Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Sign in to follow this  
mitsubishi

learn from the best

Recommended Posts

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.")

Share this post


Link to post
Share on other sites

learn from the best

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

 

  •  

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

 

 

Dont forget to like and subscribe

 

 

Edited by mitsubishi

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Topics

  • Posts

    • Yeah agree, trading with Hotforex helped me to realise how important is a trading plan. 
    • $WTRH Waitr Holdings stock strong close with a breakout watch above 3.24, volume 40% above normal , see https://stockconsultant.com/?WTRH
    • $KOPN Kopin stock strong trend with a breakout watch above 1.5 , see https://stockconsultant.com/?KOPN
    • https://nationalfile.com/dershowitz-defends-ghislaine-maxwells-character-as-he-sues-epstein-victim-for-accusing-him-of-rape/ ANOTHER DISGUSTING DECREPID PEDOPHILE FUCKING JEW CUNT NOT HUMAN just sayin'
    • Dictionary Thesaurus Medical Dictionary Legal Dictionary Financial Dictionary Acronyms Idioms Encyclopedia Wikipedia Encyclopedia Tools A A A A Language:     Mobile Apps: apple android For surfers: Free toolbar & extensions Word of the Day Bookmark Help For webmasters: Free content Linking Lookup box Close Correct all you're your grammar errors instantly. Try it now. useless Also found in: Thesaurus, Medical, Legal, Idioms, Encyclopedia, Wikipedia. Related to useless: indubitably, predecessor, abruptly use·less  (yo͞os′lĭs) adj. 1. a. Being or having no beneficial use; ineffective: This pen is useless because it's out of ink. See Synonyms at futile. b. Having no purpose or reason; pointless; to no avail: It's useless to argue over matters of taste. 2. Incapable of acting or functioning effectively; ineffectual or inept: He panics easily and is useless in an emergency. use′less·ly adv. use′less·ness n. American Heritage® Dictionary of the English Language, Fifth Edition. Copyright © 2016 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved. useless (ˈjuːslɪs) adj 1. having no practical use or advantage 2. informal ineffectual, weak, or stupid: he's useless at history. ˈuselessly adv ˈuselessness n Collins English Dictionary – Complete and Unabridged, 12th Edition 2014 © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003, 2006, 2007, 2009, 2011, 2014 use•less (ˈyus lɪs) adj. 1. of no use; not serving the purpose or any purpose; unavailing. 2. without useful qualities; of no practical good. [1585–95] use′less•ly, adv. use′less•ness, n. Random House Kernerman Webster's College Dictionary, © 2010 K Dictionaries Ltd. Copyright 2005, 1997, 1991 by Random House, Inc. All rights reserved. ThesaurusAntonymsRelated WordsSynonymsLegend: Switch to new thesaurus Adj. 1. useless - having no beneficial use or incapable of functioning usefully; "a kitchen full of useless gadgets"; "she is useless in an emergency" ineffective, ineffectual, uneffective - not producing an intended effect; "an ineffective teacher"; "ineffective legislation" unprofitable - producing little or no profit or gain; "deposits abandoned by mining companies as unprofitable" unserviceable - not ready for service; "unserviceable equipment may be replaced" useful, utile - being of use or service; "the girl felt motherly and useful"; "a useful job"; "a useful member of society" Based on WordNet 3.0, Farlex clipart collection. © 2003-2012 Princeton University, Farlex Inc. useless adjective 1. worthless, of no use, valueless, pants (slang), ineffective, impractical, fruitless, unproductive, ineffectual, unworkable, disadvantageous, unavailing, bootless, unsuitable He realised that their money was useless in this country. worthless useful, practical, valuable, effective, productive, fruitful, workable, advantageous 2. pointless, hopeless, futile, vain, idle, profitless She knew it was useless to protest. pointless worthwhile, profitable 3. (Informal) inept, no good, hopeless, weak, stupid, pants (slang), incompetent, ineffectual He was useless at any game with a ball. Collins Thesaurus of the English Language – Complete and Unabridged 2nd Edition. 