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The World's 10 Most Famous Traders of All Time

(Iknow DAN BLYSTONE HE IS ONE OF THE GOOD GUYS AROUND.. ) https://www.investopedia.com/articles/active-trading/041515/worlds-10-most-famous-traders-all-time.asp

Updated Mar 12, 2019

There are several famous former traders who moved on to different careers, such as John Key (who served as the 38th Prime Minister of New Zealand) and Jimmy Wales (founder of Wikipedia). However, this list is made up of traders famous for being traders. The lives of the world's most famous traders are colored by both triumph and tragedy, with some exploits achieving mythological status within the industry. The list begins with legendary traders of history and progresses to those of the present day.

 

1. Jesse Livermore: Jesse Lauriston Livermore (1877–1940) was an American trader famous for both colossal gains and losses in the market. He successfully shorted the 1929 market crash, building his fortune to $100 million. However, by 1934 he had lost his money and tragically took his own life in 1940.

 

2. William Delbert Gann: WD Gann (1878–1955) was a trader who used market forecasting methods based on geometry, astrology, and ancient mathematics. His mysterious technical tools include Gann angles and the Square of 9. As well as trading, Gann wrote a number of books and courses.

 

3. George Soros: Hungarian-born George Soros (born 1930) is the chairman of Soros Fund Management, one of the most successful firms in the history of the hedge fund industry. He earned the moniker “The Man Who Broke the Bank of England” in 1992 after his short sale of $10 billion worth of pounds, yielding a tidy $1 billion profit. 

 

4. Jim Rogers: James Rogers, Jr. (born 1942) is the Chairman of Rogers Holdings. He co-founded the Quantum Fund along with George Soros in the early 1970s, which gained a staggering 4200% over 10 years. Rogers is renowned for his correct bullish call on commodities in the 1990's and also for his books detailing his adventurous world travels.

 

5. Richard Dennis: Richard J. Dennis (born 1949) made his mark in the trading world as a highly successful Chicago-based commodities trader. He reportedly acquired a $200 million fortune over ten years from his speculating. Along with partner William Eckhardt, Dennis was co-creator of the mythical Turtle Trading experiment. 

 

6. Paul Tudor Jones: Paul Tudor Jones II (born 1954) is the founder of Tudor Investment Corporation, one of the world's leading hedge funds. Tudor Jones gained notoriety after making around $100 million from shorting stocks during the 1987 market crash.

 

7. John Paulson: John Paulson (born 1955), of the hedge fund Paulson & Co., rose to the top of the financial world after making billions of dollars in 2007 by using credit default swaps to effectively sell short the US subprime mortgage lending market.

 

8. Steven Cohen: Steven Cohen (born 1956) founded SAC Capital Advisors, a leading hedge fund focused primarily on trading equities. In 2013, SAC was charged by the Securities and Exchange Commission with failing to prevent insider trading and later agreed to pay a $1.2 billion fine.

 

9. David Tepper: David Tepper (born 1957) is the founder of the wildly successful hedge fund Appaloosa Management. Tepper, a specialist in distressed debt investing, has made several appearances on CNBC where his statements are closely watched by traders.

 

10. Nick Leeson: Nicholas Leeson (born 1967) is the rogue trader who famously caused the collapse of Barings Bank. Leeson served four years in a Singapore jail but later bounced back to become CEO of Irish football club Galway United.

 

The Bottom Line

The dramatic and varied life stories of the world's most famous traders have made compelling material for books and movies. Reminiscences of a Stock Operator, a fictionalized portrayal of Jesse Livermore's life, is widely viewed as a timeless classic and one of the most important books ever written about trading. Rogue Trader (1999), starring Ewan McGregor, is based on the story of Nick Leeson and the collapse of Barings Bank. (For related reading, see "The Most Famous Forex Traders Ever.")

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https://en.wikipedia.org/wiki/Jesse_Lauriston_Livermore

 

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learn from the best

https://en.wikipedia.org/wiki/Jesse_Lauriston_Livermore

Livermore was born in Shrewsbury, Massachusetts to a poverty-stricken family and moved to Acton, Massachusetts, as a child.[4] Livermore learned to read and write at the age of 3 1/2.[5] At the age of 14, his father pulled him out of school to help with the farm; however, with his mother's blessing, Livermore ran away from home.[5] He then began his career by posting stock quotes at the Paine Webber stockbrokerage in Boston, earning $5 per week.[5]

Career

In 1892, at the age of 15, he bet $5 on Chicago, Burlington and Quincy Railroad at a bucket shop, a type of establishment that took leveraged bets on stock prices but did not buy or sell the stock.[1] He earned $3.12 on the $5 bet.[5]

Livermore was soon earning more trading at the bucket shops than he did at Paine Webber. At the age of 16, he quit his job and began trading full-time.[5] He brought $1,000 home to his mother, who disapproved of his "gambling"; he countered that he was not gambling, but "speculating".[6]

Eventually, he was barred from his local bucket shops because of his consistent winning and would bet in the shops using disguises. He then went to Wall Street with his $10,000 in savings.[5]

While trading on Wall Street, he went bust as the ticker tape was not updated fast enough to make current trading decisions. He then moved to St. Louis, where he made bets at bucket shops.[5]

His first big win came in 1901 at the age of 24 when he bought stock in Northern Pacific Railway. He turned $10,000 into $500,000.[5]

In 1906, he vacationed in Palm Beach, Florida at the club of Edward R. Bradley.[5] While on vacation, at the direction of scalawag Thomas W. Lawson, he took a massive short position in Union Pacific Railroad the day before the 1906 San Francisco earthquake, leading to a $250,000 profit.[7] However, his friend, Edward Francis Hutton, incorrectly convinced Livermore not to close his position, and he wound up losing $40,000.[5]

In the Panic of 1907, Livermore's huge short positions made him $1 million in a single day.[5] However, his mentor, J. P. Morgan, who had bailed out the entire New York Stock Exchange during the crash, requested him to refrain from further short selling. Livermore agreed and instead, profited from the rebound, boosting his net worth to $3 million.[5]

He bought a $200,000 yacht, a rail car, and an apartment on the Upper West Side. He joined exclusive clubs and had mistresses.[5]

In 1908, he listened to Teddy Price, who told him to buy cotton, while Price secretly sold. He went bankrupt but was able to recover all of his losses.[5]

In 1915, he filed bankruptcy again.[8]

Following the end of World War I, Livermore secretly cornered the market in cotton. It was only interception by President Woodrow Wilson, prompted by a call from the United States Secretary of Agriculture, who asked him to the White House for a discussion that stopped his move. He agreed to sell back the cotton at break-even, thus preventing a troublesome rise in the price of cotton. When asked why he had cornered the cotton market, Livermore replied, "To see if I could, Mr. President."[9]

In 1924-1925, he engaged in market manipulation, making $10 million trading wheat and corn in a battle with Arthur W. Cutten[5] and engineering a short squeeze on the stock of Piggly Wiggly.[6]

In early 1929, he amassed huge short positions, using more than 100 stockbrokers to hide what he was doing. By the spring, he was down over $6 million on paper. However, upon the Wall Street Crash of 1929, he netted approximately $100 million.[5] Following a series of newspaper articles declaring him the "Great Bear of Wall Street", he was blamed for the crash by the public and received death threats, leading him to hire an armed bodyguard.[6]

His second divorce in 1932, the non-fatal shooting of his son by his wife in 1935, and a lawsuit from his Russian mistress led to a decline in his mental health, while the creation of the U.S. Securities and Exchange Commission in 1934 imposed new rules that affected his trading. Although it is unknown exactly how it happened,[9] he eventually lost his fortune and filed bankruptcy for the third time in 1934, listing assets of $84,000 and debts of $2.5 million.[6][5] He was suspended as a member of the Chicago Board of Trade on March 7, 1934.[9]

In 1937, he paid off his $800,000 tax bill.[10]

In 1939, he opened a financial advisory business, selling a technical analysis system.[6]

Personal life

One of Livermore's favorite books was Extraordinary Popular Delusions and the Madness of Crowds, by Charles Mackay, first published in 1841. That was also a favorite book of Bernard Baruch, a stock trader and close friend of Livermore.[4]

He enjoyed fishing and, in 1937, he caught a 436 pound swordfish.[11]

