Jesse L. Livermore

AAA

DEFINITION of 'Jesse L. Livermore'

Livermore rose from a humble farming background to become a stock trader in Boston. Over the course of his career, he won and lost several fortunes in many arenas. A self-made man with no formal education or trading experience, Livermore focused on making money from the overall market directions and not concentrating on individual stocks. He believed that insider and professional research opinions were not a just means for stock picking as investors had to perform their own analysis.

INVESTOPEDIA EXPLAINS 'Jesse L. Livermore'

Livermore lived from 1877 to 1940. He espoused the strategy of buying and holding during bull markets and selling when market momentum began to shift. He believed that effort was a key component that separated the winners and losers in the investment world.

RELATED TERMS
  1. Stock

    A type of security that signifies ownership in a corporation ...
  2. Bond

    A debt investment in which an investor loans money to an entity ...
  3. Security

    A financial instrument that represents: an ownership position ...
  4. Derivative

    A security whose price is dependent upon or derived from one ...
  5. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  6. Steve Cohen

    A trading magnate also referred to as the Hedge Fund King and ...
Related Articles
  1. Active Trading Fundamentals

    Short Selling: Making The Ban

    Short selling has been around as long as the stock market, and it hasn't always been looked on favorably.
  2. Trading Strategies

    Jesse Livermore: Lessons From A Legendary Trader

    Jesse Livermore's investing philosophy wasn't foolproof, but he's still recognized as one of the greatest traders in history.
  3. Options & Futures

    Buy High And Sell Low With Relative Strength

    The RS strategy seems counterintuitive, but there is evidence to show that it works.
  4. Investing

    What Happened To Obama’s Amnesty Bill?

    The sweeping Republican majorities were supposed to trigger change, but now they are preparing to embrace the Obama immigration policy.
  5. Professionals

    Understanding Interpersonal Skills

    Interpersonal skills are the social skills people use to interact effectively with other people. A lack of good interpersonal skills may lead to unsuccessful personal relationships, as well as ...
  6. Investing News

    The 5 Wealthiest People in Mexico

    Most people in the know have heard of Carlos Slim and his massive fortune. But what about Mexico's other richest people?
  7. Fundamental Analysis

    What is the difference between the acid test ratio and working capital ratio?

    Using liquidity ratios to determine the financial stability of a company is an important tool to accounting professionals and investors.
  8. Fundamental Analysis

    Do you always have to consider intrinsic value when purchasing a stock? Why or why not?

    Take a deeper look at why value investors consider a stock's intrinsic value an important consideration before picking a company to invest in.
  9. Fundamental Analysis

    What are some examples of return on investment capital?

    Read about some basic examples of return on investment capital for publicly traded companies and companies that have a handful of investors.
  10. Bonds & Fixed Income

    What is the difference between the yield of stock and the yield of a bond?

    Explore and understand the various meanings of the investment term "yield" as it is applied to equity investments and bond investments.

You May Also Like

Hot Definitions
  1. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  2. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  3. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  4. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  5. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
  6. Bank Guarantee

    A guarantee from a lending institution ensuring that the liabilities of a debtor will be met. In other words, if the debtor ...
Trading Center