Jesse Livermore is a legendary Wall Street investor who earned millions from successful trading ventures before acquiring his vast wealth. He is widely recognized for his pioneering methods and thought of as a trendsetter in the stock market.
Known more for his perfectionism, Livermore adopted a unique style of trading which set him apart from the rest. His book ‘How to Trade in Stocks’ described a trading philosophy that didn’t rely solely on technical analysis. Rather, it focused on breaking down the market and understanding its movements using both technical and fundamental indicators.
It is said that Livermore also had a wise saying that would only be known after his death. “Hold on to dead money positions only as long as they can be sold at a profit.” This quote expressed his belief that speculators should never become too emotionally attached to a stock and that they should be ready to accept losses as part of the trading process.
In his day, Livermore developed a variety of strategies to increase his profits. One of the methods he used was called ‘pyramiding’, which involved gradually adding to an existing position to take advantage of a stock’s rising price. The idea was to “maximize return on capital by buying the contracts earlier and at a lower price while limiting losses.”
Livermore’s method of pyramiding was so effective that it became known as the “Livermore method”. His ability to make profits was seen as a revolutionary step in the stock market.
Today, Livermore’s wisdom continues to be relevant in the stock market. His advice has helped establish guidelines for traders to follow and his knowledge of investments and trading has been passed down from generation to generation. His legacy remains strong and is a testament to the intelligence and expertise of a true Wall Street legend.
Jesse Livermore is a legendary Wall Street investor who earned millions from successful trading ventures before acquiring his vast wealth. He is widely recognized for his pioneering methods and thought of as a trendsetter in the stock market.
Known more for his perfectionism, Livermore adopted a unique style of trading which set him apart from the rest. His book ‘How to Trade in Stocks’ described a trading philosophy that didn’t rely solely on technical analysis. Rather, it focused on breaking down the market and understanding its movements using both technical and fundamental indicators.
It is said that Livermore also had a wise saying that would only be known after his death. “Hold on to dead money positions only as long as they can be sold at a profit.” This quote expressed his belief that speculators should never become too emotionally attached to a stock and that they should be ready to accept losses as part of the trading process.
In his day, Livermore developed a variety of strategies to increase his profits. One of the methods he used was called ‘pyramiding’, which involved gradually adding to an existing position to take advantage of a stock’s rising price. The idea was to “maximize return on capital by buying the contracts earlier and at a lower price while limiting losses.”
Livermore’s method of pyramiding was so effective that it became known as the “Livermore method”. His ability to make profits was seen as a revolutionary step in the stock market.
Today, Livermore’s wisdom continues to be relevant in the stock market. His advice has helped establish guidelines for traders to follow and his knowledge of investments and trading has been passed down from generation to generation. His legacy remains strong and is a testament to the intelligence and expertise of a true Wall Street legend.
