This
is the man who inspired "the trader's bible" -
Jesse Lauriston Livermore. He is one of the greatest traders that few
people know about. A remarkable trader, one of the pioneers of the financial markets. The
reason to become a legend is that he has predicted perfectly not just a
financial crisis, but also the fact that he traded at a time when the
information and the set of financial instruments and tools were nothing
compared to today's.
Livermore first became famous after the Panic of 1907 when he sold the market short as it crashed. He noticed conditions where a lack of capital existed to buy stock. Accordingly, he predicted that there would be a sharp drop in prices when many speculators were simultaneously forced to sell by margin calls and a lack of credit. With the lack of capital, there would be no buyers in sight to absorb the sold stock, further driving down prices. After the crash the result is more than impressive - $ 3 million in one day, equivalent to about 70 million today's money.
Jesse Livermore was not just another lucky man because he has not just retained his wealth but has repeatedly increased it after the next major collapse in 1929. While much of the American population is losing their jobs and living in poverty, trading in the financial markets during the Wall Street crash makes Livermore one of the few people in the world at that time to own over 100 million dollars after short-selling profits.
Jesse Livermore is often called "the first real trader in the world" or “the original wolf of Wall Street”.
He was highly successful, but also lost his fortune several times. He was always the first to admit when he made a mistake, and when he lost money it came down to two potential culprits:
1. The rules for trading were not fully formulated (not the case for most of his losses).
2. The rules were not followed.
To this day Jesse Livermore remains the most successful stock and commodities trader in the history of the stock market.
Livermore first became famous after the Panic of 1907 when he sold the market short as it crashed. He noticed conditions where a lack of capital existed to buy stock. Accordingly, he predicted that there would be a sharp drop in prices when many speculators were simultaneously forced to sell by margin calls and a lack of credit. With the lack of capital, there would be no buyers in sight to absorb the sold stock, further driving down prices. After the crash the result is more than impressive - $ 3 million in one day, equivalent to about 70 million today's money.
Jesse Livermore was not just another lucky man because he has not just retained his wealth but has repeatedly increased it after the next major collapse in 1929. While much of the American population is losing their jobs and living in poverty, trading in the financial markets during the Wall Street crash makes Livermore one of the few people in the world at that time to own over 100 million dollars after short-selling profits.
Jesse Livermore is often called "the first real trader in the world" or “the original wolf of Wall Street”.
He was highly successful, but also lost his fortune several times. He was always the first to admit when he made a mistake, and when he lost money it came down to two potential culprits:
1. The rules for trading were not fully formulated (not the case for most of his losses).
2. The rules were not followed.
To this day Jesse Livermore remains the most successful stock and commodities trader in the history of the stock market.
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