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 recedes to daily lows near 1.1850
EUR/USD keeps its bearish momentum well in place, slipping back to the area of 1.1850 to hit daily lows on Monday. The pair’s continuation of the leg lower comes amid decent gains in the US Dollar in a context of scarce volatility and thin trade conditions due to the inactivity in the US markets.
GBP/USD resumes the downtrend, back to the low-1.3600s
GBP/USD rapidly leaves behind Friday’s decent advance, refocusing on the downside and retreating to the 1.3630 region at the beginning of the week. In the meantime, the British Pound is expected to remain under the microscope ahead of the release of the key UK labour market report on Tuesday.
USD/JPY advances on weak Japanese GDP, holiday-thinned trading
USD/JPY rises while US and Japanese markets remain closed for holidays. Weak Japanese Gross Domestic Product figures curb tightening expectations. Investors await speeches from Federal Reserve Vice Chair for Supervision.
Editors’ Picks
EUR/USD recedes to daily lows near 1.1850
EUR/USD keeps its bearish momentum well in place, slipping back to the area of 1.1850 to hit daily lows on Monday. The pair’s continuation of the leg lower comes amid decent gains in the US Dollar in a context of scarce volatility and thin trade conditions due to the inactivity in the US markets.
GBP/USD resumes the downtrend, back to the low-1.3600s
GBP/USD rapidly leaves behind Friday’s decent advance, refocusing on the downside and retreating to the 1.3630 region at the beginning of the week. In the meantime, the British Pound is expected to remain under the microscope ahead of the release of the key UK labour market report on Tuesday.
Gold corrects lower, tries to stabilize above $5,000
Gold started the week under bearish pressure and declined to the $4,960 area before staging a modest rebound. As trading volumes remain thin with the US financial markets remaining closed on Presidents' Day holiday, XAU/USD looks to stabilize above $5,000 ahead of this week's key data releases.
Bitcoin consolidates as on-chain data show mixed signals
Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.
The week ahead: Key inflation readings and why the AI trade could be overdone
It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.
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