Jesse Livermore Jr Lessons from a Legendary Trader

Jesse Livermore Jr was a legendary trader who learned valuable lessons from his father, Jesse Livermore Sr. His father's infamous losses in 1929 taught him a crucial lesson: that even the most seasoned traders can fall victim to market volatility.

One of the most important lessons Jesse Livermore Jr learned from his father was the importance of cutting losses quickly. He saw firsthand how his father's refusal to cut losses led to devastating consequences.

Jesse Livermore Jr's own trading career was marked by significant successes and failures. He was known to be a risk-taker, often doubling down on trades that were going against him. This approach ultimately led to his downfall.

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Jesse Livermore Jr. was a stock trader and the son of Jesse Livermore, a famous stock trader and market speculator.

He was born in 1901 in Boston, Massachusetts.

Jesse Livermore Jr. learned the art of trading from his father, who was known for his bold and often reckless trading strategies.

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He began trading on his own in the 1920s and quickly gained a reputation for his skill and insight.

Jesse Livermore Jr.'s trading career was marked by both success and failure, and he was known to have made and lost fortunes throughout his life.

He was a strong advocate for the use of technical analysis in trading, which he learned from his father.

Jesse Livermore Jr. was also known for his interest in the occult and the supernatural, and he was a believer in the idea that the stock market was influenced by cosmic forces.

Jesse Livermore's trading strategy was impressive, considering the lack of financial statistics and fundamental analyses available at the time. He bought and held during bull markets and sold when market momentum shifted, often using high degrees of leverage.

His first trade at 15 earned him $3.12, and by 16, he had quit his job at Paine Webber & Co. to trade on his own. Livermore's success was so consistent that he was eventually banned from Boston's bucket shops.

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Jesse Livermore, known as the "Bear of Wall Street", was a master trader who made and lost three fortunes between 1900 and 1940. He was known for his uncanny ability to buy and hold during bull markets and sell when market momentum shifted.

Livermore's strategy was impressive, considering that companies didn't publish financial statistics or conduct fundamental analyses back then. He made a profit of $3.12 in his first trade at the age of 15, which is a great example of how even small wins can add up over time.

Livermore's success was so notable that he was banned from Boston's bucket shops because of his consistent success. He then moved to New York City, where he continued to trade on his own.

One of Livermore's most famous trades was shorting Union Pacific stock in 1906, which netted him a $300,000 profit two days later after an earthquake struck San Francisco. This trade shows how Livermore was able to capitalize on unexpected events that affected the market.

Livermore's peak wealth would equate to $1.5 billion today, which is a staggering amount considering he traded freely and unregulated until the launch of the SEC in 1934.

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The White House has a significant impact on trading, as seen in the case of Jesse L. Livermore, who cornered the cotton market after World War I.

President Woodrow Wilson petitioned Livermore to sell his strong position in cotton to avoid harming the US economy.

This shows that even the highest levels of government can influence trading decisions.

J.P. Morgan had a significant influence on Jesse Livermore's trading decisions. Morgan, a renowned banker, urged Livermore to close his short positions during the panic of 1907, which Livermore did.

This decision ultimately led to Livermore netting an additional $3 million on the market rebound. It's worth noting that Morgan's influence was likely a result of his concern for the country's economic stability.

Livermore's experience with Morgan highlights the importance of considering external factors when making trading decisions.

Jesse Livermore Jr. left behind a treasure trove of wisdom for traders, compiled in his book "How to Trade in Stocks". One of the most valuable parts of the book is the 21 rules of trading that Livermore shared. These rules are a must-read for anyone looking to improve their trading skills.

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Livermore's first rule is that nothing new ever happens on the stock market - the same emotions and psychological factors that drive market movements today are the same as they were in the past. This is a crucial lesson for traders, who often get caught up in the latest fads and trends.

Here are Livermore's 21 rules of trading, condensed into a list for easy reference:

These rules are a testament to Livermore's experience and wisdom as a trader, and can be applied by traders of all levels to improve their skills and avoid common pitfalls.

Jesse Livermore was known for his uncanny ability to make and lose fortunes in a single day. He made the most money in a single day and lost the most money in a single day, according to Tom Rubython's book Boy Plunger: The Man Who Sold America Short in 1929.

Between 1900 and 1940, Livermore made and lost three fortunes, a testament to his skill and risk-taking abilities. His strategy was to buy and hold during bull markets and sell when market momentum shifted.

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Livermore's first trade at the age of 15 earned him a profit of $3.12, which sparked his interest in trading. By age 16, he had quit his job at Paine Webber & Co. and began trading on his own.

Livermore's success led to him being banned from Boston's bucket shops, where he had been trading, due to his consistent success. He then moved to New York City to continue his trading career.