Reminiscences of a Stock Operator is a 1923 roman à clef by American author Edwin Lefèvre. It is told in the first person by a character inspired by the life of stock trader Jesse Livermore up to that point.
The book remains in print (ISBN 0471770884). In December 2009, Wiley published an annotated edition in hardcover, ISBN 0-470-48159-5, that bridges the gap between Lefèvre's fictionalized account and the actual people and places referred to in the book. It also includes a foreword by hedge fund manager Paul Tudor Jones.
The book can be divided into three parts:
- 1890-1910: Livermore was able to make easy money by taking advantage of the bid–ask spread on inactive stocks with leverage of 100-to-1 at bucket shops.
- 1910-1920: Livermore was a stock trader on the New York Stock Exchange, where he went bust over and over again because he used too much leverage.
- 1920s: Livermore engaged in market manipulation, charging fees of 25% of the market value of the manipulated stock. This was before the creation of the U.S. Securities and Exchange Commission in 1934.
In his 2008 book, The Age of Turbulence, Alan Greenspan called the book "a font of investing wisdom" and noted that quotes from the book such as "bulls and bears make money; pigs get slaughtered" are now adages.
|Wikiquote has quotations related to: Reminiscences of a Stock Operator|
- Koppenheffer, Matt (October 26, 2006). "Reminiscences of a Stock Operator". The Motley Fool.
- epstein, gene (October 30, 2010). "History Lessons for Investors". Barron's.
- Greenspan, Alan (September 9, 2008). The Age of Turbulence: Adventures in a New World. Penguin Books. p. 28.
- USEEM, JERRY (March 21, 2005). "The Smartest Books We Know". Fortune.