Despite being published nearly 100 years ago, Edwin Lefèvre’s 'Reminiscences of a Stock Operator' remains a popular trading book – so much so, in fact, that it was recommended by more of our analysts than any other title in our top 10.
The book is a thinly veiled biography of Jesse Livermore – one of the most famous traders of the 20th century – who went from trading in small ‘bucket shops’ to making and losing millions on Wall Street several times over. Its enduring popularity stems from its honest reflection on the protagonist’s successes and failures, and the inclusion of the lessons he learnt along the way – lessons that remain relevant to this day.
The book is cited as a major source of learning by the traders in Jack Schwager’s 'Market Wizards', while former Fed Chairman Alan Greenspan describes it as a 'font of investing wisdom'. The 2010 annotated edition includes commentary by Jon D. Markman, which bridges the gap between the fictionalised world of the original and the events of Livermore’s life, and also explains how to apply the strategies described in the book to today’s markets.
Why was it chosen?
'A masterclass revealing the mind, motives and mechanics of a lifetime speculator.'
'Set in the early twentieth century, the life of Larry Livingston (aka Jesse Livermore) provides valuable lessons and insights about trading in the present day. The book teaches some basic concepts about financial markets and highlights the array of experiences that a trader can face.'