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Showing posts with label Jesse Livermore. Show all posts
Showing posts with label Jesse Livermore. Show all posts
Saturday, July 16, 2016
Sunday, July 10, 2016
Jesse Livermore Rules for Money Management
Text written by Alton Hill co-founder of Tradingsim.com
For all of those who may not know Jesse Livermore, he was one of the greatest traders of the 20th century. He started out in bucket shops and was later able to amass a fortune equivalent to billions of dollars today. Livermore's rules for trading were sound and have sparked interest in the trading community for the last 75+ years. In this article, we are going to discuss the money management rules Jesse Livermore used when trading. These money management principles are just as valid today as they were when the market crashed in 1929.
For all of those who may not know Jesse Livermore, he was one of the greatest traders of the 20th century. He started out in bucket shops and was later able to amass a fortune equivalent to billions of dollars today. Livermore's rules for trading were sound and have sparked interest in the trading community for the last 75+ years. In this article, we are going to discuss the money management rules Jesse Livermore used when trading. These money management principles are just as valid today as they were when the market crashed in 1929.
Rule 1: Don't Lose Money
This is a simple of enough concept right? Well if it was this easy, we all would be millionaires. However, Jesse Livermore is laying out the basic tenet that a "speculator" should do everything in their power to stay in the trading game. So, one should not place all of their funds in one position. Also, it is not in the best interest of a trader to establish their entire position at once. Jesse Livermore believes that traders should enter trades in lots, where you would purchase your first 25% of shares at a pivot point and then continue to add to this position until you are able to take a full stake. The goal here is to add to a position as it goes in your favor, which again will prevent the loss of funds, because if you are wrong you can easily exit the position. This may work well for larger investors, or investors with longer timeframes, but I do not think this will work well for day traders, as this will dramatically increase your trading costs.
Rule 2: Always establish a stop
Jesse Livermore stated that a stop is one of the most important parts of trading. Livermore felt that a stop should be established prior to entering a trade. This stop should take in account for the size of your account and the volatility of the stock you are trading. Livermore's personal rule was that he would not risk more than 10% on any one trade. Livermore also stressed the fact that your stop, if hit should not generate a margin call. He felt that the last thing a trader should do is fund their account for a margin call. This is a recipe for producing massive losses, which is a direct contradiction of Rule#1. Livermore called traders who did not establish stops, "Involuntary Investors". Livermore described involuntary traders as people who buy and hold a stocks in hopes that they will rally. These traders will not sell their stocks for any reason until their targets are met."
Rule 3: Keep cash in reserve
Livermore felt that cash is king. A trader without cash is equivalent to Blockbuster with no movies. Livermore stressed that traders must fight the urge to constantly be in a position. This desire to constantly trade will tie up capital, that should be used for more promising opportunities. So, Jesse Livermore felt that a traders should always keep a portion of their account in cash, so that you are armed to take what the market offers you. Patience is the key to success, not speed.
Rule 4: Let the position ride
This for me is the hardest part of trading. I will at times put on two or more losing trades, which then affects my perception of risk and the market. Then on my fourth trade or so, I will put on a position and close it out right before it gives me a huge gain, because I have been conditioned to now believe that the market is only offering small moves. This part of trading, is proving to be my own personal struggle. Livermore believed that a trader that is able to keep their losses small and let their winners run would ultimately be successful at the game. He felt that if you were right in your position and nothing about the trade told you otherwise, that you should hold that trade as long as possible. Traders should be overly concerned and monitoring losing positions, but with winners, you should just let them run. Now this rule does not have any place for apathy. You should not go out and simply buy and hold a position forever. Remember, even with winners, you still must have a stop in place, do not forget money management Rule #2.
Rule 5: Take the profits in cash
Jesse Livermore felt that after a huge winning trade, you should take 50% of that and place it in cash. This money should be put aside in the bank, hold it in reserve, or lock it up in a safe-deposit box. I do not necessarily agree with this money management rule, because if you treat your investment wins as if they are going to eventually leave you, this must have some affect on your subconscious, which in turn will hurt your profits. I think if you put aside maybe 20% and then treat yourself to a nice dinner or a small shopping spree is better because it provides you positive reinforcements of your trading activities.