Marriages

Livermore was married 3 times and had 2 children. He married his first wife, Netit (Nettie) Jordan, of Indianapolis, at the age of 23 in October 1900. They had only known each other a few weeks before they got married.[5] Less than a year later, he went broke after some bad trades; for a new stake, he asked her to pawn the substantial collection of jewelry he had bought her, but she refused, permanently damaging their relationship.[5] They separated soon thereafter and finally divorced in October 1917.[9]

On December 2, 1918, at the age of 40, Livermore married 22-year old Dorothea (Dorothy) Fox Wendt, a 23-year-old former Ziegfeld girl in Ziegfeld Follies.[9] Livermore had affairs with several of the dancers.[5] The couple had two sons: Jesse Livermore II, born in 1919 and Paul, born in 1922.[5] He then bought an expensive house in Great Neck and let his wife spend as much as she wanted on the furnishings.[5] In 1927, he and his wife were robbed at gunpoint in their home.[5] The relationship became strained by Dorothy's drinking habits, Livermore's affairs with other Zigfield girls, and their lavish spending.[5] In 1931, Dorothy Livermore filed for divorce and took up temporary residence in Reno, Nevada, with her new lover, James Walter Longcope. On September 16, 1932, the divorce was granted and she immediately married her boyfriend. She retained custody of their two sons and received a $10 million settlement.[5] Dorothy sold the house in Great Neck, on which Livermore spent $3.5 million, for $222,000. The house was then torn down, depressing Livermore.[5]

On March 28, 1933, 56-year old Livermore married 38-year-old singer and socialite, Harriet Metz Noble, in Geneva, Illinois. They had met in 1931 in Vienna, where Metz Noble was performing and Livermore was in the audience on vacation. Metz Noble was from a prominent Omaha family that had made a fortune in breweries. Livermore was Metz Noble's fifth husband; at least 2 of Metz's previous husbands had committed suicide, including Warren Noble, who hanged himself after the Wall Street Crash of 1929.[12][5]

Publications

In late 1939, Livermore's son, Jesse Jr., suggested to his father that he write a book about trading. The book, How To Trade In Stocks, was published by Duell, Sloan and Pearce in March 1940. The book did not sell well as World War II was underway and the general interest in the stock market was low. His investment methods were controversial at the time, and the book received mixed reviews upon publication.[9]

Suicide

On November 28, 1940, just after 5:30PM, Livermore fatally shot himself with an Automatic Colt Pistol in the cloakroom of the The Sherry-Netherland hotel in Manhattan, a place where he usually had cocktails. Police found a suicide note of 8 small handwritten pages in Livermore's personal, leather bound notebook.[7][13] The note was addressed to Livermore's wife, Harriet (whom Livermore nicknamed "Nina"), and it read, "My dear Nina: Can't help it. Things have been bad with me. I am tired of fighting. Can't carry on any longer. This is the only way out. I am unworthy of your love. I am a failure. I am truly sorry, but this is the only way out for me. Love Laurie".[9]

His son, Jesse Livermore Jr., committed suicide in 1975. His grandson also killed himse

Learn from the best

Livermore was born in Shrewsbury, Massachusetts to a poverty-stricken family and moved to Acton, Massachusetts, as a child.[4] Livermore learned to read and write at the age of 3 1/2.[5] At the age of 14, his father pulled him out of school to help with the farm; however, with his mother's blessing, Livermore ran away from home.[5] He then began his career by posting stock quotes at the Paine Webber stockbrokerage in Boston, earning $5 per week.[5]

Career

In 1892, at the age of 15, he bet $5 on Chicago, Burlington and Quincy Railroad at a bucket shop, a type of establishment that took leveraged bets on stock prices but did not buy or sell the stock.[1] He earned $3.12 on the $5 bet.[5]

Livermore was soon earning more trading at the bucket shops than he did at Paine Webber. At the age of 16, he quit his job and began trading full-time.[5] He brought $1,000 home to his mother, who disapproved of his "gambling"; he countered that he was not gambling, but "speculating".[6]

Eventually, he was barred from his local bucket shops because of his consistent winning and would bet in the shops using disguises. He then went to Wall Street with his $10,000 in savings.[5]

While trading on Wall Street, he went bust as the ticker tape was not updated fast enough to make current trading decisions. He then moved to St. Louis, where he made bets at bucket shops.[5]

His first big win came in 1901 at the age of 24 when he bought stock in Northern Pacific Railway. He turned $10,000 into $500,000.[5]

In 1906, he vacationed in Palm Beach, Florida at the club of Edward R. Bradley.[5] While on vacation, at the direction of scalawag Thomas W. Lawson, he took a massive short position in Union Pacific Railroad the day before the 1906 San Francisco earthquake, leading to a $250,000 profit.[7] However, his friend, Edward Francis Hutton, incorrectly convinced Livermore not to close his position, and he wound up losing $40,000.[5]

In the Panic of 1907, Livermore's huge short positions made him $1 million in a single day.[5] However, his mentor, J. P. Morgan, who had bailed out the entire New York Stock Exchange during the crash, requested him to refrain from further short selling. Livermore agreed and instead, profited from the rebound, boosting his net worth to $3 million.[5]

He bought a $200,000 yacht, a rail car, and an apartment on the Upper West Side. He joined exclusive clubs and had mistresses.[5]

In 1908, he listened to Teddy Price, who told him to buy cotton, while Price secretly sold. He went bankrupt but was able to recover all of his losses.[5]

In 1915, he filed bankruptcy again.[8]

Following the end of World War I, Livermore secretly cornered the market in cotton. It was only interception by President Woodrow Wilson, prompted by a call from the United States Secretary of Agriculture, who asked him to the White House for a discussion that stopped his move. He agreed to sell back the cotton at break-even, thus preventing a troublesome rise in the price of cotton. When asked why he had cornered the cotton market, Livermore replied, "To see if I could, Mr. President."[9]

In 1924-1925, he engaged in market manipulation, making $10 million trading wheat and corn in a battle with Arthur W. Cutten[5] and engineering a short squeeze on the stock of Piggly Wiggly.[6]

In early 1929, he amassed huge short positions, using more than 100 stockbrokers to hide what he was doing. By the spring, he was down over $6 million on paper. However, upon the Wall Street Crash of 1929, he netted approximately $100 million.[5] Following a series of newspaper articles declaring him the "Great Bear of Wall Street", he was blamed for the crash by the public and received death threats, leading him to hire an armed bodyguard.[6]

His second divorce in 1932, the non-fatal shooting of his son by his wife in 1935, and a lawsuit from his Russian mistress led to a decline in his mental health, while the creation of the U.S. Securities and Exchange Commission in 1934 imposed new rules that affected his trading. Although it is unknown exactly how it happened,[9] he eventually lost his fortune and filed bankruptcy for the third time in 1934, listing assets of $84,000 and debts of $2.5 million.[6][5] He was suspended as a member of the Chicago Board of Trade on March 7, 1934.[9]

In 1937, he paid off his $800,000 tax bill.[10]

In 1939, he opened a financial advisory business, selling a technical analysis system.[6]

Personal life

One of Livermore's favorite books was Extraordinary Popular Delusions and the Madness of Crowds, by Charles Mackay, first published in 1841. That was also a favorite book of Bernard Baruch, a stock trader and close friend of Livermore.[4]

He enjoyed fishing and, in 1937, he caught a 436 pound swordfish.[11]

Marriages

Livermore was married 3 times and had 2 children. He married his first wife, Netit (Nettie) Jordan, of Indianapolis, at the age of 23 in October 1900. They had only known each other a few weeks before they got married.[5] Less than a year later, he went broke after some bad trades; for a new stake, he asked her to pawn the substantial collection of jewelry he had bought her, but she refused, permanently damaging their relationship.[5] They separated soon thereafter and finally divorced in October 1917.[9]

On December 2, 1918, at the age of 40, Livermore married 22-year old Dorothea (Dorothy) Fox Wendt, a 23-year-old former Ziegfeld girl in Ziegfeld Follies.[9] Livermore had affairs with several of the dancers.[5] The couple had two sons: Jesse Livermore II, born in 1919 and Paul, born in 1922.[5] He then bought an expensive house in Great Neck and let his wife spend as much as she wanted on the furnishings.[5] In 1927, he and his wife were robbed at gunpoint in their home.[5] The relationship became strained by Dorothy's drinking habits, Livermore's affairs with other Zigfield girls, and their lavish spending.[5] In 1931, Dorothy Livermore filed for divorce and took up temporary residence in Reno, Nevada, with her new lover, James Walter Longcope. On September 16, 1932, the divorce was granted and she immediately married her boyfriend. She retained custody of their two sons and received a $10 million settlement.[5] Dorothy sold the house in Great Neck, on which Livermore spent $3.5 million, for $222,000. The house was then torn down, depressing Livermore.[5]

