Jesse Lauriston Livermore

Jesse Livermore. Great single. The original trend trader On Wall Street is always one and the same. Speculation is as old as this world: today at the exchange is what has been before, and that again later. Jesse Lauriston Livermore People interested in astonishment, where such great traders like Ed Sekot (Ed Seykota) find inspiration and role models? Jesse Livermore (Jesse Lauriston Livermore) is one of those people who lived in the early 20 th century. He is one of the earliest trend traders. Jesse Livermore was born in the United States of America, in South Acton, Massachusetts, in 1877. Coming from a family farmer who has received — as one would say now — lower secondary education, Livermore by force of circumstances began an independent life as early as fourteen years. The boy that started a three-year course in mathematics for the year was not like working in the field and, with support from the mother, with five dollars in his pocket, he ran away from home. As the legend goes, the coach, where Jess rode to Boston, stopped in front of brokerage. So she pointed out the future fate of the titan its role. Boss’s office needed a smart fellow to record stock quotes on the board — and Livermore took the place. Six months later, he will hold his first bargain, and a year later pay back the loan mother — and another three hundred from the top. Subsequently, Livermore returned the debt even after bankruptcy, when all obligations to creditors have been removed. But then no one could have imagined that bright-eyed, taciturn lad to become the biggest speculator in human history, wins and loses hundreds of millions of dollars, will be four times and broke once again gets on his feet, will be elevated to the rank of a demon the media market and will remain forever in this unenviable role. Rise Livermore as golovokruzhitelen, however, and its numerous falls. After making three dollars and fourteen cents a dozen, fifteen, he earned a thousand shares on speculation, and to twenty years to enrage all the small brokerage houses States: shops like the one where Jesse had once worked at the blackboard, were semi-legal — they worked on the principle of gambling, existing at the expense of customers, rather than through commissions from the transactions, because of what visitors zaimevshie bad habit is always to win, to «trading» is not allowed. So at the beginning of XX century, received the nickname Junior Grip (boy plunger), Livermore got on the New York Stock Exchange (NYSE). In fact, his whole life he never had not visited the trading floor or the NYSE, or any other exchange of those with whom he worked — conducting all their transactions through brokers. But this did not prevent him to earn and lose a fantastic amount. In 1906, Livermore held its first major operation which netted hundreds of thousands of dollars, and by the end of the decade made famous in just a day millions. In the 20th years he was the most luxurious offices throughout New York City: Livermore has built its own trading floor, where a huge board, six clerks wrote out quotes for him alone — a financial genius, chose to work in complete silence. Posh’s country residence, the giant yacht, many Rolls-Royces, «jewelry for the wives and girlfriends, go mad, the audience — he lived a lavish lifestyle and pay for errors, respectively: a few times losing everything to the last penny, Jess left the arena with millions of debt, but always came back, each time expanding the scale of its operations. Livermore career peak came in 1929-th — after years of boom, when the U.S. were thrown into the abyss of financial panic and economic slowdown. It was his best year: anticipating the collapse of the markets, he earned one hundred million dollars. In those fateful days, when the bankrupt speculators poured from the windows of the houses, he fed the market out of its hands, and the press called him the chief culprit of the total stock market crash and ensuing decade of the Great Depression. However, journalists have made of Livermore scapegoat long before these dark days, copying it to all the major price movements, who could not find a better explanation, and at the end of the 20th he came at an opportune moment. The man, whose intellectual power of bringing terror to the powerful, often forcing the financial bosses and the powers that be ask him to reduce the temperature and spare markets (when they asked for, and when threatened), now almost forgotten. One book, «Memoirs of a Stock Operator», should read every one: it is formally released in 1923 work was written by journalist Edwin Lefevre and tells about the life of a fictional hero, Larry Livingston. Lefevre wrote «Memoirs» on the basis of a long interview with Livermore, but in reality there is little doubt that a large part of the book wrote itself Livermore — too fine and precise details of this fascinating story, which became belletrizovannym describing a middle-aged great speculator. Another book was written by Lawrence Livermore National accurately: it is «How to trade in stocks», published shortly after his death. As far as I know, it has not been translated into Russian, but was reprinted several times. They say it was written by Jesse bankruptcy after another, hoping to earn enough money to return to the market. Either way, his name has now been forgotten by all except the adventurers who are trying to pass off as a gold mine own intricate system for trading on the exchange. It is unlikely that these pitiful attempts deserve a story about yourself. But I stand for something today and the work of the Livermore? After all, since when he has won and lost millions on the stock exchange, it took almost a hundred years! Change the principles of trade, have changed the markets themselves and the world around! Then do not even have phones, today the whole world is tied into one global network. Then tape the Exchange Telegraph, a board with quotes and your own sanity — Today computers per second cheated billions of numbers. Even the charts of price movements, without which today can not do any speculator, in times of Livermore were considered nothing more than a remarkable innovation, which had yet to prove their right to life! Changed the rules, incomparably increased volumes — can the advice a century ago to bring at least some benefit today? Simply offer modern Speculators abandon his usual tools of technical analysis, and you thought was a madman. But open the book Livermore: booms and panic, deception and hope — all this has been and still is. The experience left Livermore and now — the best textbook for the speculator and the truth of this statement is obvious to anyone who has read the primary sources at least once. Since the early days and until the end of his career, he has the exchange relied on common sense and logic. In it you will not find references to the supernatural abilities that are not given to anyone else. It has no characteristic of many leading speculators to nowhere philosophy lies and black magic of technical systems, incomprehensible even by its creators. Livermore, who took the decision for millions of dollars, most of his life came from information on current prices, supply and demand into account the news. From time immemorial rights markets hope, fear and greed — and this knowledge, combined with the ability to not repeat their own mistakes, it is enough to achieve success. History of Jesse Livermore breaks tragedy, love to quote the institute bore, who teaches the younger generation on the right path: having suffered another collapse (say, the cause was mad at speculators government) and spent several years in unsuccessful attempts to once again put together a start-up capital, he committed suicide. There are always people who go faster than the rest of the crowd. They are destined to lead others, and no matter how much this crowd has changed.