Jesse Lauriston Livermore (July 26, 1877 – November 28, 1940) was an American stock trader considered one of the greatest traders in history. He made and lost several fortunes during his career, including famous profits during the 1907 and 1929 market crashes. Livermore began trading at age 14 in Boston bucket shops and developed his own methods for reading market...
"The market exists to serve you, not to guide you. Use market prices to your advantage — buy when the market offers bargains and sell when it offers premiums."
Use the market as your servant, not your guide.
Read Full Analysis →"Markets move in cycles driven by human emotion. Understanding where you are in the cycle helps you prepare for what comes next and position accordingly."
Understand where you are in the market cycle.
Read Full Analysis →"In the short run, the market is a voting machine; in the long run, it's a weighing machine. Prices can diverge wildly from value, but eventually converge."
Prices diverge from value short-term but converge long-term.
Read Full Analysis →Jesse Livermore has 3 key principles on margin of safety. The most important one is "Market as Your Servant" — The market exists to serve you, not to guide you.
Jesse Livermore applies margin of safety through several key principles including "Market as Your Servant" and "Market Cycles Awareness". These principles guide practical investment decisions and have been tested across decades of market cycles.
Jesse Livermore's approach to margin of safety is distinguished by a focus on long-term thinking and fundamental analysis. With 3 specific principles in this area, Jesse Livermore provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.