It is a shame that Jesse Livermore was unable to follow his own money management rules, because if he had, maybe his life would not have ended so tragically.
- See more at: http://tradingsim.com/blog/jesse-livermore-money-management/#sthash.xpjKmLch.dpuf
http://investorji.in/jesse-livermore-money-management.html
Friday, July 8, 2016
How Jesse Livermore Made and lose Fortunes in the Stock Market
Legendary Trader - Jesse Livermore
Jesse Livermore was a notorious stock market speculator during the first half of the 20th century. He was a major force on Wall St in markets that were plagued by the same hopes and fears as today's. “Reminiscences of a stock operator” in 1923 offers timeless insight and wisdom for traders offered by Livermore. Lessons taught can be applied to today’s markets:
- Use a system and don’t deviate from it.
- If a market doesn’t act right do not touch it; being unable to tell precisely what is wrong, means you cannot tell which way the market is going.
- Don’t blame the market for losses.
- Do not seek to lure profit back. Quit while the quitting is good- and cheap.
- A Speculators chief enemy is boredom, don’t seek a trade let the trade seek you.
- Use money management at all times.
- Establish a trading plan.
- Detail and analyse each trade thoroughly.
- Establish entry and exit points and risk reward ratios.
- Accept small losses as part of the game.
- Do not concentrate on breakeven levels when you are losing.
- Develop a trading plan for every possible situation that might occur.
- Follow exit plans with rigid discipline.
- Do not be overly cautious, simple trades are best.
- Sustain patience; big movements can take a long time.
We hope these pearls of wisdom help.
Thursday, July 7, 2016
SUPER TRADERS
An interesting article from: http://supertrader1.blogspot.ca/
In real world, is there any super trader?
Below is the super trader list and how they turn small amount of money into million dollars in short period of time:
• Arthur Cutten: Turned $1,000 dollars into over $90 million dollars.
• Richard Dennis: Turned $400 into $200 million in 10 years.
• Ken Griffin: Started in a dorm room and at 38 is worth $3 billion.
• Dan Zanger: Pyramid $10,775 into $42 million in less than 3 years.
• Michael Marcus: Rolled out a $30,000 account into over $80 million.
• Tom Baldwin: Parlayed $25,000 into over $2 billion.
• Ed Seykota: Made 250,000 percent return on his account over 16 years.
• Nicolas Darvas: Leveraged $25,000 into $2.25 million in 18 months.
• Michael Lauer: Provided investors with a 50-fold return over 7 years.
• Mark Cook: Registered back to back gains of 563% and 322%.
• Jesse Livermore: Traded $500 into $100 million - $0 into $100 million
• Steve Lescarbeau: Averaged 70% return every year.
• Stanley Kroll: Took $18,000 and turned it into a cool million in a year or so.
• David Tepper: Earned more than $2.5 billion for himself in 2009.
• Paul Tudor Jones: Made triple digit returns 5 years in a row. In 2006 he earned $750 million.
• Steve Cohen: Manages billions of dollars & averaged returns of 90% during the past 7 years.
• Mark Minervini: Averaged 220% annual returns in the past five years.
• Bernard Baruch: Became a trading millionaire by the age of thirty-five.
• W.D. Gann: Averaged $1 million per annum over a 50-year trading career.
• Eddie Lampert: Traded his way to a net worth of $3.5 billion while still in his 40s.
• Steven Schonfeld: Put $100,000,000 + in his pocket last year.
• John Burbank: Put $300,000,000 + in his pocket last year.
• George Soros: A survivor of the Battle of Budapest netted $2.9 billion in 2007.
• Larry Fink: Controls more money than Germany has GDP.
• Warren Buffett: Became the 3rd wealthiest person in the world.
