Jesse Livermore – Boy Plunger (Tom Rubython)

Trader's Library #7 · Speculation classics and biographies. The true story of a legend: a brilliant trader who couldn't protect what he made.

Author: Tom Rubython · Original: Jesse Livermore – Boy Plunger: The Man Who Sold America Short in 1929 · Year: 2014 · Usefulness for traders: ★★★★☆

What it's about

A full biography of Jesse Livermore: his childhood, the bucket shops, his big short bets in 1907 and 1929, repeated bankruptcies, his private life and his suicide in 1940.

What it gives a trader

A good companion to “Reminiscences of a Stock Operator”. It shows what the fictionalised version doesn't: how much private life, lifestyle and mental state affected market decisions. The best lesson: a brilliant read of the market doesn't protect you from a lack of risk and money management.

Lessons for traders

• the ability to read the market is no substitute for risk management
• great success increases the tendency towards overconfidence (overconfidence, Atlas of biases #11)
• life outside the market affects decisions in the market more than you'd think

What to watch out for

A popular biography, not an academic one. Some of the Livermore anecdotes circulate without reliable sources.

Discussion

The discussion takes place in Hetman Capital Club (in Polish). Join the discussion in the Club →

Navigation

← #006 Rogue Trader (Nick Leeson) · Library index · #008 The Man Who Solved the Market (Gregory Zuckerman) →

Educational content, not investment advice. The book description is my own summary and assessment, not quotations. Edition details were checked in catalogues and bookshops, and where there was doubt I said so plainly.