On March 28, 1933, 56-year old Livermore married 38-year-old singer and socialite, Harriet Metz Noble, in Geneva, Illinois. They had met in 1931 in Vienna, where Metz Noble was performing and Livermore was in the audience on vacation. Metz Noble was from a prominent Omaha family that had made a fortune in breweries. Livermore was Metz Noble's fifth husband; at least 2 of Metz's previous husbands had committed suicide, including Warren Noble, who hanged himself after the Wall Street Crash of 1929.[12][5]

Publications

In late 1939, Livermore's son, Jesse Jr., suggested to his father that he write a book about trading. The book, How To Trade In Stocks, was published by Duell, Sloan and Pearce in March 1940. The book did not sell well as World War II was underway and the general interest in the stock market was low. His investment methods were controversial at the time, and the book received mixed reviews upon publication.[9]

Suicide

On November 28, 1940, just after 5:30PM, Livermore fatally shot himself with an Automatic Colt Pistol in the cloakroom of the The Sherry-Netherland hotel in Manhattan, a place where he usually had cocktails. Police found a suicide note of 8 small handwritten pages in Livermore's personal, leather bound notebook.[7][13] The note was addressed to Livermore's wife, Harriet (whom Livermore nicknamed "Nina"), and it read, "My dear Nina: Can't help it. Things have been bad with me. I am tired of fighting. Can't carry on any longer. This is the only way out. I am unworthy of your love. I am a failure. I am truly sorry, but this is the only way out for me. Love Laurie".[9]

His son, Jesse Livermore Jr., committed suicide in 1975. His grandson also killed himse

 

 

Jesse Lauriston Livermore (July 26, 1877 – November 28, 1940) was an American stock trader.[1] He is considered a pioneer of day trading[2] and was the basis for the main character of Reminiscences of a Stock Operator, a best-selling book by Edwin Lefèvre. At one time, he was one of the richest people in the world; however, at the time of his suicide, he had liabilities greater than his assets.[3]

In a time when accurate financial statements were rarely published, getting current stock quotes required a large operation, and market manipulation was rampant, Livermore used what is now known as technical analysis as the basis for his trades. His principles, including the effects of emotion on trading, continue to be studied.

Some of Livermore's trades, such as taking short positions before the 1906 San Francisco earthquake and just before the Wall Street Crash of 1929, are legendary and have led to his being regarded as the greatest trader who ever lived.

 

Livermore was born in Shrewsbury, Massachusetts to a poverty-stricken family and moved to Acton, Massachusetts, as a child.[4] Livermore learned to read and write at the age of 3 1/2.[5] At the age of 14, his father pulled him out of school to help with the farm; however, with his mother's blessing, Livermore ran away from home.[5] He then began his career by posting stock quotes at the Paine Webber stockbrokerage in Boston, earning $5 per week.[5]

Livermore was born in Shrewsbury, Massachusetts to a poverty-stricken family and moved to Acton, Massachusetts, as a child.[4] Livermore learned to read and write at the age of 3 1/2.[5] At the age of 14, his father pulled him out of school to help with the farm; however, with his mother's blessing, Livermore ran away from home.[5] He then began his career by posting stock quotes at the Paine Webber stockbrokerage in Boston, earning $5 per week.[5]

Career

In 1892, at the age of 15, he bet $5 on Chicago, Burlington and Quincy Railroad at a bucket shop, a type of establishment that took leveraged bets on stock prices but did not buy or sell the stock.[1] He earned $3.12 on the $5 bet.[5]

Livermore was soon earning more trading at the bucket shops than he did at Paine Webber. At the age of 16, he quit his job and began trading full-time.[5] He brought $1,000 home to his mother, who disapproved of his "gambling"; he countered that he was not gambling, but "speculating".[6]

Eventually, he was barred from his local bucket shops because of his consistent winning and would bet in the shops using disguises. He then went to Wall Street with his $10,000 in savings.[5]

While trading on Wall Street, he went bust as the ticker tape was not updated fast enough to make current trading decisions. He then moved to St. Louis, where he made bets at bucket shops.[5]

His first big win came in 1901 at the age of 24 when he bought stock in Northern Pacific Railway. He turned $10,000 into $500,000.[5]

In 1906, he vacationed in Palm Beach, Florida at the club of Edward R. Bradley.[5] While on vacation, at the direction of scalawag Thomas W. Lawson, he took a massive short position in Union Pacific Railroad the day before the 1906 San Francisco earthquake, leading to a $250,000 profit.[7] However, his friend, Edward Francis Hutton, incorrectly convinced Livermore not to close his position, and he wound up losing $40,000.[5]

In the Panic of 1907, Livermore's huge short positions made him $1 million in a single day.[5] However, his mentor, J. P. Morgan, who had bailed out the entire New York Stock Exchange during the crash, requested him to refrain from further short selling. Livermore agreed and instead, profited from the rebound, boosting his net worth to $3 million.[5]

He bought a $200,000 yacht, a rail car, and an apartment on the Upper West Side. He joined exclusive clubs and had mistresses.[5]

In 1908, he listened to Teddy Price, who told him to buy cotton, while Price secretly sold. He went bankrupt but was able to recover all of his losses.[5]

In 1915, he filed bankruptcy again.[8]

Following the end of World War I, Livermore secretly cornered the market in cotton. It was only interception by President Woodrow Wilson, prompted by a call from the United States Secretary of Agriculture, who asked him to the White House for a discussion that stopped his move. He agreed to sell back the cotton at break-even, thus preventing a troublesome rise in the price of cotton. When asked why he had cornered the cotton market, Livermore replied, "To see if I could, Mr. President."[9]

In 1924-1925, he engaged in market manipulation, making $10 million trading wheat and corn in a battle with Arthur W. Cutten[5] and engineering a short squeeze on the stock of Piggly Wiggly.[6]

In early 1929, he amassed huge short positions, using more than 100 stockbrokers to hide what he was doing. By the spring, he was down over $6 million on paper. However, upon the Wall Street Crash of 1929, he netted approximately $100 million.[5] Following a series of newspaper articles declaring him the "Great Bear of Wall Street", he was blamed for the crash by the public and received death threats, leading him to hire an armed bodyguard.[6]

His second divorce in 1932, the non-fatal shooting of his son by his wife in 1935, and a lawsuit from his Russian mistress led to a decline in his mental health, while the creation of the U.S. Securities and Exchange Commission in 1934 imposed new rules that affected his trading. Although it is unknown exactly how it happened,[9] he eventually lost his fortune and filed bankruptcy for the third time in 1934, listing assets of $84,000 and debts of $2.5 million.[6][5] He was suspended as a member of the Chicago Board of Trade on March 7, 1934.[9]

In 1937, he paid off his $800,000 tax bill.[10]

In 1939, he opened a financial advisory business, selling a technical analysis system.[6]

Personal life

One of Livermore's favorite books was Extraordinary Popular Delusions and the Madness of Crowds, by Charles Mackay, first published in 1841. That was also a favorite book of Bernard Baruch, a stock trader and close friend of Livermore.[4]

He enjoyed fishing and, in 1937, he caught a 436 pound swordfish.[11]

Marriages

Livermore was married 3 times and had 2 children. He married his first wife, Netit (Nettie) Jordan, of Indianapolis, at the age of 23 in October 1900. They had only known each other a few weeks before they got married.[5] Less than a year later, he went broke after some bad trades; for a new stake, he asked her to pawn the substantial collection of jewelry he had bought her, but she refused, permanently damaging their relationship.[5] They separated soon thereafter and finally divorced in October 1917.[9]

