Trade Like Jesse Livermore
By Richard Smitten
New Orleans trader Richard Smitten introduces contemporary whizz kids who will often be found glued simultaneously to the Financial Times and Bloomberg; to the algorithmic methods originated by legendary trader Jesse Livermore who started in 1892. Livermore’s techniques are still relevant over 100 years later because of their great success which predicted with consistent certainty the behaviour of markets.
Many traders today spend increasing amounts of time trying to build the ultimate automated machine that will offer its operators a freedom from the mental rollercoaster of basing decisions on intuition and ‘educated’ guesses which often prove irrelevant within our volatile world. There are a myriad number of resources on how to build the best trading frameworks however one must decide to start somewhere. After 45 years of gaining significant and notable traction, Livermore’s insights are a good a place as any to begin taking notes on best and most effective practice.
‘Slow and steady’ seems to be the underlying thread of Livermore’s career journey. Smitten begins with an introduction to the man himself before settling down to the nuts and bolts of the acclaimed theories, which are also peppered with specific tidbits from Livermore’s personal patterns;
- Chapter 1: Meet Jesse Livermore
- Chapter 2: Timing is Everything
- Chapter 3: Livermore Trading Discoveries
- Chapter 4: Livermore Pattern Recognition Timing Keys: Pivotal Point Trading
- Chapter 5: Perfecting Money Management
- Chapter 6: Emotional Control
- Chapter 7: How Livermore Prepared for His Day
- Chapter 8: General Livermore Issues
- Chapter 9: Livermore Quotes—Trading Truths
- Chapter 10: Summary of Livermore Trading Rules
- Chapter 11: Livermore Secret Market Key.
Trade Like Jesse Livermore maybe worth picking up simply for the fact that the luminary made $3,000,000 in one day and also bucked the trend, taking $100,000,000 just for predicting the Great American Depression. A fascinating contributor to financial history, Livermore’s reputation is not undeserved.
The results of our consultation with financial professionals and those interested in researching trading who have encountered Smitten’s book has proven as consistent as Livermore’s trades; with the majority of readers offering solid 4-star reviews. Smitten has offered up potentially complex and dry information in a way that is easy to digest and retain, which has been appreciated by the varied demographic of this guide. There is some dissent from those looking for a very detailed and specific blueprint to how Livermore made his fortune, whereas others advocate the all-round introduction to this massively influential man.
In a sphere where endless contributing factors and variables are studied before decisions are made, Smitten seems to offer a clear path to riches with Trade Like Jesse Livermore which is admittedly lacking in complexity. However, that fact is refreshing and certainly provides value not just to those who are new to trading but also to those who have had their daily work patterns bogged down by information overload. Sifting through this information and making decisions like humans instead of reliable machines eats those all-important seconds, so Livermore’s approach surely still has its place.
Review by Andrea Photiou