Reminiscences of a Stock Operator
by Edwin Lefèvre
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First published in 1923, this thinly fictionalized biography of legendary speculator Jesse Livermore — referred to as "Larry Livingston" — remains one of the most widely read books in trading history, a century after its original publication. Told in the first person, it traces Livermore's journey from a teenage bucket-shop trader reading tape prices in the 1890s to becoming one of the most feared and celebrated speculators on Wall Street, notorious for his ability to call major market turns and for his repeated dramatic reversals of fortune. The book is less a how-to manual than a psychological study of speculation itself: the discipline required to wait for the right setup, the ego that causes traders to override their own judgment, the corrupting influence of tips and advisors, and the devastating emotional cycles that accompany large gains and losses. Livermore's insights on trading with the trend, the importance of position sizing, and the danger of averaging into losing positions have proven remarkably durable. Every generation of traders rediscovers this book, and market professionals who have read it a dozen times still cite it as the most honest account of what speculating in markets actually feels like.