All Traders
Portrait of Jesse Livermore

1877-1940

Jesse Livermore

The Boy Plunger

Trend following and tape reading. Livermore believed that stock prices moved in trends and the key was to identify the direction of the major trend early and ride it until signs of reversal appeared.

Trading Strategy

Price action analysis, trend following, pyramiding into winning positions. He focused on leading stocks in leading industries and waited for confirmation before adding to positions.

Key Principles

  • Cut losses quickly and let profits run
  • Never average down on a losing position
  • Wait for the market to confirm your thesis before committing capital
  • The big money is made in the big swings
  • Trade only when the odds are in your favor