Jesse Livermore was one of the most legendary Traders of all time.
Commonly known as COTTON KING, made his 100Mn$ shorting the 1929 fall.
In just 13 years he filed 3 bankruptcies, 2 divorces & Suicide in 1940.
What went wrong ? > Here’s a breakdown of each event : 🧵
Commonly known as COTTON KING, made his 100Mn$ shorting the 1929 fall.
In just 13 years he filed 3 bankruptcies, 2 divorces & Suicide in 1940.
What went wrong ? > Here’s a breakdown of each event : 🧵
Pre summary/:
Childhood :
Jesse Livermore was born on 26th of July, 1877 in Massachusetts in a very poor family. His father was a farmer and his mother was a homemaker. Jesse was a gifted child, at the age of 3, he was able to read and write and by age 5, he was already reading newspapers.
Jesse Livermore was born on 26th of July, 1877 in Massachusetts in a very poor family. His father was a farmer and his mother was a homemaker. Jesse was a gifted child, at the age of 3, he was able to read and write and by age 5, he was already reading newspapers.
He was really good with numbers and maths, some even say he completed 3 years of Arithmetic Studies in just 1 years.
Early life :
Unfortunately at the age of 14, his father forced him to drop out of school to help him in his farming business. Jesse’s mother quite well knew that he was not meant for farming and was passionate about his dreams.
Unfortunately at the age of 14, his father forced him to drop out of school to help him in his farming business. Jesse’s mother quite well knew that he was not meant for farming and was passionate about his dreams.
Looking at the passion, he had Jesse’s mom gave him 5$ and advised him to go and find a job in the city. But jesse being jesse Tom up another job of a Chalk Boy at a place called Paine, Webbers & Co.
Chalk boy is nothing but writing stock prices on a blackboard every 10 to 15 minutes, it might be boring, but he loved it. And that’s how he entered the unexplored ocean of stock markets.
Entry into stock markets :
After his job as a chalk boy. He discovered how numbers play a role in the markets. Surprisingly using the same he would sneak out during lunch and bet on the systems that he learned.
After his job as a chalk boy. He discovered how numbers play a role in the markets. Surprisingly using the same he would sneak out during lunch and bet on the systems that he learned.
1st profit made was 3$ but moving on he made more than his job offered. Hence he entered the markets with 1000$ that he had made at the job.
He was so good at it that he was banned at the bucket shops because he made money literally every-time ! Just at the age of 20. THE REST IS HISTORY.
Jesse kept trading, he would make some good trades, lose and again make it back and the process went on and on.
Jesse kept trading, he would make some good trades, lose and again make it back and the process went on and on.
Best trade:
But then…
In October 1929 when the Never before crash unveiled, Dow dropped 25% and everyone was shitting their pants and even Jesse’s family was tensed as they knew he was aggressive in his bets and he would’ve lost it all.
But then…
In October 1929 when the Never before crash unveiled, Dow dropped 25% and everyone was shitting their pants and even Jesse’s family was tensed as they knew he was aggressive in his bets and he would’ve lost it all.
Surprisingly Jesse was short on the markets to the core. He came home smiling as he had juiced out the BIG SHORT OF 1929 where he made nearly 100mn$ , Dow in the next 3 years dipped till 41$ - nearly a 89% drop in the index.
This was his Best trade ever !
This was his Best trade ever !
Worst trade :
Just after the biggest win of his life, 42 days later into 1932 Jesse was badly hurt because of his short holdings and, to add insult to injury, went long just as the bounce ended. By the middle of 1933, all his gains from 1929 had evaporated & owed 5mn$ too !
Just after the biggest win of his life, 42 days later into 1932 Jesse was badly hurt because of his short holdings and, to add insult to injury, went long just as the bounce ended. By the middle of 1933, all his gains from 1929 had evaporated & owed 5mn$ too !
Sad death:
Adding to his troubles were stringent rules from the new Securities and Exchange Commission. Many of his tricks and strategies were now illegal and came with hefty punishment.
Adding to his troubles were stringent rules from the new Securities and Exchange Commission. Many of his tricks and strategies were now illegal and came with hefty punishment.
He tried using his methods but failed miserably every-time. He made one last attempt to come back in 1939, but that failed.
Sadly in 1940 he committed suicide and that was the end of Jesse.
Sadly in 1940 he committed suicide and that was the end of Jesse.
Lessons learned:
Risk management is the key
Greed kills
Health is Wealth.
Give time to family
Set Goals, what do you really want in your life.
Set Priorities.
Set an Emergency Fund.
Create multiple sources of income.
Risk management is the key
Greed kills
Health is Wealth.
Give time to family
Set Goals, what do you really want in your life.
Set Priorities.
Set an Emergency Fund.
Create multiple sources of income.
So after reading this thread you might be enlightened about the topic.
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But hang on : If you want to learn how to -
•Catch mega trends in stocks
• Day trade with minimal risk
• Risk defined option trades
• Expiry Hero Zero calls
A 2 step simple process explained here :👇👇
• Hit follow @chartians
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• And For those of you who don't know we share trading and investment related ideas with over 22,000+ subscribers for FREE, yes you heard it right.
You might want to check it out.
FREE LINK : telegram.me
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