Jesse Livermore

Jesse Livermore (1877–1940) was an American stock trader known for large speculative trades, including short sales during major market declines. His trading ideas became widely known through accounts such as Reminiscences of a Stock Operator.

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Edwin Lefèvre: An American journalist and author whose Reminiscences of a Stock Operator fictionalizes a trader’s career closely modeled on Livermore’s. His novel is the best-known account of Livermore’s methods and market exploits.
Trend following: An investment approach that buys assets with rising prices or sells those with falling prices. Livermore is often associated with waiting for a price trend to confirm before committing.
Panic of 1907: A financial crisis in the United States marked by bank runs, falling stock prices, and a severe credit contraction. Livermore later credited successful short selling during this panic with establishing his reputation.
Reminiscences of a Stock Operator: A 1923 novel by Edwin Lefèvre about the career of a fictional stock trader modeled on Jesse Livermore. The book made Livermore-like trading experiences widely accessible while disguising them as fiction.
Bernard Baruch: An American financier and political adviser who built a fortune through investing and speculation. Baruch’s career offers a contemporary point of comparison for Livermore’s approach to market speculation.
Technical analysis: The study of market prices and trading activity to assess trends and make investment decisions. His trading accounts emphasize interpreting price action rather than valuing companies from fundamentals.
Wall Street Crash of 1929: The sharp collapse of U.S. stock prices in October 1929 that preceded the Great Depression. Accounts describe Livermore making a major fortune by selling short during the crash.
How to Trade in Stocks: A 1940 book by Jesse Livermore presenting his views on stock speculation and trading. It is Livermore’s own late-career statement of trading rules and market beliefs.
William Delbert Gann: An American trader and market analyst associated with technical methods for forecasting prices. Gann represents another early twentieth-century trader whose reputation rests on market-timing methods.
Short selling: Selling borrowed securities in expectation of buying them back later at a lower price. Short sales made Livermore’s profits during sharp market declines especially conspicuous.