Jesse Livermore is considered the best stock trader in history. He was the main character of one of the most famous books on trading, Reminiscences of a Stock Operator, published in 1923.
Livermore is mostly known for taking short positions before the 1906 San Francisco earthquake and before the Wall Street Crash of 1929. Those two trades made him a fortune and gave him the respect he still has by the investment community.
But that’s not the only reason Livermore is celebrated today. He was a true pioneer of stock trading, just like Benjamin Graham was of value investing (the investment philosophy that Warren Buffett relies on).
Livermore brought his profession to a new level in the early 21st century by dedicating his whole life to trading. His habits were unique for his time.
He had laser focus from 9.30 AM, when the market opened, until 4 PM when the final bell rang. In an interview found in the latest edition of his book, How to Trade In Stocks, he gave the following advice to traders:
