"<i>Do you think Jesse was a great trader or not?"</i>
Define the term <b>trader</b>
That is the basis from which any opinions can emerge from there.
My definition of a trader is someone who can regularly, consistently profit from buy/sell process of goods or services on purely speculative terms. That is done on equal footing with everyone else... no inside information or special privilege.
Does Jesse fit that definition? Well, let's see...
Most of his huge winnings came from backroom deals and inside knowledge that let him take positions which worked. He also tried to corner some markets with supposed "inside information" that blew up, when he got conned himself.
What part of that had to do with superior trading performance on equal footing with others? Was that duplicatible by others, or exactly akin to inside trading at hedge funds that you & I have zero chance to ever accomplish?
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Jesse had no consistent system or method to create a lasting edge. He threw sh*t at the proverbial walls enough times, had some of it stick for big hits and banked some rolls. Even quicker, he lost it repeatedly.
Where was the edge as a trader? None. His edge and "adult life" wealth all came from backroom deals on inside information. Can you do the same, or aren't you capable of being as great a trader simply by exclusion of illegal edges available to you?
Livermore was a great gambler, not a trader. Hell, what's the title of his book? <i>Reminisces Of A Stock <b>Trader?</i></b>
What is your definition of an "Operator"? That is the specific label given to Jesse in big, bold print. What does "operator" mean? I take it to mean someone who had limited ability to manipulate and position on inside information. What do you think it means?
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Am I jealous of what Jesse accomplished? Hardly. I've already done everything (and a whole lot more) that he did except for make & squander millions of dollars.
Here's my beef. Everyone goes around quoting his supposed quotes like they are gospel. In fact, much of it is detrimental to success as a trader. Trying to pick tops & bottoms is a loser's game. Show me someone who thinks that is a long-term successful approach and I'll show you a net loser. Eventually, extended trends kill them all.
Jesse tried to game price turns as his core strategy. Some of that was done via inside information, some of it on hunches via his skill as a gambler. In the end, "operating" price turns resulted in the way it always does... dead broke.
In my opinion, the story of Livermore is no less tragic than 1,000s of others. One that comes to mind is Jack Whittaker... man who won the $315mil Powerball jackpot on 12/25/2002.
I had the first three numbers of the drawing correct on my ticket out in Livingston, MT that night. My heart stopped when they read off the numbers drawn, for a moment. What a birthday present it would have been for me!
But I digress.
Jack has since been arrested many times, his granddaughter died of a heroin overdose and he is now reportedly broke. $113 million cash, after all taxes, apparently gone.
Should we write a book about Jack titled, <i>"Reminisces Of A PowerBall Operator?</i> I'm sure he has plenty of stories to tell about living large for the past four years.
It was a fun but tumultuous ride while it lasted... for both men profiled above.
