Quotes
6 min read
Jesse Livermore Story
Jesse Livermore was born in 1877 and began his trading career at the tender age of 15. He quickly made a name for himself as a shrewd trader, profiting off stocks and commodities like wheat, cotton, and copper. After having success with his own investments, he became a professional stock market speculator and even founded his own investment firm in 1906.
Livermore made and lost several fortunes throughout his career, often taking huge risks to make a profit. His biggest success came after the Panic of 1907, when he bet that stocks on Wall Street would eventually recover from the crash – a move which earned him over $1 million in profits.
However, despite his successes, Livermore's luck eventually ran out. In the 1920s he made several unsuccessful investments which caused him to lose most of his fortune. He committed suicide in 1940, at the age of 63.
Livermore's story has become an inspiration for many aspiring traders and investors, providing a cautionary tale about the risks associated with trading on Wall Street.
Never miss a new post.
Sign up to get instant notifications when we publish a new post.
Jesse Livermore's life was unofficially documented in Edwin Lefevre's 1923 book Reminiscences of a Stock Operator, which focused on the philosophy and trading techniques of a stock trader by the name of “Larry Livingston”, which left nobody in doubt as to who it was really about.
The book became an instant hit and remains a go-to trading bible for many today. No doubt inspired by its success, Livermore himself released his own book 17 years later, How to Trade In Stocks, and noted his 21 Rules of Trading.
Jesse Livermore Quotes
Nothing new ever occurs in the business of speculating or investing in securities and commodities.
Jesse Livermore
Money cannot consistently be made trading every day or every week during the year.
Jesse Livermore
Don’t trust your own opinion and back your judgment until the action of the market itself confirms your opinion.
Jesse Livermore
Markets are never wrong – opinions often are.
Jesse Livermore
The real money made in speculating has been in commitments showing in profit right from the start.
Jesse Livermore
As long as a stock is acting right, and the market is right, do not be in a hurry to take profits.
Jesse Livermore
One should never permit speculative ventures to run into investments.
Jesse Livermore
The money lost by speculation alone is small compared with the gigantic sums lost by so-called investors who have let their investments ride.
Jesse Livermore
Never buy a stock because it has had a big decline from its previous high.
Jesse Livermore
Never sell a stock because it seems high-priced.
Jesse Livermore
I become a buyer as soon as a stock makes a new high on its movement after having had a normal reaction.
Jesse Livermore
Never average losses.
Jesse Livermore
The human side of every person is the greatest enemy of the average investor or speculator.
Jesse Livermore
Wishful thinking must be banished.
Jesse Livermore
Big movements take time to develop.
Jesse Livermore
It is not good to be too curious about all the reasons behind price movements.
Jesse Livermore
It is much easier to watch a few than many.
Jesse Livermore
If you cannot make money out of the leading active issues, you are not going to make money out of the stock market as a whole.
Jesse Livermore
The leaders of today may not be the leaders of two years from now.
Jesse Livermore
Do not become completely bearish or bullish on the whole market because one stock in some particular group has plainly reversed its course from the general trend.
Jesse Livermore
Few people ever make money on tips. Beware of inside information. If there was easy money lying around, no one would be forcing it into your pocket.
Jesse Livermore
Jesse Livermore FAQ
Jesse Livermore made millions of dollars in his lifetime. His biggest success was in 1907 when he bet that stocks on Wall Street would recover from the Panic of 1907 – a move that earned him over $1 million in profits. He also founded his own investment firm in 1906 and had many other successful investments throughout his career.
Jesse Livermore began his trading journey as a day trader but soon enough he became a swing trader focused more long term.
Jesse Livermore was born in 1877. He started his trading career at the age of 15 and quickly made a name for himself as a shrewd trader.
Jesse Livermore was largely a self-taught trader and investor. He avidly studied market movements and had an innate understanding of how to read the markets. However, he did not have any formal education in trading or investing. He learned most of his knowledge through his own research and experience in the markets.
Jesse Livermore famously wrote the classic book “How To Trade In Stocks,” Where he describes his method for finding the best stocks, positioning, and general market analysis.
It is also rumored that “Reminiscences of a Stock Operator,” by Edwin Lefevre is a fictional biography written about Jesse Livermore.
Pyramiding involves buying stocks as they increase in price. Start with a partial position, and if the price increases buy more stock. To offset an increase in average cost, buy a smaller piece each time you add on to the initial purchase.
To build a 20% position, start with a 10% position, Add 6% as the price increases, and then add the remaining 4% as the stock goes higher.
In his book “How To Trade In Stocks,” Livermore goes into detail about waiting for the right moment to buy stocks as they emerge through a “Pivotal Point,” and begin making new highs.
Ultimate Trading Guide
Everything you need to start trading smarter and take ownership of your trading results.
Enroll for Free Today
