💥Meet Jesse Livermore: Who made the equivalent of more than $3 billion one day.
Jesse Livermore was the greatest stock market trader of his day. Born in 1877, he became a professional trader before most people know you could do such a thing. By age 30 he was worth the inflation-adjusted equivalent of $100million.
By 1929 Jesse Livermore was already one of the most well-known investors in the world. The stock market crashed that year that ushered in the Great depression but it was during this difficult times that he cemented his legacy in history.
More than a third of the stock market’s value was wiped out in October 1929 similar how altcoins have lost an average of 60% of its value and many recorded liquidations. Jesse Livermore had been short the market, betting that stocks would decline in value. In one day, Jesse Livermore made the equivalent of more than $3 billion. During the worst month in the history of the stock market he became one of the richest men in the world.
However, four (4) later, something tragic happened. After his 1929 massive success, Jesse Livermore became very complacent, overflowing with confidence, made larger and larger bets and eventually lost everything. Broke and ashamed, he disappeared for two days in 1933 and took his own life.
Lessons:
He was good with getting wealthy but very bad at staying wealthy.
Getting money is one thing and keeping money is another thing.
Getting money and keeping money are two different skills.
You’re not invincible: there will always be winning days and losing days.
Don’t underestimate the power of risk management.
