it is a medium and ability to fulfill needs. Sure, some people will inevitably become richer than their wildest dreams. But, it is a trap…. that is if they don't have the proper perspective. Just look at the majority of lottery winners. This is a horse beat to death but it is true that a majority of lottery winners misspend their winnings and end up in a worse state of health.
Proverbs 18:11 "The wealth of the rich is their fortified city; they imagine it an unscalable wall."
What Solomon is saying here is that the rich are more susceptible to allow their money to influence their heart and mind to believe they are invincible.
You do not have to be on this website to worship money. Pursuing education on money is just being responsible.
Sam you are right. It is in the bible that we can not serve both money and god… "money is the root of all evil".
I have read Livermore, it is a fantastic read and it gives you a parascope view of how they lived in those times during the early 1900s and 1920s. There is only 1 "Boy Plunger" and I am sad to see the way his life ended. His last wife was on her 5th marriage by the time she met Livermore…… all of her previous husbands committed suicide.
correction:
"The Love of money is s the root of all evil"
I do not believe money is the root of evil. Hear me out for a second please. Money is gold and silver and anything we place value on this earth. For instance to a farmer corn is money or a cow that produces milk that is sold in the market that gives you paper money. How is a cow the root of evil? How is gold a metal evil? How is any of these things evil? Of course everything is based on what we value. If you tried to sell trendy cloths to a monk he would not pay you a penny for it . There is no value in it for him. If you provided a meal he would gladly exchange something of equal worth. Money is not the root of evil. Food the earth provides is not evil, water and clothes and hard work and all that is good for mankind. It is only when greedy,fearful driven men who desire control and not love use money and root it to enslave others for his own survival and desires. There fore when god says money is the root of evil I believe he was saying money is the root of evil ONLY when fear and greed use it WITH one exception if you love money and another person loves money than you are both traped in the root of evil you set upon each other. For if you tried to control a monk with your greedy ways and desires he would look at you .With a blank stare and say no thanks you have no power over me.
LIVERMOOR'S STORY AND STYLE (including his prose) is an old story, but worth every trader's time to read periodically…. it's human nature to need reinforcement/reminders about worthwhile goals, as rereading the bible has demonstrated. for millions.
It would serve your subscribers if you would outline such reminders with a click-on for easier down-loading, printing and filing for future reading.
Thanx
He made his money by doing it himself ,today there is almost to much information out there and it is overwelming,not to mention the finiancial planners,(salesman) who are on commission and have mentality that no one can think for themselves,with their phoney baloney lingo. BUY AND HOLD ,don't take a profit, it is a soft landing things will rebound ,and don't ever buy gold.Give me a break.
Well, ah…