Written in the 1920s, Reminiscences of a Stock Operator - Illustrated Version by Edwin Lefevre is a true classic and is considered among the top trading books of all time. The writings are based on a series of interviews with legendary trader Jesse Livermore, who the author gives the fictional name of Larry Livingston. The exploits of this larger than life trader are nothing short of extraordinary.
This book was re-released as an illustrated version and includes the actual articles from The Saturday Evening Post and illustrations that accompanied the articles. Royalties from this release will go to Lefevre's family.
The Legend of Jesse Livermore
Even though Livermore made some incredible trades, he was highly leveraged and it was just a matter of time before he went bust. And so he did. Actually, Livermore went bust several times and even accrued debts of more than $1 million.
Amazingly, Livermore was able to come back after devastating losses and very little trading capital to use as leverage. Within a year, he was able to take a very small stake and get back over a million dollars. The ups and down are difficult to imagine, but the man could sure take a lot of money out of the market in a short period of time. Keeping it was his problem.
Trading Was and Always Will Been the Same
This book does not give you a secret formula for trading with a new age, scientific technical method that so many of today’s marginal traders are hopelessly looking for. But is does give you an analysis of how the stock and commodities markets really work from the perspective of someone who figured it out well before most of us were even born.
One important gem you can take out of this book is that the markets have always been the same and they always will be the same. The players may change, but the game is still the same. There was obviously less regulation in the early 1900s, but trading mentality is still the same. The “sucker” is still alive and well and always will be. The smart players who recognize this will continue to take advantage of them.
Nobody Beats the Market
As you will certainly discover from reading the book, he was often right and made a lot of money, but when he lost, he lost big. This is the reason why Lefevre wrote the articles in the first place. His theory was that profits could be taken out from time to time, but the markets would get you in the end. Usually, this fate was due to arrogance, self-destruction, greed and many of the other tendencies that traders fall prey to.
A Timeless Classic
Livermore will often directly explain market principles and some of his trading techniques. There are other times where you almost have to read between the lines to fully understand what Livermore is getting at. It is a good idea to read this book more than once, as you will certainly learn more from it. In closing, you have to ask yourself – how many of the trading books published in the last 30 years will be among the best sellers a hundred years from now – like Reminiscences of a Stock Operator?
