Jesse Livermore is a legendary stock market trader of the 20th century who made millions as a speculator and is accredited with creating some of the earliest stock trading methods still used today. His methods, which take into account the trader’s psychological state of mind, have seen many investors and speculators reap huge benefits. Speaking of his own experiences, Livermore said: “Mistakes, needless mistakes, are all part of the game. You’ve got to make them to learn the game”.
What Livermore was trying to say is that mistakes are an essential part of the learning process. Just as a bird cannot master the art of flight without falling on its first attempts, so is the case with learning to be an effective stock trader. However, there is a silver lining – Livermore never shied away from admitting his own mistakes and learning from them. By recognizing his errors and studying why they occurred, he was able to continuously improve his trading performance and take greater risks with confidence.
Mistakes are unavoidable but that doesn’t mean they have to be permanent. Through reflection and hard work, any mistake can be overturned until you reach your desired result. Livermore’s life is evidence of this – he had to endure many trials and setbacks throughout his career but was able to turn his worst mistakes into success which propelled him into the financial stratosphere.
His advice to aspiring investors and speculators should still be heeded today – accept mistakes, learn from them and then move forward with greater confidence. Success is not always the outcome, but you will never reach your goals if you don’t first make mistakes and learn from them. Through his experiences, Livermore proved that mistakes are only temporary – if you’re willing to rise from the ashes and use your errors as an opportunity to learn and grow, you will eventually be able to soar higher than ever.
