THE WISDOM OF JESSE LIVERMORE - QUOTES FAMOUS

QUOTES FAMOUS - Jesse Lauriston Livermore (July 26, 1877 – November 28, 1940) was an American stock trader. He is considered a pioneer of day trading and was the basis for the main character of Reminiscences of a Stock Operator, a best-selling book by Edwin Lefèvre. At one time, Livermore was one of the richest people in the world; however, at the time of his suicide, he had liabilities greater than his assets.

In a time when accurate financial statements were rarely published, getting current stock quotes required a large operation, and market manipulation was rampant, Livermore used what is now known as technical analysis as the basis for his trades. His principles, including the effects of emotion on trading, continue to be studied.

Some of Livermore's trades, such as taking short positions before the 1906 San Francisco earthquake and just before the Wall Street Crash of 1929, are legendary within investing circles. Some observers have regarded Livermore as the greatest trader who ever lived, but others have regarded his legacy as a cautionary tale about the risks of leverage to seek large gains rather than a strategy focused on smaller yet more consistent returns.

Early life
Livermore was born in Shrewsbury, Massachusetts, to a poverty-stricken family and moved to Acton, Massachusetts, as a child.[5] Livermore learned to read and write at the age of three-and-a-half. At the age of 14, his father pulled him out of school to help with the farm; however, with his mother's blessing, Livermore ran away from home.

Career
In 1891, at the age of 14, he secured employment, as a board boy, posting stock quotes at a Boston, Massachusetts branch of Paine Webber stockbrokerage, at the rate of $5 per week.

In 1892, at the age of 15, he bet $5 on Chicago, Burlington and Quincy Railroad at a bucket shop, a type of establishment that took leveraged bets on stock prices but did not buy or sell the stock. He earned $3.12 on the $5 bet.

From 1893 to 1894, age 16–17, Livermore, nicknamed "The Boy Plunger", was earning about $200 per week, trading at the bucket shops in Boston, much more than his salary at Paine Webber. At the age of 16, he quit his job and began trading full-time. He brought $1,000 home to his mother, who disapproved of his "gambling"; he countered that he was not gambling, but "speculating".

From 1895–1897, age 18–20, he accumulated $10,000 trading profits, a 1,000 per cent net return in three years of trading. However, he was eventually barred by most Boston area bucket shops, because of his consistent winning. Using disguises and false names to trade only prolonged the inevitable city-wide ban.

[bunnyr]

"no one ever when broke by taking a profit" is an incomplete quote, if you read the book you'd know that he is talking about selling too soon, at least do enough research to no post a misleading quote.