2002 © HarperCollins Publishers 1995, 2002 useless adjective 1. Having no useful purpose: ineffectual, inutile, unusable, worthless. 2. Incapable of being used or availed of to advantage: impracticable, impractical, unnegotiable, unserviceable, unusable, unworkable. 3. Having no useful result: barren, bootless, fruitless, futile, unavailing, unprofitable, unsuccessful, vain. Idiom: in vain. 4. Not having the desired effect: ineffective, ineffectual, inefficacious, inefficient. The American Heritage® Roget's Thesaurus. Copyright © 2013, 2014 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved. Translations Spanish / Español Select a language: inútil useless [ˈjuːslɪs] ADJ 1. (= ineffective) [object] → que no sirve para nada; [person] → inútil this can opener's useless → este abrelatas no sirve para nada compasses are useless in the jungle → las brújulas no sirven para or de nada en la selva she's useless → es una inútil he's useless as a forward → no vale para delantero → no sirve como delantero I was always useless at maths → siempre fui (un) negado or un inútil para las matemáticas 2. (= unusable) [object, vehicle] → inservible; [limb] → inutilizado, inútil he's a mine of useless information! (hum) → se sabe todo tipo de datos y chorraditas que no sirven de nada to render or make sth useless → inutilizar algo 3. (= pointless) → inútil it's useless to shout → de nada sirve gritar, es inútil gritar Collins Spanish Dictionary - Complete and Unabridged 8th Edition 2005 © William Collins Sons & Co. Ltd. 1971, 1988 © HarperCollins Publishers 1992, 1993, 1996, 1997, 2000, 2003, 2005 use2 (juːs) noun 1. the act of using or state of being used. The use of force to persuade workers to join a strike cannot be justified; This telephone number is for use in emergencies.uso, utilización 2. the/a purpose for which something may be used. This little knife has plenty of uses; I have no further use for these clothes.uso 3. (often in questions or with negatives) value or advantage. Is this coat (of) any use to you?; It's no use offering to help when it's too late.utilidad 4. the power of using. She lost the use of her right arm as a result of the accident.uso 5. permission, or the right, to use. They let us have the use of their car while they were away.uso ˈuseful adjective helpful or serving a purpose well. a useful tool/dictionary; She made herself useful by doing the washing for her mother.útil ˈusefulness noun utilidad ˈusefully adverb in a useful way. He spent the day usefully in repairing the car.útilmente ˈuseless adjective having no use or no effect. Why don't you throw away those useless things?; We can't do it – it's useless to try.inútil be in use, be out of use to be used or not used. How long has the gymnasium been in use / out of use? en uso/desuso, dar un uso/no darle un uso come in useful to become useful. My French came in useful on holiday. resultar útil have no use for to despise. I have no use for such silliness / silly people. no querer saber de it's no use it's impossible or useless. He tried in vain to do it, then said `It's no use.' es inútil make (good) use of, put to (good) use He makes use of his training; He puts his training to good use in that job. sacar partido/provecho de Kernerman English Multilingual Dictionary © 2006-2013 K Dictionaries Ltd. useless → inútil Multilingual Translator © HarperCollins Publishers 2009 useless adj inútil English-Spanish/Spanish-English Medical Dictionary Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, or visit the webmaster's page for free fun content. Link to this page:   Facebook Twitter     Finally, Farlex brings you all the rules of English grammar, all in one place, explained in simple terms. The Farlex Grammar Book is available now in paperback and eBook formats. Feedback Finally, all the rules of English Grammar in one place. Explore The Farlex Grammar Book now for FREE. Flashcards & Bookmarks ? Please log in or register to use Flashcards and Bookmarks. You can also log in with Facebook Twitter Google+ Yahoo TheFreeDictionary presents: Write what you mean clearly and correctly. Correct all you're your grammar errors instantly. Try it now. Mentioned in ? aidless anopheles anopheline barren bauchle bitslag bogotify boonless bootless bootlessness Cassate destroy discard dissipation Disutilize dud duff dufferdom effectless