For those of you that heard about Jesse Livermore, you will find a little weird the analogy with forex trading. However, his methodology was focused on the technical aspects of price and that is why you may find some useful information which could be applied to trading.
If you really want to learn more about him, we recommend the book “How to trade in stocks”. It is very short to read, but it really contains a lot of interesting and valuable points.
Source:https://kingworldnews.com
Briefings about Jesse Livermore
He is regarded by many as one of the greatest speculators of all times. He made and lost fortunes at the beginning of the twentieth century. During the great crash of 1929, he made around 100 million US dollars, by shorting the US stock market.
What stands out from his approach to trading was the focus on technical aspects of price. He kept journals with price changes, as you will see from the book we’ve mentioned above.
At that particular time, the fundamental analysis was trending, since the technology was not as it is today and it was pretty tough to monitor charts.
If you decide to read his book, you will find a lot of interesting things about crowd psychology and market sentiment. No get-rich-quick scheme can be found there, but instead, a thorough analysis of markets and how they behave from a technical point of view.
What can forex traders learn from Jesse Livermore?
First, its desire to accomplish everything that he wanted. He came from a really small town, started trading with 5 dollars and managed to be successful in a field where most fail.
Second, it is his unique mindset and approach that helped him generate the wealth he had. Although he had a terrible personal life, from a professional point of view we cannot judge him.
Make sure to study his life and work and you will find a lot of inspiring things about trading, especially if you are one of those that need to start with huge disadvantages. Hope you enjoyed the material and stay tuned for the next ones.