Jesse Livermore was an legendary trader of stocks and commodities during the early 20th century. At the height of his fame, he earned more than USD 100 Million. He earned and lost millions of Dollars in his career.
At the young age, he left his house to work in bucket shops. Bucket shops are nothing but gambling house and their bets are based on the actual movement of stocks in New York Stock Exchange. Soon he mastered that game and started betting real money on stocks and earned windfall profits. This led to the banning of him from most of bucket shops. He earned more than what he gave to them.One fine morning he moved to New York to try his luck. His experiences in the bucket shop had helped in making a good fortune in 1909 and 1929 crashes. Most of the time he played the Bear. He was known at that as a big Bear in the stock Market circles.
His famous strategy was to add further positions in winning trades and cutting the losses quickly. Some times he did not follow his own rules. So he lost all his fortunes. He died by killing himself and he was in huge debt when he died.
He has written a book called ‘ Reminiscences ' of a stock market ‘ under a pseudo name. This Book is considered as a classic for its depiction of speculation in an interesting way, even now.
