Part 6/8:
The culmination of Livermore’s forecasting abilities came with the onset of the Great Depression. As the U.S. stock market soared during the Roaring Twenties, Livermore, unlike many of his contemporaries, sensed the monumental collapse that was imminent. On Black Tuesday, October 29, 1929, as stocks began to descend rapidly, Livermore profited again, making a staggering profit as the market crashed.
Yet, not only was his financial acumen demonstrated through mere gambling; Livermore had a deep understanding of market psychology. He saw through the euphoria that gripped the financial world and positioned himself to capitalize on the ensuing fallout.