Why Jesse Livermore never managed others' money?

Q

qll

Jesse Livermore was only a trader. He never managed others' money. Why?

By the way, he never diversify either. The only money management he used is stop loss.
 
<i>"Jesse Livermore was only a trader. He never managed others' money. Why?"</i>

Simple. He never learned how to trade. That's why his career ended abruptly
 
Quote from otcstockfund:

you make less money managing opm when you already have the cash to trade
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didn't Jasse lost all of his money then kiled himself?
you will never kill yourself, if you use others' money.

what i believe is that: he is just a gambler. without diversification, one trade can kill him!!! becaues in his early days, he was a scalper, later he was holding overnight positions. overnight gap can kill him!
 
Lack of learned skills = self management doomed Livermore's career. He never learned to trade... his observations and quotes are hindsight, wishful thinking
 
Maybe Jesse could trade, he had an edge but maybe no sound money management rules, no ?
Did he use stoplosses ?
Why they call him sometimes the greatest trader that ever lived ?!
I am just guessing because I never read anything about him.
 
I read the standard books about Jesse Livermore and you can bet he was trading with an edge, but his money management was killing him several times. He was making fortunes fast but he lost all he made several times. It seemed to me he was a kind of manic-depressive gambler. And in the end he killed himself but if you ask me not because he lost once again a fortune.. He did that several times before. I think he was mentally ill and I would bet he had had a history of suicide attempts. So he was an interesting man and a great trader but for sure no role model - even not as a trader cause of his terrible risk management. The greatest traders imo are those who are consistently profitable over decades because they have a good risk management and alway learn to adapt to the changing market environment.
 
I posted this on another Livermore thread a while back.....
Quote from Pabst:

Several of the post's on this thread are the most asinine, judgmental BS I've read in many a moon. Someone's going to say with a straight face that a high school dropout quote boy who parlayed a few dollars into at one point perhaps nine figures, wasn't talented? LMFAO. I hear the same thing about Rich Dennis. The guy ran 2k into 200 mil of his own $$ in 12 years but people say he sucks because he blew out a fund. Whatever.

So if he'd quit in 1930 he'd be the greatest Horatio Alger story ever told but because he got nailed in the bounce off the '32 lows, he's a bum? I'd call it the Mark Cuban syndrome. Better to be lucky than good.

Reminds me of the heat Barry Bonds is taking. Here's a guy who was in the 400/400 club with a few MVP's before he ever heard the word steroid. Now there's people who think his whole career was predicated on juice. Just as no sportswriter could hit 700 HR's even if they were injected with HGH's at Dr. Frankenstein's estate, no one on ET will replicate Livermore even if they had no SEC, 10-1 stock margins, and a tap on Bernanke's' phone.


BTW: Dan Zanger comes close. He's kept it (with DD's) but made a comeback splash on a very leveraged GOOG position.
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the topic is really why he failed ( http://www.marketthoughts.com/jesse_livermore.html )

it is why he does not accept others' money.

he made to 10k then lost all. if i were him, i would run others money after he got to 1m level.

my question is

1 is his personality lack of people skills?
2 will managing others money change his views on trades?
3 will his style be forced to change?
 
The general ignorance on Jesse never ceases to amaze me. For God's sake, read a book on him!

Quote from qll:

Jesse Livermore was only a trader. He never managed others' money. Why?

Because he did. Whenever he went broke, people trusted him and lent him money which he properly paid back.

Now if you meant why he didn't run like a fund, he didn't need to. He had enough capital on his own.

By the way, he never diversify either. The only money management he used is stop loss.

Wrong again. He had several different positions at the same time in different securities. That is called diversification...
 
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