On December 2, 1918, at the age of 40, Livermore married 22-year old Dorothea (Dorothy) Fox Wendt, a 23-year-old former Ziegfeld girl in Ziegfeld Follies.[9] Livermore had affairs with several of the dancers.[5] The couple had two sons: Jesse Livermore II, born in 1919 and Paul, born in 1922.[5] He then bought an expensive house in Great Neck and let his wife spend as much as she wanted on the furnishings.[5] In 1927, he and his wife were robbed at gunpoint in their home.[5] The relationship became strained by Dorothy's drinking habits, Livermore's affairs with other Zigfield girls, and their lavish spending.[5] In 1931, Dorothy Livermore filed for divorce and took up temporary residence in Reno, Nevada, with her new lover, James Walter Longcope. On September 16, 1932, the divorce was granted and she immediately married her boyfriend. She retained custody of their two sons and received a $10 million settlement.[5] Dorothy sold the house in Great Neck, on which Livermore spent $3.5 million, for $222,000. The house was then torn down, depressing Livermore.[5]

On March 28, 1933, 56-year old Livermore married 38-year-old singer and socialite, Harriet Metz Noble, in Geneva, Illinois. They had met in 1931 in Vienna, where Metz Noble was performing and Livermore was in the audience on vacation. Metz Noble was from a prominent Omaha family that had made a fortune in breweries. Livermore was Metz Noble's fifth husband; at least 2 of Metz's previous husbands had committed suicide, including Warren Noble, who hanged himself after the Wall Street Crash of 1929.[12][5]

Publications

In late 1939, Livermore's son, Jesse Jr., suggested to his father that he write a book about trading. The book, How To Trade In Stocks, was published by Duell, Sloan and Pearce in March 1940. The book did not sell well as World War II was underway and the general interest in the stock market was low. His investment methods were controversial at the time, and the book received mixed reviews upon publication.[9]

Suicide

On November 28, 1940, just after 5:30PM, Livermore fatally shot himself with an Automatic Colt Pistol in the cloakroom of the The Sherry-Netherland hotel in Manhattan, a place where he usually had cocktails. Police found a suicide note of 8 small handwritten pages in Livermore's personal, leather bound notebook.[7][13] The note was addressed to Livermore's wife, Harriet (whom Livermore nicknamed "Nina"), and it read, "My dear Nina: Can't help it. Things have been bad with me. I am tired of fighting. Can't carry on any longer. This is the only way out. I am unworthy of your love. I am a failure. I am truly sorry, but this is the only way out for me. Love Laurie".[9]

His son, Jesse Livermore Jr., committed suicide in 1975. His grandson also killed himse

Learn from the best

Livermore was born in Shrewsbury, Massachusetts to a poverty-stricken family and moved to Acton, Massachusetts, as a child.[4] Livermore learned to read and write at the age of 3 1/2.[5] At the age of 14, his father pulled him out of school to help with the farm; however, with his mother's blessing, Livermore ran away from home.[5] He then began his career by posting stock quotes at the Paine Webber stockbrokerage in Boston, earning $5 per week.[5]

Career

In 1892, at the age of 15, he bet $5 on Chicago, Burlington and Quincy Railroad at a bucket shop, a type of establishment that took leveraged bets on stock prices but did not buy or sell the stock.[1] He earned $3.12 on the $5 bet.[5]

Livermore was soon earning more trading at the bucket shops than he did at Paine Webber. At the age of 16, he quit his job and began trading full-time.[5] He brought $1,000 home to his mother, who disapproved of his "gambling"; he countered that he was not gambling, but "speculating".[6]

Eventually, he was barred from his local bucket shops because of his consistent winning and would bet in the shops using disguises. He then went to Wall Street with his $10,000 in savings.[5]

While trading on Wall Street, he went bust as the ticker tape was not updated fast enough to make current trading decisions. He then moved to St. Louis, where he made bets at bucket shops.[5]

His first big win came in 1901 at the age of 24 when he bought stock in Northern Pacific Railway. He turned $10,000 into $500,000.[5]

In 1906, he vacationed in Palm Beach, Florida at the club of Edward R. Bradley.[5] While on vacation, at the direction of scalawag Thomas W. Lawson, he took a massive short position in Union Pacific Railroad the day before the 1906 San Francisco earthquake, leading to a $250,000 profit.[7] However, his friend, Edward Francis Hutton, incorrectly convinced Livermore not to close his position, and he wound up losing $40,000.[5]

In the Panic of 1907, Livermore's huge short positions made him $1 million in a single day.[5] However, his mentor, J. P. Morgan, who had bailed out the entire New York Stock Exchange during the crash, requested him to refrain from further short selling. Livermore agreed and instead, profited from the rebound, boosting his net worth to $3 million.[5]

He bought a $200,000 yacht, a rail car, and an apartment on the Upper West Side. He joined exclusive clubs and had mistresses.[5]

In 1908, he listened to Teddy Price, who told him to buy cotton, while Price secretly sold. He went bankrupt but was able to recover all of his losses.[5]

In 1915, he filed bankruptcy again.[8]

Following the end of World War I, Livermore secretly cornered the market in cotton. It was only interception by President Woodrow Wilson, prompted by a call from the United States Secretary of Agriculture, who asked him to the White House for a discussion that stopped his move. He agreed to sell back the cotton at break-even, thus preventing a troublesome rise in the price of cotton. When asked why he had cornered the cotton market, Livermore replied, "To see if I could, Mr. President."[9]

In 1924-1925, he engaged in market manipulation, making $10 million trading wheat and corn in a battle with Arthur W. Cutten[5] and engineering a short squeeze on the stock of Piggly Wiggly.[6]

In early 1929, he amassed huge short positions, using more than 100 stockbrokers to hide what he was doing. By the spring, he was down over $6 million on paper. However, upon the Wall Street Crash of 1929, he netted approximately $100 million.[5] Following a series of newspaper articles declaring him the "Great Bear of Wall Street", he was blamed for the crash by the public and received death threats, leading him to hire an armed bodyguard.[6]

His second divorce in 1932, the non-fatal shooting of his son by his wife in 1935, and a lawsuit from his Russian mistress led to a decline in his mental health, while the creation of the U.S. Securities and Exchange Commission in 1934 imposed new rules that affected his trading. Although it is unknown exactly how it happened,[9] he eventually lost his fortune and filed bankruptcy for the third time in 1934, listing assets of $84,000 and debts of $2.5 million.[6][5] He was suspended as a member of the Chicago Board of Trade on March 7, 1934.[9]

In 1937, he paid off his $800,000 tax bill.[10]

In 1939, he opened a financial advisory business, selling a technical analysis system.[6]

Personal life

One of Livermore's favorite books was Extraordinary Popular Delusions and the Madness of Crowds, by Charles Mackay, first published in 1841. That was also a favorite book of Bernard Baruch, a stock trader and close friend of Livermore.[4]

He enjoyed fishing and, in 1937, he caught a 436 pound swordfish.[11]

Marriages

Livermore was married 3 times and had 2 children. He married his first wife, Netit (Nettie) Jordan, of Indianapolis, at the age of 23 in October 1900. They had only known each other a few weeks before they got married.[5] Less than a year later, he went broke after some bad trades; for a new stake, he asked her to pawn the substantial collection of jewelry he had bought her, but she refused, permanently damaging their relationship.[5] They separated soon thereafter and finally divorced in October 1917.[9]

On December 2, 1918, at the age of 40, Livermore married 22-year old Dorothea (Dorothy) Fox Wendt, a 23-year-old former Ziegfeld girl in Ziegfeld Follies.[9] Livermore had affairs with several of the dancers.[5] The couple had two sons: Jesse Livermore II, born in 1919 and Paul, born in 1922.[5] He then bought an expensive house in Great Neck and let his wife spend as much as she wanted on the furnishings.[5] In 1927, he and his wife were robbed at gunpoint in their home.[5] The relationship became strained by Dorothy's drinking habits, Livermore's affairs with other Zigfield girls, and their lavish spending.[5] In 1931, Dorothy Livermore filed for divorce and took up temporary residence in Reno, Nevada, with her new lover, James Walter Longcope. On September 16, 1932, the divorce was granted and she immediately married her boyfriend. She retained custody of their two sons and received a $10 million settlement.[5] Dorothy sold the house in Great Neck, on which Livermore spent $3.5 million, for $222,000. The house was then torn down, depressing Livermore.[5]

On March 28, 1933, 56-year old Livermore married 38-year-old singer and socialite, Harriet Metz Noble, in Geneva, Illinois. They had met in 1931 in Vienna, where Metz Noble was performing and Livermore was in the audience on vacation. Metz Noble was from a prominent Omaha family that had made a fortune in breweries. Livermore was Metz Noble's fifth husband; at least 2 of Metz's previous husbands had committed suicide, including Warren Noble, who hanged himself after the Wall Street Crash of 1929.[12][5]

