21 Top Jesse Livermore Quotes For Traders
Nick Schmidt
Nick Schmidt is a co-founder of TraderLion and Deepvue with over 10 years of market experience. Adopting a “less is more” philosophy, he focuses on weekly charts with an emphasis on price and volume.
October 25, 2024
The fascinating story of Jesse Livermore
Jesse Livermore (1877–1940) was a famous stock trader. Known as the “Boy Plunger” and “The Great Bear of Wall Street,” he rose from humble beginnings. Born in Massachusetts, he left home as a teen. He began trading at a Boston brokerage, quickly earning respect for his bold instincts.
By his early 20s, Livermore had turned small sums into millions. He made his fortune with risky trades, like shorting stocks before market crashes. This success made him one of the wealthiest men of his time. However, his life was marked by repeated bankruptcies and personal struggles.
Livermore’s career included major wins and huge losses. He earned millions by shorting stocks during the 1907 Panic and the 1929 Crash. But many blamed him for these crashes, which hurt his reputation. Over time, his high-risk methods and personal issues took a toll. He went bankrupt multiple times, struggled in his marriage, and faced mental health problems. In 1940, he took his own life, leaving a legacy that warns and inspires traders today.
Why Jesse Livermore’s trading insights still matter
Livermore’s life and trading philosophy were famously captured in Edwin Lefevre’s classic book Reminiscences of a Stock Operator. The character “Larry Livingston” was widely understood to be based on Livermore, and the book quickly became a must-read for traders everywhere.
Later, Livermore shared his own trading insights in How to Trade in Stocks. His observations on market behavior, strategy, and psychology continue to resonate with traders today, making his quotes and lessons just as relevant now as they were in the early 20th century.
Top Jesse Livermore quotes
Quotes on Market Behavior and Trend Following
Knowing market behavior and following trends is key to trading success. Jesse Livermore noted that markets follow consistent patterns. By focusing on these patterns, traders can align with market movements and improve their chances of profit. Livermore’s method promotes patience and careful observation of stock behavior. This keeps trading decisions based on real market actions, not on guesswork.
Nothing new ever occurs in the business of speculating or investing in securities and commodities.
Jesse Livermore
I become a buyer as soon as a stock makes a new high on its movement after having had a normal reaction.
Jesse Livermore
Big movements take time to develop.
Jesse Livermore
The leaders of today may not be the leaders of two years from now.
Jesse Livermore
Do not become completely bearish or bullish on the whole market because one stock in some particular group has plainly reversed its course from the general trend.
Jesse Livermore
Don’t trust your own opinion and back your judgment until the action of the market itself confirms your opinion.
Jesse Livermore
The real money made in speculating has been in commitments showing in profit right from the start.
Jesse Livermore
Quotes on Risk Management
Effective risk management is key to long-term trading success. Jesse Livermore stressed the need to protect capital and avoid big losses. This means not overtrading, avoiding adding to losing positions, and steering clear of risky bets. By focusing on risk control, traders can preserve their capital and stay ready for future opportunities.
Money cannot consistently be made trading every day or every week during the year.
Jesse Livermore
Never average losses.
Jesse Livermore
One should never permit speculative ventures to run into investments.
Jesse Livermore
Never buy a stock because it has had a big decline from its previous high.
Jesse Livermore
Never sell a stock because it seems high-priced.
Jesse Livermore
The money lost by speculation alone is small compared with the gigantic sums lost by so-called investors who have let their investments ride.
Jesse Livermore
Markets are never wrong – opinions often are.
Jesse Livermore
Quotes on Trading Psychology and Discipline
Mastering trading psychology is essential for staying objective. Livermore noted how emotions and biases affect trading performance. He emphasized controlling emotions, avoiding wishful thinking, and sticking to a plan. With a strong mindset and less emotional influence, traders can make logical, strategic decisions instead of reacting out of fear or greed.
The human side of every person is the greatest enemy of the average investor or speculator.
Jesse Livermore
Wishful thinking must be banished.
Jesse Livermore
It is not good to be too curious about all the reasons behind price movements.
Jesse Livermore
It is much easier to watch a few than many.
Jesse Livermore
Few people ever make money on tips. Beware of inside information. If there was easy money lying around, no one would be forcing it into your pocket.
Jesse Livermore
As long as a stock is acting right, and the market is right, do not be in a hurry to take profits.
Jesse Livermore
If you cannot make money out of the leading active issues, you are not going to make money out of the stock market as a whole.
Jesse Livermore
Frequently asked questions
Start Learning with TraderLion for free.
Enroll in the Ultimate Trading Guide, get access to fresh course releases, exclusive webinars, and more.
