Before watching the video: As much as I like Patrick, I probably will criticize the video because we don't really know too much of Livermore's later trading and also time change. So what worked for him in the 1920s, may not have worked anymore in the 30s or 40s. The point is that the record is not complete on Livermore and there can be other reasons for his eventual fail at trading. If you don't change with the times you will lose eventually everything, no matter how your risk management is, it will just take longer. I will post again after watching the video. By the way you could say gambler about a bunch of current HF managers, specially a female one who like Tesla stocks. ---------------------------------- Very interesting YT comment: @myronfrobisher "This was superb - Jesse Livermore had a nephew by the name of John (Jack) Grant who I believe grew up in Florida who was a very dear friend of mine . To look at Jack and at Jesse the family resemblance is striking . To make a long story short Jack was a retired Lt. Col. from the USAF and like Jesse a genius with a degree in electrical engineering. He was also a commodity trader and market analyst both of us working for Siegel Trading Co. in Oklahoma City in the mid 70's . Jack taught me how to trade options always emphasizing the dangers of getting the big head when you had a nice win. Jack was involved in a nasty divorce and had suffered a substantial trading loss in a soybean play - he didn't show up for work one morning - I went to his apartment . He was deceased by his own hand , this was in June of 1976. Thanks in large measure to Jack's tutelage I am very comfortably retired. At the time of Jack's passing I knew nothing of the fates of Jesse Livermore's sons."
He committed suicide. So I wouldn't watch videos about him. Anyway, nothing wrong with gambling for pleasure or for making $$$. But don't lose your life.
I find it very interesting how many times Livermore made huge fortunes through trading with strict risk management and then he would turn around and lose so much of the same fortune(s) from ignoring risk management... & Yes... It is very sad he finally stopped himself out of the game.
After watching the video: This was excellent. I was expecting more personal judgements, but Patrick stuck to the facts. Surprising Hollywood or HBO haven't discovered the story, yet.
I liked the part about how Livermore, once in the money and flush again, completely REPAID his debts to the many brokerages he owed money too on Wall Street after he had earlier declared bankruptcy (defaulted on debts) from huge trading losses with them.
Jesse's story was one of the few detailed accounts of the 1920's bubble. Now we live in bubbles. Back then it was unique. Most Fed members studied the 1920's bubble as a prototype. They never, ever want to talk or write about the great depression afterwards.
To you it does not matter that he killed himself over being a failure... at trading... and that he lost almost all of what he ever made.
Livermore was a real trader. For him, it was all about trading. Money was just a byproduct. Ya don't see many of his character these days.