Reminiscences of a Stock Operator
There are many books about trading and investments which I read during last 50 years of my life. I found that the book titled- ‘Reminiscences of a Stock Operator’ is the most educational, enjoyable and entertaining book about trading and investments that I have come across. This book was published in 1923 (almost 89 years ago). I first read it before 30 years from now, but I still find it relevant and timely. It is on the top in my list of all time favorite books.
‘Reminiscences of a Stock Operator’- is an auto-biography of a speculator and exceptionally colorful commodities and stocks trader named- Jesse Livermore. This autobiography is fictionalized and thinly disguised. Jesse made and lost around 4 multimillion dollar fortunes while trading during early mid twentieth century. Jesse was a trader during the era when traders such as James Keene, John D. Rockefeller, Jay Gould and Arthur Cutten were considered as top traders. Jesse was blamed for causing the 1929 stock market crash. He is considered to be one of the most important figures in the history of American stock market.
Reminiscences of a Stock Operator’s first part talks about Jesse’s history, it talks about his days when he used to work as an operator with a stock brokerage firm. The book talks about the days before the government imposed the security regulations on stock brokers. It also talks about betting parlors, where people used to place bets on very thin margins. The book also highlights that during those days, stock operators used to pocket good percentage of money from invested funds, as vast parts of bets used to be wiped out due to minor fluctuations. It also suggests that operators never used to execute the sell or buy orders; they just used to accumulate these orders into a bucket.
According to this book, after working as an operator for few years, Jesse developed an uncomfortable feel for the market movement. Jesse also learned to understand and guess the manipulation methods of large market operators. Soon he became famous as a person with ability to anticipate the stock market fluctuations, and he made millions of dollars for his trading activities. Jesse was banned from playing by several stock operators.
Livermore had lost all his fortunes twice in his life, when market operators decided to come together against him. He started from scratch and earned back whatever he had lost both the times. The book- ‘Reminiscences of a Stock Operator’ is one of the best books which talks about psychological aspects of investing, anecdotes, philosophy and market wisdom. It also talks about Livermore’s escapades and various trading campaigns. You will definitely get attracted to this book once you start reading it. It offers experiences which are timeless, and are relevant even in the current market scenarios. It will definitely help you to build your investment career. If you read it once, you will definitely read it again and again. So, go and get your copy today, and read this timeless tale.
Edwin Lefèvre was appointed an Ambassador of the United States by President Howard Taft in 1909, serving in posts in a number of countries, including Italy, France, and Spain. At the end of his diplomatic career in 1913, Lefévre returned to his home in Vermont where he resumed his literary work, writing novels and contributing short stories for magazines such as The Saturday Evening Post and McClure’s.