Publications

In late 1939, Livermore's son, Jesse Jr., suggested to his father that he write a book about trading. The book, How To Trade In Stocks, was published by Duell, Sloan and Pearce in March 1940. The book did not sell well as World War II was underway and the general interest in the stock market was low. His investment methods were controversial at the time, and the book received mixed reviews upon publication.[9]

Suicide

On November 28, 1940, just after 5:30PM, Livermore fatally shot himself with an Automatic Colt Pistol in the cloakroom of the The Sherry-Netherland hotel in Manhattan, a place where he usually had cocktails. Police found a suicide note of 8 small handwritten pages in Livermore's personal, leather bound notebook.[7][13] The note was addressed to Livermore's wife, Harriet (whom Livermore nicknamed "Nina"), and it read, "My dear Nina: Can't help it. Things have been bad with me. I am tired of fighting. Can't carry on any longer. This is the only way out. I am unworthy of your love. I am a failure. I am truly sorry, but this is the only way out for me. Love Laurie".[9]

His son, Jesse Livermore Jr., committed suicide in 1975. His grandson also killed himse

 

 

Jesse Lauriston Livermore (July 26, 1877 – November 28, 1940) was an American stock trader.[1] He is considered a pioneer of day trading[2] and was the basis for the main character of Reminiscences of a Stock Operator, a best-selling book by Edwin Lefèvre. At one time, he was one of the richest people in the world; however, at the time of his suicide, he had liabilities greater than his assets.[3]

In a time when accurate financial statements were rarely published, getting current stock quotes required a large operation, and market manipulation was rampant, Livermore used what is now known as technical analysis as the basis for his trades. His principles, including the effects of emotion on trading, continue to be studied.

Some of Livermore's trades, such as taking short positions before the 1906 San Francisco earthquake and just before the Wall Street Crash of 1929, are legendary and have led to his being regarded as the greatest trader who ever lived.

 

Livermore was born in Shrewsbury, Massachusetts to a poverty-stricken family and moved to Acton, Massachusetts, as a child.[4] Livermore learned to read and write at the age of 3 1/2.[5] At the age of 14, his father pulled him out of school to help with the farm; however, with his mother's blessing, Livermore ran away from home.[5] He then began his career by posting stock quotes at the Paine Webber stockbrokerage in Boston, earning $5 per week.[5]

Career

In 1892, at the age of 15, he bet $5 on Chicago, Burlington and Quincy Railroad at a bucket shop, a type of establishment that took leveraged bets on stock prices but did not buy or sell the stock.[1] He earned $3.12 on the $5 bet.[5]

Livermore was soon earning more trading at the bucket shops than he did at Paine Webber. At the age of 16, he quit his job and began trading full-time.[5] He brought $1,000 home to his mother, who disapproved of his "gambling"; he countered that he was not gambling, but "speculating".[6]

Eventually, he was barred from his local bucket shops because of his consistent winning and would bet in the shops using disguises. He then went to Wall Street with his $10,000 in savings.[5]

While trading on Wall Street, he went bust as the ticker tape was not updated fast enough to make current trading decisions. He then moved to St. Louis, where he made bets at bucket shops.[5]

His first big win came in 1901 at the age of 24 when he bought stock in Northern Pacific Railway. He turned $10,000 into $500,000.[5]

In 1906, he vacationed in Palm Beach, Florida at the club of Edward R. Bradley.[5] While on vacation, at the direction of scalawag Thomas W. Lawson, he took a massive short position in Union Pacific Railroad the day before the 1906 San Francisco earthquake, leading to a $250,000 profit.[7] However, his friend, Edward Francis Hutton, incorrectly convinced Livermore not to close his position, and he wound up losing $40,000.[5]

In the Panic of 1907, Livermore's huge short positions made him $1 million in a single day.[5] However, his mentor, J. P. Morgan, who had bailed out the entire New York Stock Exchange during the crash, requested him to refrain from further short selling. Livermore agreed and instead, profited from the rebound, boosting his net worth to $3 million.[5]

He bought a $200,000 yacht, a rail car, and an apartment on the Upper West Side. He joined exclusive clubs and had mistresses.[5]

In 1908, he listened to Teddy Price, who told him to buy cotton, while Price secretly sold. He went bankrupt but was able to recover all of his losses.[5]

In 1915, he filed bankruptcy again.[8]

Following the end of World War I, Livermore secretly cornered the market in cotton. It was only interception by President Woodrow Wilson, prompted by a call from the United States Secretary of Agriculture, who asked him to the White House for a discussion that stopped his move. He agreed to sell back the cotton at break-even, thus preventing a troublesome rise in the price of cotton. When asked why he had cornered the cotton market, Livermore replied, "To see if I could, Mr. President."[9]

In 1924-1925, he engaged in market manipulation, making $10 million trading wheat and corn in a battle with Arthur W. Cutten[5] and engineering a short squeeze on the stock of Piggly Wiggly.[6]

In early 1929, he amassed huge short positions, using more than 100 stockbrokers to hide what he was doing. By the spring, he was down over $6 million on paper. However, upon the Wall Street Crash of 1929, he netted approximately $100 million.[5] Following a series of newspaper articles declaring him the "Great Bear of Wall Street", he was blamed for the crash by the public and received death threats, leading him to hire an armed bodyguard.[6]

His second divorce in 1932, the non-fatal shooting of his son by his wife in 1935, and a lawsuit from his Russian mistress led to a decline in his mental health, while the creation of the U.S. Securities and Exchange Commission in 1934 imposed new rules that affected his trading. Although it is unknown exactly how it happened,[9] he eventually lost his fortune and filed bankruptcy for the third time in 1934, listing assets of $84,000 and debts of $2.5 million.[6][5] He was suspended as a member of the Chicago Board of Trade on March 7, 1934.[9]

In 1937, he paid off his $800,000 tax bill.[10]

In 1939, he opened a financial advisory business, selling a technical analysis system.[6]

Personal life

One of Livermore's favorite books was Extraordinary Popular Delusions and the Madness of Crowds, by Charles Mackay, first published in 1841. That was also a favorite book of Bernard Baruch, a stock trader and close friend of Livermore.[4]

He enjoyed fishing and, in 1937, he caught a 436 pound swordfish.[11]

Marriages

Livermore was married 3 times and had 2 children. He married his first wife, Netit (Nettie) Jordan, of Indianapolis, at the age of 23 in October 1900. They had only known each other a few weeks before they got married.[5] Less than a year later, he went broke after some bad trades; for a new stake, he asked her to pawn the substantial collection of jewelry he had bought her, but she refused, permanently damaging their relationship.[5] They separated soon thereafter and finally divorced in October 1917.[9]

On December 2, 1918, at the age of 40, Livermore married 22-year old Dorothea (Dorothy) Fox Wendt, a 23-year-old former Ziegfeld girl in Ziegfeld Follies.[9] Livermore had affairs with several of the dancers.[5] The couple had two sons: Jesse Livermore II, born in 1919 and Paul, born in 1922.[5] He then bought an expensive house in Great Neck and let his wife spend as much as she wanted on the furnishings.[5] In 1927, he and his wife were robbed at gunpoint in their home.[5] The relationship became strained by Dorothy's drinking habits, Livermore's affairs with other Zigfield girls, and their lavish spending.[5] In 1931, Dorothy Livermore filed for divorce and took up temporary residence in Reno, Nevada, with her new lover, James Walter Longcope. On September 16, 1932, the divorce was granted and she immediately married her boyfriend. She retained custody of their two sons and received a $10 million settlement.[5] Dorothy sold the house in Great Neck, on which Livermore spent $3.5 million, for $222,000. The house was then torn down, depressing Livermore.[5]

On March 28, 1933, 56-year old Livermore married 38-year-old singer and socialite, Harriet Metz Noble, in Geneva, Illinois. They had met in 1931 in Vienna, where Metz Noble was performing and Livermore was in the audience on vacation. Metz Noble was from a prominent Omaha family that had made a fortune in breweries. Livermore was Metz Noble's fifth husband; at least 2 of Metz's previous husbands had committed suicide, including Warren Noble, who hanged himself after the Wall Street Crash of 1929.[12][5]