• Martin Schwartz: Earned $300,000-$500,000 per month day trading the S&P.
• Jim Cramer: Routinely taken home $10 million a year and more.
• Bruce Kovner: Borrowed $3,000 on a credit card and turned it into $2.5 billion.
• Who will be next super trader?
Super trader never trade based on feeling. They trade based on data or fact. They utilize some trading tools to help them make the decision. If you trade based on your feeling, then you are trying your luck. If you have good luck, then you make money and vice versa. Unfortunately, you do not know whether your luck is good or not until the trading result had been come out.
If you want to make money for short period of time only, then you can trade based on your feeling. If you want to make money for long run, then you must trade based on data.
Why Trade Forex
1. Trade 24 Hours
Forex gives traders the opportunity to trade 24 hours. As a forex trader, you can trade at the Monday morning when the Sydney market is open until Friday when the New York market is close. If you are in United States, the forex trading time is from Sunday 5.00pm (ET) until Friday 5.00pm (ET). You can choose your own schedule which is convenient to you to trade.
2. High Levels of Liquidity
Every day there is 3.2 trillion dollars traded. This make forex as the largest financial market in the world. You can buy or sell almost instantaneously.
3. Benefit From Up or Down
You can go long or go short for the currency. In other words, you can buy the currency and sell it later or you can sell it first (although you do not have the currency at that time) and buy back later. Since you can buy or sell, then volatility is trading opportunity.
4. Access To All
A few years back, forex trading is only done by brokers with high commissions. Nowadays, as long as you have internet connection, you can trade forex in your office, home or at the beach. You can even start to trade forex by depositing small amount such as $100.
5. No Commissions
In forex trading, there are no brokerage commissions, government fees and exchange clearing fees. There is only spread which is the difference between the bid / ask price. This make forex as an attractive money making opportunity.
An interesting article from: http://supertrader1.blogspot.ca/
Related links: http://www.supertradertraits.com/STT-eBook.html
Image from: http://blackdogforex.com/best-forex-signal-service/
Forex trading tools of super trader. Super Traders trade forex based on fact, not feeling.
Super Trader Secret - Forex Trading Tools
In real world, is there any super trader?
Below is the super trader list and how they turn small amount of money into million dollars in short period of time:
• Arthur Cutten: Turned $1,000 dollars into over $90 million dollars.
• Richard Dennis: Turned $400 into $200 million in 10 years.
• Ken Griffin: Started in a dorm room and at 38 is worth $3 billion.
• Dan Zanger: Pyramid $10,775 into $42 million in less than 3 years.
• Michael Marcus: Rolled out a $30,000 account into over $80 million.
• Tom Baldwin: Parlayed $25,000 into over $2 billion.
• Ed Seykota: Made 250,000 percent return on his account over 16 years.
• Nicolas Darvas: Leveraged $25,000 into $2.25 million in 18 months.
• Michael Lauer: Provided investors with a 50-fold return over 7 years.
• Mark Cook: Registered back to back gains of 563% and 322%.
• Jesse Livermore: Traded $500 into $100 million - $0 into $100 million
• Steve Lescarbeau: Averaged 70% return every year.
• Stanley Kroll: Took $18,000 and turned it into a cool million in a year or so.
• David Tepper: Earned more than $2.5 billion for himself in 2009.
• Paul Tudor Jones: Made triple digit returns 5 years in a row. In 2006 he earned $750 million.
• Steve Cohen: Manages billions of dollars & averaged returns of 90% during the past 7 years.
• Mark Minervini: Averaged 220% annual returns in the past five years.
• Bernard Baruch: Became a trading millionaire by the age of thirty-five.
• W.D. Gann: Averaged $1 million per annum over a 50-year trading career.
• Eddie Lampert: Traded his way to a net worth of $3.5 billion while still in his 40s.
• Steven Schonfeld: Put $100,000,000 + in his pocket last year.
• John Burbank: Put $300,000,000 + in his pocket last year.
