The most popular sophisticated American stock trader, Jesse Livermore. How did he trade to make a fortune in the market? The market can be analyzed in two different methodologies, that is the reason professional financial gurus distinguish between investors and speculators. Simply put, an investor is someone who analyzes a corporation and determines how much the corporation is worth. If the value of the corporation is quoted in the market less than it actually is, then an investor is willing to buy its stock since the stock price is undervalued and be able to expect that the stock price would eventually go up. On the other hand, a speculator buys or sells stocks for any other reason. Speculation trades involve a financial instrument and take advantage of the fluctuations of market price movements. Speculators are sophisticated investors or traders who purchase assets generally for short periods of time and utilize strategies in order to profit from changes in its price. Speculators are also called "Technical traders". The well-known speculative trader in American history is Jesse Lauriston Livermore. He lived July 26, 1877 – November 28, 1940, and was a popular American stock trader. He was considered a pioneer of a day trader. He used what is now known as technical analysis as the basis for his trades. What was his life like and what did he do to make a fortune? His asset was accumulated roughly $1.5 billion in today's dollars. I want you to find out the secret of Jesse Livermore in the book "Reminiscences of a Stock Operator". One of Livermore's favorite books was Extraordinary Popular Delusions and the Madness of Crowds, by Charles Mackay,  published in 1841.