Lesson: you should not change course and go from long to short or vice versa. Always stick with one plan. You are either a permabull or a permabear
Speculation is risky business. Live by the sword. Die by the sword. Should have just enjoyed his big win. But obviously he enjoyed gambling more than anything else.
Just learned this or suddenly felt like sharing? Btw Jesse had some kind of mental disorder.
The lesson to learn is leverage is a double-edge sword. One can’t go bankrupt without leverage.
Trading is perfectly ok, just limit position size, treat as entertainment, you win, get paid to be entertained, you lose, what do you expect, paid for entertainment.
Jesse, a real trader of those times, mastered the art. I read his book and shared the details. He was stock ticker operator, raised to that time equivalent of now billionaire, then destroyed his life with greediness.
Risk/reward, higher risk higher reward, lower risk lower reward.
He took big risk, sometimes work out, sometimes don’t, no new insight.
It worked out five years, and many brokers did not entertain him as he was famous winning the bets. From those days to now, market behaves the same way, support and resistance.