• George Soros: A survivor of the Battle of Budapest netted $2.9 billion in 2007.
• Larry Fink: Controls more money than Germany has GDP.
• Warren Buffett: Became the 3rd wealthiest person in the world.
• Martin Schwartz: Earned $300,000-$500,000 per month day trading the S&P.
• Jim Cramer: Routinely taken home $10 million a year and more.
• Bruce Kovner: Borrowed $3,000 on a credit card and turned it into $2.5 billion.
• Who will be next super trader?
Super trader never trade based on feeling. They trade based on data or fact. They utilize some trading tools to help them make the decision. If you trade based on your feeling, then you are trying your luck. If you have good luck, then you make money and vice versa. Unfortunately, you do not know whether your luck is good or not until the trading result had been come out.
If you want to make money for short period of time only, then you can trade based on your feeling. If you want to make money for long run, then you must trade based on data.
Why Trade Forex
1. Trade 24 Hours
Forex gives traders the opportunity to trade 24 hours. As a forex trader, you can trade at the Monday morning when the Sydney market is open until Friday when the New York market is close. If you are in United States, the forex trading time is from Sunday 5.00pm (ET) until Friday 5.00pm (ET). You can choose your own schedule which is convenient to you to trade.
2. High Levels of Liquidity
Every day there is 3.2 trillion dollars traded. This make forex as the largest financial market in the world. You can buy or sell almost instantaneously.
3. Benefit From Up or Down
You can go long or go short for the currency. In other words, you can buy the currency and sell it later or you can sell it first (although you do not have the currency at that time) and buy back later. Since you can buy or sell, then volatility is trading opportunity.
4. Access To All
A few years back, forex trading is only done by brokers with high commissions. Nowadays, as long as you have internet connection, you can trade forex in your office, home or at the beach. You can even start to trade forex by depositing small amount such as $100.
5. No Commissions
In forex trading, there are no brokerage commissions, government fees and exchange clearing fees. There is only spread which is the difference between the bid / ask price. This make forex as an attractive money making opportunity.
An interesting article from: http://supertrader1.blogspot.ca/
Related links: http://www.supertradertraits.com/STT-eBook.html
Image from: http://blackdogforex.com/best-forex-signal-service/
Labels:
forex,
Jesse Livermore,
market wizards,
retail trader,
super trader,
trader
Saturday, June 25, 2016
Jesse Livermore, retail trader role model
The text below was written by Lucinda Shen and published on the website BusinessInsider.com
The original link is http://www.businessinsider.com/the-life-of-jesse-livermore-2015-7
The Library of Congress
The text above was written by Lucinda Shen and published on the website BusinessInsider.com
The original link is http://www.businessinsider.com/the-life-of-jesse-livermore-2015-7
Interesting links:
http://www.jesselivermore.com/
http://www.businessinsider.com/wall-street-reading-list-2015-6?op=1
The original link is http://www.businessinsider.com/the-life-of-jesse-livermore-2015-7
Why Wall Street traders are obsessed with Jesse Livermore
- Jul. 17, 2015, 11:03 AM
This is the man who inspired "the trader's bible": Jesse Lauriston Livermore, the mold for Edwin Lefevre's "Reminiscences of a Stock Operator."
Wall Street is obsessed with him.
Livermore led a life of brilliance and excess, surrounded by mistresses, scandals, money, and bankruptcy. He was a legendary trader who played big and made millions during the crash of 1929.
But by 1934, Livermore would have depleted the $100 million fortune he earned on the stock market just five years earlier. He declared a third bankruptcy, went through his second divorce, and committed suicide in 1940 — the newspapers then detailing his scandals rather than the achievements of his earlier days.
This is his life.
Quotes from Wiley's "Reminiscences of a Stock Operator" by Edwin Lefevre. Historical information from Tom Rubython's "Jesse Livermore — Boy Plunger: The Man Who Sold America Short."
Jesse Livermore was born in 1877 to a family of farmers and learned to read and write by the time he was 3 1/2.
