every famous trader has had the roof blown off his head numerous times in one lifetime. Livermore's book was written in 1923 - Livermore's best days (and worst) were yet to come. He made 200 mio in the crash of 1929 - then lost it all by 1932 - made it back...then lost it all and finally committed suicide during late 1930's. some would say if you can make and lose 200mio+ in one lifetime..then you never deserved to have it in the first place...sure, but to blatently say he is a bad trader is would be blasphemy to most "gurus" of the stock market
The question is not whether or not he was a great trader. Sometimes, he traded well (making tens of millions of dollars in a single year in the early 20th century). Sometimes, he traded poorly. That's why one must be careful with defining oneself as a trader. The association of one's self-worth with net worth can be costly psychologically. As for an objective evaluation of his trading techniques, just read and analyze his "market key". Or, you can just choose to ignore his writings and be just as happy.
What is amazing is how much of the book IS applicable to today's markets and trading, seeing that the events in it are from about 80-90 years ago. Good trading to all. C
I think Reminiscences and Atlas Shrugged were the two books that made me want to be a trader. There is so more you can learn from Reminiscences: One of the most important is Cut your losses short and let your profits run. Anyway, I took this Entrepreneurship class, the professor was really good but he had started 3 businesses that all failed. But there were atleast 20 successful businesses started by his students. The main thing is after reading the book, did you learn anything of value that will make you a better trader. If you did not, then maybe the book is not for you or maybe trading is not for you.
Actually, there was quite a bit in the book about important things to consider as a trader, rather than the book being entirely full of negativity. Have you even read the book?
Yes, I learned tons from the book. I learned more from market wizards, which is grossly under-quoted compared to the amount of times Livermore get quoted.
The guy was a manic depressive yet a genious. In the age of no prozac and no shrinks I wonder how he ever made money in the first place? let alone 100 million in 1929.
Unstable? Maybe. But to start as a bucket shop runner then make millions trading back in a time when $10K was a fortune, means that JL was an incredibly intuitive and ballsy trader. He just didn't know when to stop. Much like modern types like Zander and possibly Niederhoffer. There is huge skill involved, of course, but luck in all things can't be discounted...
I wonder if you could explain to me how you know Livermore was a "horrible" trader? Because as I understand it you are a new trader based on this recent post of yours: http://www.elitetrader.com/vb/showthread.php?s=&postid=958915#post958915 I wonder how a new trader would know what was "horrible" or not? What I find even more interesting is that you claim that Livermore's tactics are not applicable in today's markets. Again, an amazing pronouncement coming from a self-described "new" trader. Most traders have their ups and downs. Even the book you say you like, Market Wizards, most of those interviewed started by losing most, if not all, of their money. Frankly I think the markets never really change very much. That's based on my time in the market....almost 40 years. Yeah, volume grows, we have electronic markets these days. But most of the trading issues Livermore talks about are still true today. I'm a Livermore fan. I've read all of the books related to Livermore numerous times. I can't imagine how anyone could not have something to learn from them. But hey, each to his own. OldTrader