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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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    • Wow.  Yes.  Hi - hows America? I'll let Mk let me know when it happens. Also trade just HSI but keep telling myself I should also trade a variant on your style on fx. 
    • Howdy Doody!   I haven't been here in years. Dre gave me a nudge about your post otherwise I would never have Known... I'm keen to catch up will PM you and get in touch with Kiwi   Trading Hang Seng Futures. Mostly very short-term combined with index option swing trades.   With kind regards, MK
    • Gold Is Trapped In A Narrowing Price Band Lacking In Directional Bias XAUUSD Price Analysis – February 14 Gold did not have a strong directional inclination and traded in a limited exchanging band around the $ 1,575 level during the early European session on Friday. The blend of separating powers couldn’t give any new catalyst or support the valuable metal to build up a positive shift of the previous session to the tops in a week. Key Levels Resistance Levels: $ 1611, $ 1595, $ 1585 Support Levels: $ 1550, $ 1540, $ 1517 XAUUSD Long term Trend: Bullish The metal has printed lower highs and higher lows since it reached $ 1,611.49 level in early January. This took the form of a tapering price band or a declining triangle. Marvin Steinberg und seine Sicht auf den STO-Markt: https://coincierge.de/2020/marvin-steinberg-und-seine-sicht-auf-den-sto-markt/ Admitting past the upper limit may mean the resumption of the uptrend from November lows of about $ 1455.70 level and may lead to a move past the recent high of $ 1611.49 level. XAUUSD Short term Trend: Ranging The day after a slight decrease in price, gold came back to the resistance region of $1575 – $1578 levels. With the RSI indicating a potential move higher, we could see some expansion in force. However, gold requires to get through the barrier zone to affirm further advancement and besides, it additionally needs to break past the recent highs to keep up an upswing. Instrument: XAUUSD Order: Buy Entry price: $1,575 Stop: $ 1,563 Target: $1,580 Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.   Source: https://learn2.trade   
    • Ripple (XRP) Starts New Uptrend, Battles Next Resistance At $0.34 Key Resistance Levels: $0.30, $0.40, $0.45 Key Support Levels: $0.25, $0.20, $0.15 XRP/USD Long-term Trend: Bullish On February 11, Ripple slumped to the low of $0.26 and rebounded as the coin reached a new high of $0.32. Before this time, the bulls have been finding it difficult to break the resistance at $0.28. Analysts are of the view that a break above $0.28 will push XRP to a high of $0.31. Today the market has reached a high of $0.34 but has pulled back to the support of $0.32. The upward move has been temporarily put on hold because of the minor resistance at $0.34. Nonetheless, the bulls have to make efforts to break the current resistance. From the price action, if the bulls succeed in breaking the resistance at $0.34, XRP will rally above $0.40. This is because there will be little or no resistance between $0.34 and $0.40. Therefore, we shall lookout for the next price between $40 and $0.45. Daily Chart Indicators Reading: As Ripple appreciated to a high of $0.32, the Relative Strength Index period 14 has risen to level 80. This implies that Ripple is in the overbought region of the market. The implication is that once the coin is overbought, sellers will be generated in the region to push the coin downward. Buyers are not available in the region to push the coin upward. However, in exceptional cases price will linger in the overbought region before the downward move. Marvin Steinberg und seine Sicht auf den STO-Markt: https://coincierge.de/2020/marvin-steinberg-und-seine-sicht-auf-den-sto-markt/ XRP/USD Medium-term Trend: Bullish On the 4-hour chart, the upward move was as a result of a bounce on the trend line. The rally reached a high of $0.34 but the price found support above $0.32. Thereafter the bulls made two attempts at the resistance without a success. The coin is fluctuating below the resistance. 4-hour Chart Indicators Reading Ripple is trading below 80% range of the daily stochastic. This means that XRP is in bearish momentum. The coin is likely to fall. Meanwhile, 21-day SMA and 50-day SMA are sloping upward indicating that uptrend is ongoing General Outlook for Ripple (XRP) Ripple is currently fluctuating above $0.32 support but below the $0.34 resistance. The bulls have one more hurdle at $0.34 resistance to jump over. Ripple will be out of the downtrend zone if the bulls are successful above the resistance. There is also the possibility of a new uptrend as soon as the resistance at $0.34 is breached. Ripple (XRP) Trade Signal Instrument: XRPUSD Order: Buy Entry price: $0.33 Stop: $0.32 Target: $0.45 Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.   Source: https://learn2.trade   
    • I am keen - will pm an email ..   No Forex only ES and NQ for me  
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