Publications

In late 1939, Livermore's son, Jesse Jr., suggested to his father that he write a book about trading. The book, How To Trade In Stocks, was published by Duell, Sloan and Pearce in March 1940. The book did not sell well as World War II was underway and the general interest in the stock market was low. His investment methods were controversial at the time, and the book received mixed reviews upon publication.[9]

Suicide

On November 28, 1940, just after 5:30PM, Livermore fatally shot himself with an Automatic Colt Pistol in the cloakroom of the The Sherry-Netherland hotel in Manhattan, a place where he usually had cocktails. Police found a suicide note of 8 small handwritten pages in Livermore's personal, leather bound notebook.[7][13] The note was addressed to Livermore's wife, Harriet (whom Livermore nicknamed "Nina"), and it read, "My dear Nina: Can't help it. Things have been bad with me. I am tired of fighting. Can't carry on any longer. This is the only way out. I am unworthy of your love. I am a failure. I am truly sorry, but this is the only way out for me. Love Laurie".[9]

His son, Jesse Livermore Jr., committed suicide in 1975. His grandson also killed himse

Livermore was born in Shrewsbury, Massachusetts to a poverty-stricken family and moved to Acton, Massachusetts, as a child.[4] Livermore learned to read and write at the age of 3 1/2.[5] At the age of 14, his father pulled him out of school to help with the farm; however, with his mother's blessing, Livermore ran away from home.[5] He then began his career by posting stock quotes at the Paine Webber stockbrokerage in Boston, earning $5 per week.[5]

Career

In 1892, at the age of 15, he bet $5 on Chicago, Burlington and Quincy Railroad at a bucket shop, a type of establishment that took leveraged bets on stock prices but did not buy or sell the stock.[1] He earned $3.12 on the $5 bet.[5]

Livermore was soon earning more trading at the bucket shops than he did at Paine Webber. At the age of 16, he quit his job and began trading full-time.[5] He brought $1,000 home to his mother, who disapproved of his "gambling"; he countered that he was not gambling, but "speculating".[6]

Eventually, he was barred from his local bucket shops because of his consistent winning and would bet in the shops using disguises. He then went to Wall Street with his $10,000 in savings.[5]

While trading on Wall Street, he went bust as the ticker tape was not updated fast enough to make current trading decisions. He then moved to St. Louis, where he made bets at bucket shops.[5]

His first big win came in 1901 at the age of 24 when he bought stock in Northern Pacific Railway. He turned $10,000 into $500,000.[5]

In 1906, he vacationed in Palm Beach, Florida at the club of Edward R. Bradley.[5] While on vacation, at the direction of scalawag Thomas W. Lawson, he took a massive short position in Union Pacific Railroad the day before the 1906 San Francisco earthquake, leading to a $250,000 profit.[7] However, his friend, Edward Francis Hutton, incorrectly convinced Livermore not to close his position, and he wound up losing $40,000.[5]

In the Panic of 1907, Livermore's huge short positions made him $1 million in a single day.[5] However, his mentor, J. P. Morgan, who had bailed out the entire New York Stock Exchange during the crash, requested him to refrain from further short selling. Livermore agreed and instead, profited from the rebound, boosting his net worth to $3 million.[5]

He bought a $200,000 yacht, a rail car, and an apartment on the Upper West Side. He joined exclusive clubs and had mistresses.[5]

In 1908, he listened to Teddy Price, who told him to buy cotton, while Price secretly sold. He went bankrupt but was able to recover all of his losses.[5]

In 1915, he filed bankruptcy again.[8]

Following the end of World War I, Livermore secretly cornered the market in cotton. It was only interception by President Woodrow Wilson, prompted by a call from the United States Secretary of Agriculture, who asked him to the White House for a discussion that stopped his move. He agreed to sell back the cotton at break-even, thus preventing a troublesome rise in the price of cotton. When asked why he had cornered the cotton market, Livermore replied, "To see if I could, Mr. President."[9]

In 1924-1925, he engaged in market manipulation, making $10 million trading wheat and corn in a battle with Arthur W. Cutten[5] and engineering a short squeeze on the stock of Piggly Wiggly.[6]

In early 1929, he amassed huge short positions, using more than 100 stockbrokers to hide what he was doing. By the spring, he was down over $6 million on paper. However, upon the Wall Street Crash of 1929, he netted approximately $100 million.[5] Following a series of newspaper articles declaring him the "Great Bear of Wall Street", he was blamed for the crash by the public and received death threats, leading him to hire an armed bodyguard.[6]

His second divorce in 1932, the non-fatal shooting of his son by his wife in 1935, and a lawsuit from his Russian mistress led to a decline in his mental health, while the creation of the U.S. Securities and Exchange Commission in 1934 imposed new rules that affected his trading. Although it is unknown exactly how it happened,[9] he eventually lost his fortune and filed bankruptcy for the third time in 1934, listing assets of $84,000 and debts of $2.5 million.[6][5] He was suspended as a member of the Chicago Board of Trade on March 7, 1934.[9]

In 1937, he paid off his $800,000 tax bill.[10]

In 1939, he opened a financial advisory business, selling a technical analysis system.[6]

Personal life

One of Livermore's favorite books was Extraordinary Popular Delusions and the Madness of Crowds, by Charles Mackay, first published in 1841. That was also a favorite book of Bernard Baruch, a stock trader and close friend of Livermore.[4]

He enjoyed fishing and, in 1937, he caught a 436 pound swordfish.[11]

Marriages

Livermore was married 3 times and had 2 children. He married his first wife, Netit (Nettie) Jordan, of Indianapolis, at the age of 23 in October 1900. They had only known each other a few weeks before they got married.[5] Less than a year later, he went broke after some bad trades; for a new stake, he asked her to pawn the substantial collection of jewelry he had bought her, but she refused, permanently damaging their relationship.[5] They separated soon thereafter and finally divorced in October 1917.[9]

On December 2, 1918, at the age of 40, Livermore married 22-year old Dorothea (Dorothy) Fox Wendt, a 23-year-old former Ziegfeld girl in Ziegfeld Follies.[9] Livermore had affairs with several of the dancers.[5] The couple had two sons: Jesse Livermore II, born in 1919 and Paul, born in 1922.[5] He then bought an expensive house in Great Neck and let his wife spend as much as she wanted on the furnishings.[5] In 1927, he and his wife were robbed at gunpoint in their home.[5] The relationship became strained by Dorothy's drinking habits, Livermore's affairs with other Zigfield girls, and their lavish spending.[5] In 1931, Dorothy Livermore filed for divorce and took up temporary residence in Reno, Nevada, with her new lover, James Walter Longcope. On September 16, 1932, the divorce was granted and she immediately married her boyfriend. She retained custody of their two sons and received a $10 million settlement.[5] Dorothy sold the house in Great Neck, on which Livermore spent $3.5 million, for $222,000. The house was then torn down, depressing Livermore.[5]

On March 28, 1933, 56-year old Livermore married 38-year-old singer and socialite, Harriet Metz Noble, in Geneva, Illinois. They had met in 1931 in Vienna, where Metz Noble was performing and Livermore was in the audience on vacation. Metz Noble was from a prominent Omaha family that had made a fortune in breweries. Livermore was Metz Noble's fifth husband; at least 2 of Metz's previous husbands had committed suicide, including Warren Noble, who hanged himself after the Wall Street Crash of 1929.[12][5]

Publications

In late 1939, Livermore's son, Jesse Jr., suggested to his father that he write a book about trading. The book, How To Trade In Stocks, was published by Duell, Sloan and Pearce in March 1940. The book did not sell well as World War II was underway and the general interest in the stock market was low. His investment methods were controversial at the time, and the book received mixed reviews upon publication.[9]

Suicide

On November 28, 1940, just after 5:30PM, Livermore fatally shot himself with an Automatic Colt Pistol in the cloakroom of the The Sherry-Netherland hotel in Manhattan, a place where he usually had cocktails. Police found a suicide note of 8 small handwritten pages in Livermore's personal, leather bound notebook.[7][13] The note was addressed to Livermore's wife, Harriet (whom Livermore nicknamed "Nina"), and it read, "My dear Nina: Can't help it. Things have been bad with me. I am tired of fighting. Can't carry on any longer. This is the only way out. I am unworthy of your love. I am a failure. I am truly sorry, but this is the only way out for me. Love Laurie".[9]

