Jesse Livermore was one of Wall Street’s most revered traders of the 20th century, and he strove to leave behind a legacy of wisdom after a career full of successes and failures alike. A key lesson to learn from Jesse Livermore is that no matter how hard you fall, there is a possibility to rise again from the ashes.
In an interview with Forbes, Livermore detailed his opinions on mistakes, saying that “the time to worry is when you find yourself making the same mistakes over and over again.” He stressed that while you should never be complacent in trading, you should also learn from your mistakes and strive to avoid them in the future.
In Livermore’s mind, mistakes are inevitable, so the goal should be to recognize them, reflect on them and use them as learning experiences. While mistakes can be devastating, it is essential to recognize them, cope with them, and have the courage to address them and move forward.
One way to do this, according to Livermore, is to learn from the mistakes of others. He suggested that investors should study the mistakes of successful people, as well as those of unsuccessful people. Doing this can provide valuable insight into the markets, and help you identify and address your own mistakes before they cause big losses.
When you do make a mistake, Livermore suggested that you accept it, move on, and take the necessary steps to ensure that you don’t make the same mistake twice. He also recommended taking some time off to assess the mistake, reflect on the situation and learn from it, rather than burying your head in the sand.
At its core, Jesse Livermore’s message is that if you make a mistake, you can still rise from the ashes. By observing the mistakes of others, accepting responsibility for your own mistakes and taking the necessary steps to make sure they are not repeated, you can create the opportunity to not just survive, but to thrive.