The youngest of three and a surprise baby, Livermore received almost no attention from his father, though his mother was determined to raise Jesse Livermore on the "finer things in life" — and Livermore picked up quickly.
He learned to read and write by the time he was 3 and a half. By the time he was 5, he was reading newspapers and devouring the financial pages.
But his father was a pragmatist. When Jesse turned 14, Jesse Livermore's father pulled him out of school to make money farming.
Young and determined, Livermore left home by carriage.
At 14, he charmed his way into a job as a board boy at banking company, Paine Webber.
Instead of going to the address set by his mother, young Jesse Livermore persuaded the driver to stop at Paine Webber, a Boston stockbroker.
He was enthralled.
At the time, Livermore appeared six years older than his age, and "people immediately trusted him and ... Jesse Livermore always repaid that trust," Rubython wrote.
He got a job as a Paine Webber board boy on $5 a week.
He bought his first share at 15 and got a profit of $3.12 from $5 after teaching himself about trends.
Livermore tracked the ticker numbers in his journal and realized there was nothing random about them.
Finally, at 15, Livermore decided to take a dip with a miniscule portion of the profits he had, and earned a profit of $3.12 by putting down $5 at a bucket shop. In a matter of weeks, Livermore's earnings at the bucket shops exceeded his earnings at Paine Webber.
He left the broker at 16 and started trading in Boston's bucket shops.
But Livermore always won ... and the bucket shops took notice. They kicked him out repeatedly. He put on a beard.
He would simply don disguises — a beard — to get under the radar.
Eventually he was permanently banned, though he carried home a small fortune — $10,000.
Livermore decided it was time to challenge his abilities in 1899. He went to New York and married a woman he had known for a few weeks.
In the same year he would meet his wife, Nettie Jordan. They would be married within a few weeks of meeting, and they would be separated within a few months of marriage.
He had lost everything by playing by the ticker's number, which lagged 30 to 40 minutes behind the real-time market numbers.
He had asked Nettie to pawn off some of the jewels he had gifted her to trade again, and she was incensed.
Defeated but confident, Livermore went back to basics. He started making money at St. Louis bucket shops.
That was before the owners recognized him as "Jesse Livermore." Since the shops no longer accepted him, he sent in someone to trade for him and dragged out $5,000 from the shops.
In 1901, Livermore made money almost effortlessly, before losing it all trading cotton.
Livermore had returned to Wall Street to a roaring bull market in 1901. Then 24, he would make $50,000 — and lose it trading cotton.
He would also continue to trade conservatively, too afraid of going too far.
"When I should have made $20,000, I made $2,000," he said. In the meantime, he would enjoy his life as an attractive, wealthy bachelor in the city.
At 28, Livermore had $100,000 to his name by 1906 — but he was losing confidence. So he went on vacation to Palm Beach, but not before he decided to short Union Pacific stock.
His conservatism combined with his inconsistent history of wins of the stock market made him question his long-term ability to trade stock. So he decided to take a break at Palm Beach — it turned out to be a turning point in his life.
Livermore had a "psychic surge" he'd never felt before and decided to short Union Pacific stock.
His friends all thought he was crazy, or had insider information. Union Pacific stock was going up the whole time.
He returned to the city, and then heard about San Francisco's earthquake — which caused Union Pacific's stock to go down. Suddenly Livermore had made $250,000 — though he rued his caution since the market continued to fall after he covered.
His friends all thought he was crazy or had insider information.
Livermore listened to a mentor and decided not to turn his position around — and later discovered shorting the stock cost him $40,000.
Not long after, Livermore tried to buy Union Pacific stock, seeing the proper conditions to buy in the numbers.
But an old friend, Ed Hutton, who had no investments in the company, went out of his way to call Livermore and warn him against the move. Hutton turned out to be completely wrong.
Livermore blamed himself for taking the tip.
Livermore earned the reputation of a hero in the crash of 1907. As the stock market started plunging, he went short on a hunch.
