Kathy Lien
BKTraders and Prop Traders Edge
Most traders don't realize that some of the most powerful trading strategies weren't created by modern AI or complex algorithms - they were developed by Jesse Livermore in the early 1900s. After years of applying these century-old principles, I've seen firsthand why they still dominate today's markets. It's time to abandon the noise and embrace the discipline that built trading empires.
Key insights:
- Timeless trading psychology: Learn why Livermore's rules from the early 1900s still outperform modern bot strategies by focusing on unchanging human behavior patterns of fear, greed, and hope
- Anti-tip trading philosophy: Master why following stock tips, Reddit threads, and CNBC price targets is account suicide, and how to build your own conviction through proper analysis
- Trend following mastery: My exact method for riding market waves instead of fighting them, using Livermore's "follow the market, don't outsmart it" approach for consistent profits
- Precision risk management: How to cut losses quickly while letting winners run, including the legendary "kill losers fast, let winners work" strategy that preserved Livermore's capital
This isn't just about technical analysis - it's about understanding the psychological discipline that allowed Livermore to profit from the 1907 panic and 1929 crash. When you master these principles that predate screeners, Discord rooms, and commission-free trading, you'll build a foundation that withstands any market condition.
Learn why hesitation costs money, how to avoid analysis paralysis, and the exact mindset shift from "how much can I make" to "how much can I afford to lose". These rules have survived 100 years because human behavior hasn't changed.
Past performance is not indicative of future results. Trading forex carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade any such leveraged products, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading on margin, and seek advice from an independent financial advisor if you have any doubts.
Editors’ Picks
EUR/USD eyes 1.1800 barrier near two-month highs
EUR/USD extends its gains for the second successive session, trading around 1.1780 during the Asian hours on Tuesday. On the daily chart, technical analysis indicates a persistent bullish bias, as the pair moves upward within the ascending channel pattern. Additionally, the 14-day Relative Strength Index at 68.89 sits near overbought, signaling strong demand. RSI remains elevated, which could cap gains if overbought conditions emerge.
GBP/USD knocks ten-week highs ahead of holiday slowdown
GBP/USD found room on the high side on Monday, kicking off a holiday-shortened trading week with a fresh spat of Greenback weakness, bolstering the Pound Sterling into its highest bids in ten weeks. Pound traders are largely brushing off the latest interest rate cut from the Bank of England as the UK’s central bank policy strategy leaves the water murky for rate-cut watchers.
USD/JPY extends losses toward 156.00 amid Japan's verbal intervention
USD/JPY keeps pushing lower, while under 156.50 in the Asian session on Tuesday. The Japanese Yen extends gains after Japan's officials warned against "one-sided and sharp" currency moves, raising fears of a forex market intervention.
Editors’ Picks
Gold bulls seem unstoppable amid supportive fundamental backdrop
Gold is seen building on the previous day's strong rally of over 2% and continues scaling new all-time highs for the second consecutive day on Tuesday. The commodity climbs closer to the $4,500 psychological mark during the Asian session and remains well supported by a combination of factors.
EUR/USD eyes 1.1800 barrier near two-month highs
EUR/USD extends its gains for the second successive session, trading around 1.1780 during the Asian hours on Tuesday. On the daily chart, technical analysis indicates a persistent bullish bias, as the pair moves upward within the ascending channel pattern. Additionally, the 14-day Relative Strength Index at 68.89 sits near overbought, signaling strong demand. RSI remains elevated, which could cap gains if overbought conditions emerge.
GBP/USD knocks ten-week highs ahead of holiday slowdown
GBP/USD found room on the high side on Monday, kicking off a holiday-shortened trading week with a fresh spat of Greenback weakness, bolstering the Pound Sterling into its highest bids in ten weeks. Pound traders are largely brushing off the latest interest rate cut from the Bank of England as the UK’s central bank policy strategy leaves the water murky for rate-cut watchers.
Uniswap holds above $6 as traders eye UNIfication vote outcome
Uniswap price holds above $6 at the time of writing on Tuesday after closing above a key resistance zone in the previous week. Traders are focusing on the highly anticipated UNIfication proposal, which is set to conclude on Thursday, and could become a key near-term catalyst. On the technical side, momentum indicators are flashing bullish signals, hinting at an upside rally.
Ten questions that matter going into 2026
2026 may be less about a neat “base case” and more about a regime shift—the market can reprice what matters most (growth, inflation, fiscal, geopolitics, concentration). The biggest trap is false comfort: the same trades can look defensive… right up until they become crowded.
RECOMMENDED LESSONS
Making money in forex is easy if you know how the bankers trade!
I’m often mystified in my educational forex articles why so many traders struggle to make consistent money out of forex trading. The answer has more to do with what they don’t know than what they do know. After working in investment banks for 20 years many of which were as a Chief trader its second knowledge how to extract cash out of the market.
5 Forex News Events You Need To Know
In the fast moving world of currency markets where huge moves can seemingly come from nowhere, it is extremely important for new traders to learn about the various economic indicators and forex news events and releases that shape the markets. Indeed, quickly getting a handle on which data to look out for, what it means, and how to trade it can see new traders quickly become far more profitable and sets up the road to long term success.
Top 10 Chart Patterns Every Trader Should Know
Chart patterns are one of the most effective trading tools for a trader. They are pure price-action, and form on the basis of underlying buying and selling pressure. Chart patterns have a proven track-record, and traders use them to identify continuation or reversal signals, to open positions and identify price targets.
7 Ways to Avoid Forex Scams
The forex industry is recently seeing more and more scams. Here are 7 ways to avoid losing your money in such scams: Forex scams are becoming frequent. Michael Greenberg reports on luxurious expenses, including a submarine bought from the money taken from forex traders. Here’s another report of a forex fraud. So, how can we avoid falling in such forex scams?
What Are the 10 Fatal Mistakes Traders Make
Trading is exciting. Trading is hard. Trading is extremely hard. Some say that it takes more than 10,000 hours to master. Others believe that trading is the way to quick riches. They might be both wrong. What is important to know that no matter how experienced you are, mistakes will be part of the trading process.
The challenge: Timing the market and trader psychology
Successful trading often comes down to timing – entering and exiting trades at the right moments. Yet timing the market is notoriously difficult, largely because human psychology can derail even the best plans. Two powerful emotions in particular – fear and greed – tend to drive trading decisions off course.