Jesse Livermore - Memoirs of a Stock Speculator
One of the most odious figures in trading, Jesse Livermore could not survive the fourth fall, which proved fatal.
To learn and understand the methods of the legendary Great Bear, Edwin Ledefre's book "Memories of a Stock Speculator"which, according to many, is partly written by its hero himself. It sets out in some detail a risk-free approach Jesse LivermoreThe great trader laid down the basic principles of technical and fundamental analysis, pointing out the main signals indicating entry into the market and emphasizing the importance of studying the companies themselves and the situation in the country as a whole. The great trader laid down the basic principles of technical and fundamental analysis, pointing out the main signals indicating entry into the market, as well as emphasizing the importance of studying the companies themselves and the situation in the country as a whole. The Great Bear himself, as his nickname suggests, favored the downside, twice anticipating global market crashes in 1907 and 1929. The greatest proof of his power and authority is that his intervention was suspected in most of the changes and collisions on Wall Street in the early twentieth century.
Jesse Livermore's first steps in the stock market.
Realizing an aversion to farm life and a desire for something different, Jesse Livermore left home at the age of 16. It so happened that his first job was at a brokerage firm, where he transcribed price quotes. Soon the guy noticed that he could predict price changes by writing down his predictions in a notebook and then checking them against the received data. Deciding to take a risk and use his discovered talent in a real game, Jesse earned his first winnings. After a while, he became the storm of all the brokerage houses in the area, as he robbed them dry.
However, the local businessmen did not put up with the overly capable boy and threw him out at the first appearance, so Jesse Livermore decided to go one step higher and try his hand on the legendary Wall Street. The conquest of New York from the start failed: here were completely different realities and conditions, and the slightest failure could wipe out the recently successful businessman. The first experience of playing in the financial capital of the United States was a good school of life for Livermore, who decided to accumulate capital for a new attempt. To this end, he traveled to that part of America, which was not yet familiar with the activities of the "Gambler Boy", and "milked" the necessary money from local offices. From this time began a mature period in the life of Jesse Livermore, his formation as the most successful and mysterious speculator of modernity.
Jesse Livermore's major failures
The main lesson that the Great Bear learned from his failures. second-guessand rely only on themselves. As Livermore reasonably noted, the market is not to blame for his failures, but only the player himself. It is important not to give in entirely to the feeling of success, but to remain cool and steady in a winning situation. It is important for a professional trader to keep his emotions in check if he wants to stay afloat. Livermore also emphasized the positive value of mistakes made, which he saw as a learning curve.
However, the great speculator himself could not always stick to his chosen course, suffering four major defeats in battles with the markets and twice declaring himself bankrupt. The last setback in the 1930s broke the previously unbreakable will Livermorewho, unable to return to his former glory, committed suicide. His generation quickly forgot about the recent king of the stock market, and subsequent players on Wall Street frankly underestimated one of the strongest traders in history.