Trading Rules Written 100 Years Ago. They Still Crush.

Jesse Livermore's Enduring Wisdom: 10 Rules Every Trader Should Know

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Jesse Livermore’s Rules Were Written 100 Years Ago. They Still Crush.

Before there were trading algorithms, Discord servers, and zero-commission brokers, there was Jesse Livermore—the man who famously made (and lost) millions by reading nothing but price and volume. Born in 1877, Livermore taught himself to trade in the bucket shops of Boston and later went on to short the 1929 stock market crash, pocketing over $100 million in the process.

He was bold, brilliant, and brutally honest about what it takes to survive the markets. Though his era was different, his trading rules still echo through every chart, every breakout, and every blown account today.

Here’s how you can apply Livermore’s timeless wisdom to today’s fast-moving markets:

1. Forget the Tips—Trade on Your Own Terms

Chasing someone else’s “hot pick” is a fast track to failure. Do your homework, build your edge, and make your own calls.

2. Ride the Wave—Follow the Market, Don’t Fight It

Livermore aligned himself with the trend. If the market is moving, move with it—not against it.

3. Pull the Trigger with Conviction

When your setup hits, act. Second-guessing means missed opportunities. Trust your process and go all in—strategically.

4. Kill Losers Quickly—No Mercy

The fastest way to blow up your account? Holding onto hope. If a trade turns against you, get out and move on.

5. Let the Winners Work

Don’t interrupt a trade that’s doing its job. Big wins need time—so don’t settle for scraps when the market offers a feast.

6. Tune Out the Noise—Watch the Price

Forget headlines and hype. Price action tells the real story. Follow the chart, not the chatter.

7. Know When to Sit on Your Hands

No clear setup? Don’t trade. Livermore waited for ideal conditions—and that’s why he survived and thrived.

8. Trade Turning Points, Not Random Spikes

He looked for key inflection points—where trends were born or died. That’s where he made his money.

9. Quality Over Quantity

You don’t need 20 trades a day—you need one great one. Wait for the trades that scream “go.”

10. Protect Your Capital Like It’s Your Last Dollar

Capital is your lifeline. Guard it. Without it, your strategy, discipline, and dreams mean nothing.

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