References in classic literature ? "I purposely abstain from troubling you by any useless allusions to myself. Vanstone has left it, seems like taking a journey for nothing -- and my staying in London appears to be almost equally useless. View in context The adult might become fitted for sites or habits, in which organs of locomotion or of the senses, &c., would be useless; and in this case the final metamorphosis would be said to be retrograde. View in context Mordaunt tried for a moment to read in the general's face if this was simply a useless question, or whether he knew everything. View in context Useless! The air had made the flame attached to the conductor more active; the match, which at rest might have burnt five minutes, was consumed in thirty seconds, and the infernal work exploded. View in context The attempt proved to be useless, and worse--it seemed to make her suspicious. View in context But while he was seeking with thimbles and care, A Bandersnatch swiftly drew nigh And grabbed at the Banker, who shrieked in despair, For he knew it was useless to fly. View in context During the scene of tumult, Andrea had turned his smiling face towards the assembly; then, leaning with one hand on the oaken rail of the dock, in the most graceful attitude possible, he said: "Gentlemen, I assure you I had no idea of insulting the court, or of making a useless disturbance in the presence of this honorable assembly. View in context "It is useless, mother, to speculate on what might have happened. View in context I'm glad there's something to give my life for, for it's not simply useless but loathsome to me. View in context Those who tried to understand the general course of events and to take part in it by self-sacrifice and heroism were the most useless members of society, they saw everything upside down, and all they did for the common good turned out to be useless and foolish- like Pierre's and Mamonov's regiments which looted Russian villages, and the lint the young ladies prepared and that never reached the wounded, and so on. View in context That is to say, justice is useful when money is useless? View in context More results ►   Dictionary browser ? ▲ Usbegs Usbek USC USCA USCB USCG USD USDA USDAW use use immunity use of force policy use of goods and services use up useable useableness use-by date used used to used-car used-car lot usedn't useful usefully usefulness useless uselessly uselessness Usenet usen't user user group user interface user-definable user-defined key user-friendliness user-friendly username user-unfriendly Ushant U-shaped U-shaped valley Ushas usher usher in usher out Usherance Usherdom usherette ushering in Usherless ▼ Full browser ? ▲ usefully usefulness usefulness usefulness usefulness usefulness usefulness usefulness Usefulness of Training Topics for Domestic Violence Questionnaire usefulnesses usefulnesses USEG usege usege usege USEI USEIA USEIC USEIGHT Usein Kysytyt Kysymykset Useinov, Mikael Useinov, Mikael Aleskerovich USEIR Useit USEITI USEK USEL USELC USELEMCMOC USELEMNORAD useless useless as an ashtray on a motorbike useless as tits on a boar hog useless as tits on a bull useless as tits on a nun Useless Bits of Information Useless Fact of the Day Useless Inert Nothing Useless Information for You Useless Information Society Useless language Useless languages Useless Management Overhead Useless Movie Quotes Useless Piece of Information Useless Piece of Stuff Useless S. Grant Useless S. Grant Useless use of cat Useless Use of Grep Useless, Unsuccessful, And/Or Unpopular Memes uselessly uselessly uselessness uselessness USELMNORAD USELMS USEM usen't Usenbaev, Alymkul Usenet ▼ Correct all you're your grammar errors instantly. Try it now. Facebook Share Twitter CITE   Site: Follow: Facebook Twitter Rss Mail Share: Facebook Twitter LinkedIn Mail Open / Close More from Dictionary, Thesaurus, and Translations Mobile Apps Apple Android Kindle Windows Windows Phone Free Tools For surfers: Free toolbar & extensions Word of the Day Bookmark Help For webmasters: Free content Linking Lookup box Terms of Use Privacy policy Feedback Advertise with Us Copyright © 2003-2020 Farlex, Inc Disclaimer All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.    
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.