Jesse Livermore (1877-1940)

Most traders know that Jesse Lauriston Livermore Livermore or Jesse was the father of traders at its time. In addition he also became a legend of the stock market and known as the ' King of Speculators ' (Speculator King) and ' the great bear of Wall Street ' due to the enormous profit when the market is in a bearish Wall Street crash that occurred in 1907 and 1929.

The story begins when her Jessi Livermore ran away from home at the age of 14 years old because his father insisted him to become a farmer, Jesse Livermore, who just "elementary school bench finally working on a small stock brokerage in Boston, United States. From there he learned self-taught and began his career trading until it finally became known as Speculator King (King of Speculation).

Although known as the ' King of Speculators ', Livermore is not a speculator chancy as gamblers. He's full of calculations in determining the timing and money management, as well as adept at controlling his emotions. At that time not yet a technical analysis and sophisticated now that could be helped by many indicators, but Livermore has been applying the pattern formation of price movement analysis (price patterns), techniques to maximize profits by pyramiding and analysis of trend of price movement with the rule ' cut losses, let profits run '.

In Jesse Livermore trading, applying some rules that are currently still in use by traders of the world, among others:

1. Do not enter the market when market conditions or sideways trend direction is not clear.
2. Apply the pivot point daily to find out the direction of price movement.
3. Always wait for confirmation both in terms of technical and fundamental before actually doing the order buy or sell.
4. Always use stop loss (determine risk), and exit only when the trend reverses direction (reverse).
5. When a bullish market You must trade on stocks that are very strong, and when the market is bearish, you must sign in on stocks the weakest, avoid the shares ' hesitation ' or ambiguous.
6. Never doing techniques "averaging down*" in the position of being losers.

* Technique of "averaging down" is the technique of open market by using a number of lots 2 x with same direction. example: trend up then do buy 1 lot and it turns out the price down, but instead buy using 2 lots and so on.

Jesse Livermore said there are 3 things that are causing traders lose out, among other things:

• Less knowledgeable traders on market instruments
• Trading rules (methods and strategies) that are not expressly
• Violations of the agreed rules (discipline in money management)

Jesse Livermore (1877-1940): the most successful Speculators in the history of Traders