His son, Jesse Livermore Jr., committed suicide in 1975. His grandson also killed himse

Learn from the best

Livermore was born in Shrewsbury, Massachusetts to a poverty-stricken family and moved to Acton, Massachusetts, as a child.[4] Livermore learned to read and write at the age of 3 1/2.[5] At the age of 14, his father pulled him out of school to help with the farm; however, with his mother's blessing, Livermore ran away from home.[5] He then began his career by posting stock quotes at the Paine Webber stockbrokerage in Boston, earning $5 per week.[5]

Career

In 1892, at the age of 15, he bet $5 on Chicago, Burlington and Quincy Railroad at a bucket shop, a type of establishment that took leveraged bets on stock prices but did not buy or sell the stock.[1] He earned $3.12 on the $5 bet.[5]

Livermore was soon earning more trading at the bucket shops than he did at Paine Webber. At the age of 16, he quit his job and began trading full-time.[5] He brought $1,000 home to his mother, who disapproved of his "gambling"; he countered that he was not gambling, but "speculating".[6]

Eventually, he was barred from his local bucket shops because of his consistent winning and would bet in the shops using disguises. He then went to Wall Street with his $10,000 in savings.[5]

While trading on Wall Street, he went bust as the ticker tape was not updated fast enough to make current trading decisions. He then moved to St. Louis, where he made bets at bucket shops.[5]

His first big win came in 1901 at the age of 24 when he bought stock in Northern Pacific Railway. He turned $10,000 into $500,000.[5]

In 1906, he vacationed in Palm Beach, Florida at the club of Edward R. Bradley.[5] While on vacation, at the direction of scalawag Thomas W. Lawson, he took a massive short position in Union Pacific Railroad the day before the 1906 San Francisco earthquake, leading to a $250,000 profit.[7] However, his friend, Edward Francis Hutton, incorrectly convinced Livermore not to close his position, and he wound up losing $40,000.[5]

In the Panic of 1907, Livermore's huge short positions made him $1 million in a single day.[5] However, his mentor, J. P. Morgan, who had bailed out the entire New York Stock Exchange during the crash, requested him to refrain from further short selling. Livermore agreed and instead, profited from the rebound, boosting his net worth to $3 million.[5]

He bought a $200,000 yacht, a rail car, and an apartment on the Upper West Side. He joined exclusive clubs and had mistresses.[5]

In 1908, he listened to Teddy Price, who told him to buy cotton, while Price secretly sold. He went bankrupt but was able to recover all of his losses.[5]

In 1915, he filed bankruptcy again.[8]

Following the end of World War I, Livermore secretly cornered the market in cotton. It was only interception by President Woodrow Wilson, prompted by a call from the United States Secretary of Agriculture, who asked him to the White House for a discussion that stopped his move. He agreed to sell back the cotton at break-even, thus preventing a troublesome rise in the price of cotton. When asked why he had cornered the cotton market, Livermore replied, "To see if I could, Mr. President."[9]

In 1924-1925, he engaged in market manipulation, making $10 million trading wheat and corn in a battle with Arthur W. Cutten[5] and engineering a short squeeze on the stock of Piggly Wiggly.[6]

In early 1929, he amassed huge short positions, using more than 100 stockbrokers to hide what he was doing. By the spring, he was down over $6 million on paper. However, upon the Wall Street Crash of 1929, he netted approximately $100 million.[5] Following a series of newspaper articles declaring him the "Great Bear of Wall Street", he was blamed for the crash by the public and received death threats, leading him to hire an armed bodyguard.[6]

His second divorce in 1932, the non-fatal shooting of his son by his wife in 1935, and a lawsuit from his Russian mistress led to a decline in his mental health, while the creation of the U.S. Securities and Exchange Commission in 1934 imposed new rules that affected his trading. Although it is unknown exactly how it happened,[9] he eventually lost his fortune and filed bankruptcy for the third time in 1934, listing assets of $84,000 and debts of $2.5 million.[6][5] He was suspended as a member of the Chicago Board of Trade on March 7, 1934.[9]

In 1937, he paid off his $800,000 tax bill.[10]

In 1939, he opened a financial advisory business, selling a technical analysis system.[6]

Personal life

One of Livermore's favorite books was Extraordinary Popular Delusions and the Madness of Crowds, by Charles Mackay, first published in 1841. That was also a favorite book of Bernard Baruch, a stock trader and close friend of Livermore.[4]

He enjoyed fishing and, in 1937, he caught a 436 pound swordfish.[11]

Marriages

Livermore was married 3 times and had 2 children. He married his first wife, Netit (Nettie) Jordan, of Indianapolis, at the age of 23 in October 1900. They had only known each other a few weeks before they got married.[5] Less than a year later, he went broke after some bad trades; for a new stake, he asked her to pawn the substantial collection of jewelry he had bought her, but she refused, permanently damaging their relationship.[5] They separated soon thereafter and finally divorced in October 1917.[9]

On December 2, 1918, at the age of 40, Livermore married 22-year old Dorothea (Dorothy) Fox Wendt, a 23-year-old former Ziegfeld girl in Ziegfeld Follies.[9] Livermore had affairs with several of the dancers.[5] The couple had two sons: Jesse Livermore II, born in 1919 and Paul, born in 1922.[5] He then bought an expensive house in Great Neck and let his wife spend as much as she wanted on the furnishings.[5] In 1927, he and his wife were robbed at gunpoint in their home.[5] The relationship became strained by Dorothy's drinking habits, Livermore's affairs with other Zigfield girls, and their lavish spending.[5] In 1931, Dorothy Livermore filed for divorce and took up temporary residence in Reno, Nevada, with her new lover, James Walter Longcope. On September 16, 1932, the divorce was granted and she immediately married her boyfriend. She retained custody of their two sons and received a $10 million settlement.[5] Dorothy sold the house in Great Neck, on which Livermore spent $3.5 million, for $222,000. The house was then torn down, depressing Livermore.[5]

On March 28, 1933, 56-year old Livermore married 38-year-old singer and socialite, Harriet Metz Noble, in Geneva, Illinois. They had met in 1931 in Vienna, where Metz Noble was performing and Livermore was in the audience on vacation. Metz Noble was from a prominent Omaha family that had made a fortune in breweries. Livermore was Metz Noble's fifth husband; at least 2 of Metz's previous husbands had committed suicide, including Warren Noble, who hanged himself after the Wall Street Crash of 1929.[12][5]

Publications

In late 1939, Livermore's son, Jesse Jr., suggested to his father that he write a book about trading. The book, How To Trade In Stocks, was published by Duell, Sloan and Pearce in March 1940. The book did not sell well as World War II was underway and the general interest in the stock market was low. His investment methods were controversial at the time, and the book received mixed reviews upon publication.[9]

Suicide

On November 28, 1940, just after 5:30PM, Livermore fatally shot himself with an Automatic Colt Pistol in the cloakroom of the The Sherry-Netherland hotel in Manhattan, a place where he usually had cocktails. Police found a suicide note of 8 small handwritten pages in Livermore's personal, leather bound notebook.[7][13] The note was addressed to Livermore's wife, Harriet (whom Livermore nicknamed "Nina"), and it read, "My dear Nina: Can't help it. Things have been bad with me. I am tired of fighting. Can't carry on any longer. This is the only way out. I am unworthy of your love. I am a failure. I am truly sorry, but this is the only way out for me. Love Laurie".[9]

His son, Jesse Livermore Jr., committed suicide in 1975. His grandson also killed himse

 

 