Livermore earned his largest sum yet: $1 million in a single day.
But seeing the market in crisis, Livermore decided to do the right and wise thing. He started buying all that he could carry (in part at the behest of JP Morgan). His buying led many other Wall Streeters to do the same — and the market started to recover.
Livermore also gained hero status. By following his lead, many of his peers had become rich.
He bought a $200,000 yacht, a rail car, and an apartment on the Upper West Side. He joined the most exclusive clubs and had a stream of mistresses.
In a year, he went from zero to $3 million and entered a new class of wealth.
But the more he bought, the higher the cost of maintenance. Soon, Livermore returned to the stock market.
In 1908 Livermore was betrayed by a "friend" — and paid millions for it.
Livermore had $5 million to his name and earned his moniker "boy plunger" — before losing it all trading cotton in the Chicago commodities market.
He had listened to Teddy Price, a famed cotton trader — and he couldn't explain why he had listened since he knew the position was wrong. While Price told Livermore to continue buying, Price himself sold, along with the rest of the growers.
Livermore was sunk.
He was bankrupt for a year before he made it all back. Then, at 40, he proposed to 22-year-old Dorothy of the Ziegfeld Follies.
Bankruptcy was inevitable in 1915. The stock he had bought in 1907 to ameliorate the market crash came back to cushion his fall during to succeeding years as the market went through a long bear market.
A year later, he made $5 million back riding the bull market.
Then, after a long and highly publicized divorce from Nettie Jordan (including a stunt where he hired a private investigator to steal back his car), he was finally married to Dorothy, a Ziegfeld Follies dancer.
Dorothy and Livermore would have their first son, Jesse Livermore II, in 1919. By 1922, the couple's second son, Paul, was on his way.
Livermore decided to buy an expensive property at Great Neck and left Dorothy with an empty check to furnish the house.
They were moneyed,high-society, and wanted nothing. It was a period of overwhelming happiness for the family.
Livermore's name also grew in the media, and people bought and sold based on his recommendations in the papers.
He established a formal trading operation — earning $15 million . Two years later, Livermore would move to a larger office with 60 staff members.
Edwin Lefevre contacted Livermore in order to write 'Reminiscence of a Stock Operator.' It was published in 1923.
At its publication, no one realized it was a thinly veiled disguise for Livermore's own life, with a character named Laurie Livingston repeating the words Livermore had sat down and said to Lefevre.
It would do surprisingly well and spawn several reprints.
In the same year, Livermore second son was born.
Meanwhile, his notoriety continued to grow on Wall Street. He made $10 million trading wheat and corn in 1925.
He would make $10 million trading wheat and corn in 1925 on the Chicago Board of Trade — battling the famed bullish commodities trader Arthur Cutten for the ability to manipulate the market.
In 1927, two burglars broke into the Livermore's home and held him and his wife at gunpoint.
Dorothy was surprisingly calm throughout the ordeal, talking the burglars into leaving some of their most valuable jewels behind. When they left, she persuaded the burglars to leave carefully and not to wake the children.
Despite the family's happiness however, things were beginning to change. Dorothy's drinking habits were getting out of hand.
Then Black Tuesday hit and the market crashed. Livermore made $100 million going short.
By chance, Livermore felt something was moving in the market. He decided to live out of his office making trades in the days leading up to October 29.
As the news began spreading about traders who had lost everything on Black Tuesday, Dorothy Livermore and her mother at home in Evermore began panicking. When Jesse Livermore returned, they were crying about how they were ruined — not realizing he had made $100 million going short.
By 1932, Dorothy's drinking habits, combined with Livermore's affairs and their lavish spending habits, strained the relationship.
Throughout their relationship, Livermore had kept mistresses from everywhere — including the Ziegfeld Follies, where Dorothy still had friends. She was humiliated.
At the same time, Dorothy's drinking habits had turned her from the life of the party into an undignified drunk.
