Hidden Lessons From Jesse Livermore
Should we really be trying to emulate a man who was so troubled?
Jesse Livermore
On this day in 1940 famous trader Jesse Livermore sadly committed suicide.
Whenever I want to write about his trading it always bothers me that he died that way.
Should we really be trying to emulate a man who was so troubled?
The book Reminisces of a Stock Operator is a well-known classic.
Filled with gems and insights into:
- Trading psychology
- Discipline and patience
- Learning from mistakes
- Adjusting strategy to different market conditions
- Risk management
- Independence of thought
But what’s the biggest takeaway?
Maybe it’s nothing to do with how he traded.
Perhaps there’s a bigger lesson in there…
He had a pretty rocky personal life.
Three marriages, his last wife Harriet Metz Noble was married and divorced four times before her wedding to Livermore. (Remember this was the 1930’s!)
He made a fortune and lost it several times over.
Why did he lose so much?
Could he have not syphoned off enough to set him up for life, invest it elsewhere, and still trade with a decent pot?
Maybe we’ll never know.
Anyway, perhaps alongside the trading lessons there are other gems to take onboard:
- You can never truly say you’ve made it.
- Always respect the risk of ruin.
- Take care of your mind.
- Diversify your wealth from just trading.
- Find a partner who supports your trading.
- Find joy and happiness in life.
- Don’t just pursue money.
Maybe those are the true lessons from the book…
There’s zero point in having a few hundred million in the bank if you’re desperately unhappy.
It’s got to be the full house or nothing…
- Happiness
- Fulfilment
- Health
- Fun
- And obscene wealth…
Thanks, Jesse for all the lessons. Trading or not…