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Edited by mitsubishi

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    • Date : 7th April 2020. FX Update – April 7 – A wee bit more Risk. Trading Leveraged Products is risky AUDUSD & GBPUSD, H1 The commodity currencies outperformed some more, as did many developing-world currencies amid a backdrop of rising stock and commodity markets. Equity markets are amid day two of a rally pinned on tentative signs that the global coronavirus infection and mortality rates might be near to peaking. The Fed’s decision to finance new “payroll protection” loans has also bolstered the US economic response plans. AUDUSD has rallied 1.7% in printing a one-week high at 0.6192, while AUDJPY has rallied by 1.4% in making a high at 67.38. The Aussie dollar is now up 3% from last Friday’s closing levels. The Kiwi and Canadian dollars are also up. USDCAD has dropped to an eight-day low at 1.4011. The Dollar, Yen and, to a lesser degree, the Swiss Franc, have continued to underperform most other currencies. The narrow trade-weighted USDIndex has declined by 0.6% in pegging a five-day low at 100.79, while EURUSD concurrently lifted by 0.7% in making a five-day high, at 1.0876. The pair is up by just over 1% from its Monday lows. The combination of risk-on positioning in markets and the Fed’s aggressive dollar liquidity provisions, which forms part of a crisis-era level of monetary accommodation, have been bearish tonic for the Dollar. Dollar underperformance saw USDJPY dip back under 109.00, though the Yen itself trader softer against most other currencies as its safe-haven premium is whittled down. Sterling dipped on the news that PM Johnson was moved to ICU and had received oxygen, although Downing Street stated that he was still conscience and that Foreign Secretary Dominic Raab will lead the UK government as long as Johnson is incapacitated. From lows of 1.2162 earlier, a weaker USD, has Cable rally over 170 pips to 1.2335. Next resistance is R2 and the upper Bollinger band around 1.2375, 1.2400 and then R3 at 1.2420. Support sits at 1.2300 and the Daily Pivot Point, a 50.0 Fibonacci level and 200hr moving average at 1.2250. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HotForex Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Stuart Cowell Head Market Analyst HotForex Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • CloseOption Broker is currently trying in completing the project binary options (Financial Betting Platform) with a special platform and due to the simplicity Platform and having good performance they will attract and absorb soon many clients and partners. This Broker accepts CryptoCurrencies, Paypal, PerfectMoney & Credit Cards Deposits! Minimum Deposit: 5$ CloseOption - 2.400$ Weekly Tournament - 1st Place win 750$ (first 10 places win money) Read CloseOption Broker Review - https://1binaryoptions.eu/review/close-option/
    • PocketOption Broker Announces: Entering payments through stable cryptocurrency (stablecoin) PAX and Tether Add funds to your Pocket Option trading account, and withdraw from your account using two popular "stablecoins": PAX or Tether. The funds are automatically credited after receiving the required number of confirmations in the blockchain. Please note that we do not accept payments through Smart Contracts. About stable cryptocurrencies (stablecoins) Both Paxos Standard (PAX) and Tether (USDT) combine the stability of the US Dollar with the efficiency of blockchain technology. Like any other cryptocurrency, funds can be moved instantly, anywhere in the world, at any time of any day. Unlike other cryptocurrencies, PAX and Tether are stable and covered 1: 1 by the Dollar, which includes traditional currency and cash equivalents, etc. Thus, the funds are carefully protected, audited and regulated. Pocket Option Broker USA Customers Welcome | Binary Options No Deposit Bonus! - https://binaryoptionsfree.eu/review/pocket-option/
    • Date : 6th April 2020. Events to Look Out For Next WeekIt’s a holiday shortened week ahead as most markets will be closed on Friday for the Easter holidays, however the novel coronavirus remains the focal point. The rapid upswing in market volatility seen in March should continue in April as governments, central banks, households and businesses further adapt to the ongoing pandemic and uncertain outlook. Hence this will be another week of increased attention to the data which will incorporate more of the impacts of the global shutdowns and will help start to quantify the severity of the economic impacts amid still very uncertain times.Monday – 06 April 2020   OPEC Meeting (USOIL, GMT 19:00) – Azerbaijan’s energy ministry said that a meeting of the OPEC+ group of oil producers is planned for April 6 and will be held as a video conference. Tuesday – 07 April 2020 Interest Rate Decision and Monetary Policy Statement (AUD, GMT 04:30) – Positioning in 30-day interbank cash rate futures this week implied a 60% chance for the RBA to cut its benchmark interest rate to zero from 0.25% at the upcoming policy meeting, which is up from odds of 31% for such a move that were being discounted just over a week ago. However in the March RBA minutes, they provided colour around the 25bp rate cut and the adoption of QE but they made clear that there is no appetite for negative interest rates. JOLTS Job Openings (USD, GMT 14:00) – JOLTS define Job Openings as all positions that have not been filled on the last business day of the month. February’s JOLTS job openings is expected to fall slightly at 6.476M, following the 6.963M in January. Ivey PMI (CAD, GMT 15:00) – A survey of purchasing managers, the Index provides an overview of the state of business conditions in the country. API weekly Crude Oil Stocks (USOIL, GMT 20:30) Wednesday – 08 April 2020   EIA weekly Crude Oil Stocks Change (USOIL, GMT 14:30) FOMC Minutes (USD, GMT 18:00) – The FOMC Minutes report provides the FOMC Members’ opinions regarding the US economic outlook and any views regarding future rate hikes. In the last FOMC statement, on March 15, the FOMC slashed rates 100 bps to 0% – 0.25% in an emergency move, getting ahead of the curve. Thursday – 09 April 2020   ECB Monetary Policy Meeting Accounts (EUR, GMT 11:30) – The ECB Monetary Policy Meeting Accounts provide information with regards to the policymakers’ rationale behind their decisions. At the same time, in the last meeting, ECB announced a EUR 750 bln pandemic emergency program (PEPP) and introduced new QE measures worth EUR 120 bln and additional loan programs, while they left rates unchanged at the March policy meeting. Producer Price Index (USD, GMT 12:30) – The Headline PPI is expected to decline to a -0.2% March PPI headline with a 0.2% increase in the core index. The continued energy price pull-back through the month likely weighed on the headline. Employment Change (CAD, GMT 12:30) – Employment change is seen spiking to 10.0k in the number of employed people in March, compared to the spike at 30.3k in February. The unemployment rate is expected to remain at 5.6%. Michigan Consumer Sentiment Index (USD, GMT 14:00) – The preliminary April Michigan sentiment reading is forecast at 95, up from the 89.1 in March. Friday – 10 April 2020   Consumer Price Index (CNY, GMT 01:30) – The March’s Chinese CPI is expected to remain unchanged on a monthly and yearly basis. Consumer Price Index and Core (USD, GMT 12:30) – The headline CPI has been estimated to a -0.2% March headline CPI drop with a 0.2% core price increase, following respective February readings of 0.1% and 0.2%. As with PPI, the headline inflation figures will be depressed well into 2020 from the OPEC price war, though the core figures will face divergent pressures that are partly downward due to diminished demand with COVID-19, but upward due to supply shortages that may prompt some erratic swings. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.Click HERE to access the full HotForex Economic calendar.Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!Click HERE to READ more Market news. Andria Pichidi Market Analyst HotForex Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Bitcoin (BTC) Drops To $6,828 After A Sudden Price Spike To $7,283 Key Resistance Zones: $10,000, $11,000, $12,000 Key Support Zones: $7, 000, $6, 000, $5,000 BTC/USD Long-term Trend: Bearish On March 2, there was a price spike as Bitcoin reached a high of $7,283.50. The bulls could not sustain the upward move as Bitcoin fell to $6,828. The bears are defending intensively the $7,000 overhead resistance. BTC is now fluctuating above $6,800. The bears will further sink BTC if the bulls fail to move up. Bitcoin may fall to the low of the breakout level of $6,400. However, if this level also cracks, the market will further fall to the next support. BTC/USD – Daily Chart Daily Chart Indicators Reading: Bitcoin is above 60% range of the daily stochastic. This is given the recent price spike which tested the resistance line of the descending channel. However, if price breaks and closes above the resistance line, there will be a change in the trend. BTC will resume an uptrend. BTC/USD Medium-term Trend: Bullish Yesterday, BTC was making an upward move to retest the $7,000 resistance. The price has earlier moved up to $6,800 before the commencement of price spike. The market moved above the resistance level but could not sustain above $7,000 because of the selling pressure. BTC/USD 4-hour Chart Indicators Reading The Relative Strength Index has risen to level 66. It indicates that BTC is in the uptrend zone and above the centerline 50. The 21-day and 50-day SMAs are sloping upward indicating the upward move. General Outlook for Bitcoin (BTC) Yesterday, Bitcoin rose to $7,283 in a price spike. The bulls could not sustain the upward move because of the presence of sellers at the price level. BTC dropped to a low of $6,800. The price has since been fluctuating above that level. Instrument: BTC/USD Order: Sell Entry price: $6,784.00 Stop: $6,850.00 Target: $6,584.00   Source: https://learn2.trade 
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