Dorothy asked forquick divorce and received the modest settlement of $10 million. She took custody of the boys as well as the house. On the same day, she married a younger man — a former prohibition officer.
At 56, Livermore, no longer young nor truly wealthy, decided to spend the last of his money on vacation — where he met his third wife.
He met the American singer Harriet Metz in Vienna. Four times widowed by suicides, she had her own money from those deaths.
Livermore planned on using the vacation to recuperate and make a comeback from inevitable bankruptcy upon his return to New York. But he was also emotionally worn out.
Dorothy attempted to keep up the lavish lifestyle her ex-husband had given her, but didn't have the funds. She sold the Great Neck house. The sale of a home that had been part of the family for a decade hurt Livermore.
The house had come with butlers, maids, cooks, gardeners and more — and $10 million was not enough to keep it running. Dorothy had divorced her new husband. Livermore sank deeper into depression. The house has represented a decade of family and joy, and it was sold and torn down.
Jewels and an inscribed wedding ring that Livermore had given Dorothy were sold for a few dollars — Livermore felt humiliated.
The house and renovations had cost Livermore $3.5 million. Dorothy sold it all for $222,000.
A year later, Livermore was forced to declare a third bankruptcy.
It was Livermore's third time, but as before, he was confident he could make a return to the market.
He had friends and had done it before.
But that third and final era of debt in his 60s would be fatal. Though Livermore had famously returned to the stock market twice before, the creation of the SEC and loss of the motivation that had prompted his previous phoenix risings would lead to a dead end.
In 1935, Dorothy Livermore shot their son Jesse Livermore Jr. while in the middle of a drunken spat.
Jesse had always been a problem child, drinking like his mother and sleeping with her friends.
On Thanksgiving, Dorothy and her new husband had lunch with her two sons. After the meal Dorothy sat down and began drinking liberally.
Jesse Livermore Jr., upset over her deteriorating drinking habits, finished off the bottle. His mother said, "I'd rather see you dead than drinking that way," to which he replied, "you don't have the nerve to shoot me" and handed her a gun.
She was inebriated, and after a prolonged argument, the gun went off.
She was taken in for questioning, Jesse Jr. narrowly survived, and she was cleared of charges.
The situation added stress to Livermore's life.
Jesse Livermore began to realize after a series of family tragedies and the emergence of the SEC that he might not trade the same ever again.
His wife's fortune also supported him comfortably enough that he felt no urgency to trade.
In 1940, Livermore's book, "How to Trade in Stocks," was published, though it was never as popular as Lefevre's work.
“No man can always have adequate reasons for buying or selling stocks daily — or sufficient knowledge to make his play an intelligent play,” he said to Lefevre.
And in the same year, Livermore shot himself in the coatroom of the Sherry Netherland Hotel in New York.
According to Rubython, his wife's $7 million fortune had lulled him into a sense of comfort and killed the desperation to win he had in his youth.
He felt as if he was losing himself.
He left nearly no money to his children. Jesse Livermore Jr. later committed suicide.
What little he had allocated to their trust funds had devalued over the years. Jesse Livermore Jr. would also fall into the habits of his alcoholic mother and kill himself in 1975 after shooting his beloved dog while drunk and attempting to shoot a police officer.
As did Jesse Livermore Jr.'s son.
"There is nothing new in Wall Street. There can't be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again," Lefevre wrote.
Though his money didn't last, his wisdom stayed with generations of traders, and his mistakes became the encouragement and lessons for traders today.
"If a man didn't make mistakes he'd own the world in a month. But if he didn't profit by his mistakes he wouldn't own a blessed thing," Leferve wrote.
The text above was written by Lucinda Shen and published on the website BusinessInsider.com
The original link is http://www.businessinsider.com/the-life-of-jesse-livermore-2015-7
Interesting links:
http://www.jesselivermore.com/
http://www.businessinsider.com/wall-street-reading-list-2015-6?op=1
Labels:
Jesse Livermore,
retail investor,
role model,
stock market,
stock trader,
trader,
wizard
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