Jesse Livermore was one of the greatest traders who ever lived. He was one of the first modern stock traders, becoming a legend in the financial trading world. He had an innate ability to spot trends in stocks and the markets in general, and he had a penchant for making incredibly shrewd trades – both big and small.
But while Jesse Livermore was a remarkable trader, he was also an astute investor. At various points in his life, he suffered tremendous losses – sometimes to the tune of millions of dollars. But Livermore was also able to recognize the importance of learning from his mistakes, and his ability to bounce back from setbacks defines him as much as his trading prowess.
In fact, Livermore viewed his errors – and the subsequent losses – as essential to learning. He believed that the only way to truly become a better trader was to make mistakes and learn from them. By leveraging mistakes as points of growth, Livermore was effectively “rising from the ashes” in many of his trades and investments.
Livermore was also extremely passionate about the stock market, often quote saying “The stock market is never wrong—it drifts in the right direction!” He stood by his conviction that, even when the markets leaned in an unfavorable direction for traders, that they should still make trades and reap the reward of being a shrewd trader.
In essence, Jesse Livermore believed that mistakes were integral to success and that rising from the ashes was the only way to grow. And for anyone who wants to become a successful trader, Jesse Livermore’s advice stands until this day as one of the most important lessons to follow.