Jesse Livermore, a prominent American stock trader and pioneer of day trading, famously made approximately $100 million during the Wall Street crash of 1929. He achieved this by amassing significant short positions, utilizing over 100 stockbrokers to conceal his activities. At one point, he faced a paper loss of over $6 million in early 1929, but his foresight in predicting the market decline led to an astounding profit during the crash. This staggering fortune would be equivalent to over $1.7 billion in today's money and cemented his reputation as one of history's greatest traders. As a result, he was dubbed the "Great Bear of Wall Street" and "The Wolf of Wall Street," though this also led to public backlash and death threats, prompting him to hire an armed bodyguard.
Despite his remarkable financial success, Livermore's personal life was fraught with turmoil. He experienced a second divorce in 1932, a traumatic incident in 1935 where his wife shot his son (non-fatally), and a lawsuit from his Russian mistress. Compounding his personal struggles, the establishment of the U.S. Securities and Exchange Commission (SEC) in 1934 introduced new regulations that impacted his trading strategies. These factors contributed to a decline in his mental health.
By 1934, only five years after his monumental 1929 gain, Livermore had lost his entire $100 million fortune. He filed for bankruptcy for the third time, listing assets of $84,000 against debts of $2.5 million. He was suspended from the Chicago Board of Trade in March 1934. Additionally, he paid off an $800,000 tax bill in 1937. His financial advisory business, opened in 1939, did not prevent his eventual downfall. On November 28, 1940 (Thanksgiving Day), Jesse Livermore died by suicide at the age of 63 in the Sherry-Netherland hotel in Manhattan, leaving behind a note to his wife, Harriet (Nina), stating, "Can't carry on any longer. This is the only way out. I am unworthy of your love...I am a failure." He had liabilities exceeding his assets at the time of his death.
