Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our Livermore traded on his own, using his own funds, his own system, and not trading anyone else's capital. Towards the end of his life, Livermore lost his entire fortune and was living off of family annuities. Price patterns, combined with volume analysis, were also used to determine if the trade would be kept open.

Jesse was highly successful but also lost his fortune several times, usually from not following his own rules. A normal reaction occurs where prices retrace somewhat against the trend, but volume is lower on retracements than it was in the trending direction.