![]() ![]() He created some of them, and borrowed others. You can find many of them in modern trading plans. So, what are some of the lessons we can learn from Jesse? And how he lost his fortune? Let’s take a look. Called “Reminiscences of a Stock Operator”, the book is still a Wall Street classic. In 1923, a financial journalist interviewed him and published a book on his life. What is unique is that Jesse made his money by trading with his own money. In today’s money, that would be between $10 and $15 billion. He was just 20 years old when he moved to New York to speculate in the stock and commodities market full time.Īt the peak of his fortune, Jesse had a net worth of $100 million. He studied price movements, fluctuations, and soon enough began to trade on the fluctuations. His job was a simple one, post the stock and commodities prices on the chalk board.īut Jesse was like a sponge. He was just 15 years old when he started to work in Paine Webber’s Boston brokerage office. A note was found in his pocket written to his wife saying “I’m unworthy of your love, I’m a failure.” Livermore thought the stock market was a puzzle he could solve and his goal was to conquer the market, but that goal was unattainable.Jesse Livermore, born in Massachusetts in 1877, is the pioneer of trading. ![]() On November 28, 1940, he walked into a cloak room in a fancy hotel, took out a gun and shot himself. Jesse had conquered and won the game, but he didn’t feel like he had won and once again he started losing all of his money. He learnt from last time and protected his wealth putting it into trust funds. Jesse was on top of the world, he owned mansions all over the world fully staffed with servants 24 hours a day. Another stock market crash came in 1929 and once again Livermore banked big time, making more than a $100 million, over a billion dollars in today’s money. Then came World War 1, Jesse saw the markets trending upwards and he rode the market up and down again making back everything. He lost everything he made and ended up going bankrupt. Livermore traded things he didn’t even understand, even commodities like cotton. Not long after that Jesse began breaking his own strategy and started taking stock tips from other traders. By this stage he was still in his 20’s and was able to retire, but not Jesse he still wanted to play the game. Then came the stock market crash of 1927, but Jesse saw this coming and shorted the market all the way down and made $3 million from the collapse. He became successful and began to create systems and rules for himself to follow so that he would consistently make money in the stock market. Jesse took all his money and went to New York City to become a stock trader. He didn’t see the stock market as a way to make money, he saw it as a game that he wanted to win.Įventually, Livermore was banned for life from bucket shops due to the amount of money he was making. Despite his early success Jesse still wasn’t satisfied. At the age of 15 he had made $1,000, which is about $20,000 in today’s money (probably more with all the inflation). So Jesse began placing bets on stock prices and he started making money. A bucket shop was a place where you could place your bets on stocks without the inconvenience of actually owning any stocks (nowadays this sort of activity is illegal). One of his buddies told him he was so good that he should be betting on the stocks. ![]() As time went on he started to see patterns in the numbers and was able to guess (with great accuracy) where the numbers would be at the end of the day. This involved him reading stock quotes off the ticker tape and then writing them on the big board so the stock brokers behind him could see what was going on in the stock market. Jesse got a job at Paine Webber (a stock brokerage firm) as a Board Monkey. So at the age of 15, he ran away from home and went to the big city of Boston to make his fortune. Jesse knew from a young age that farming wasn’t the life for him. ![]() Jesse’s father was a farmer, and he wanted Jesse to become a farmer. His story starts way back in 1877 when he was born on a small farm in Massachusetts. He’s a prime example of why money can’t buy happiness. He made millions on Wall Street yet his story is as sad as any Shakespeare tragedy. Jesse Livermore was one of the world’s greatest stock traders. ![]()
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