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 eases toward 1.1700 as USD finds fresh demand
EUR/USD eases toward the 1.1700 mark in early Europe on Friday. The pair faces headwinds from a renewed uptick in the US Dollar as investors look past softer US inflation data. However, the EUR/USD downside appears capped by expectations of Fed-ECB monetary policy divergence.
GBP/USD steadies below 1.3400 as traders digest BoE policy update and US inflation data
The GBP/USD pair stalls the previous day's pullback from the vicinity of mid-1.3400s and a nearly two-month high, though it struggles to attract meaningful buyers during the Asian session on Friday. Spot prices currently trade around the 1.3380-1.3385 region, up only 0.05% for the day, amid mixed cues.
USD/JPY extends gains above 156.00 after BoJ
USD/JPY sees a fresh leg higher and regains the 156.00 level on Friday. The Japanese Yen struggles to attract buyers even after BoJ Governor Ueda noted that they rate hikes will continue if economy develops as per projections, while the US Dollar clings to recovery gains, allowing the pair to hold its ground.
Editors’ Picks
EUR/USD eases toward 1.1700 as USD finds fresh demand
EUR/USD eases toward the 1.1700 mark in early Europe on Friday. The pair faces headwinds from a renewed uptick in the US Dollar as investors look past softer US inflation data. However, the EUR/USD downside appears capped by expectations of Fed-ECB monetary policy divergence.
USD/JPY extends gains above 156.00 after BoJ
USD/JPY sees a fresh leg higher and regains the 156.00 level on Friday. The Japanese Yen struggles to attract buyers even after BoJ Governor Ueda noted that they rate hikes will continue if economy develops as per projections, while the US Dollar clings to recovery gains, allowing the pair to hold its ground.
Gold seems vulnerable as USD bulls shrug off softer US CPI
Gold extends the previous day's late pullback from the vicinity of the record high and attracts some follow-through selling during the Asian session on Friday. The US CPI report released on Thursday pointed to cooling of inflationary pressure.
Bitcoin, Ethereum and Ripple correction slide as BoJ rate decision weighs on sentiment
Bitcoin, Ethereum, and Ripple are extending their correction phases after losing nearly 3%, 8%, and 10%, respectively, through Friday. The pullback phase is further strengthened as the upcoming Bank of Japan’s rate decision on Friday weighs on risk sentiment, with BTC breaking key support, ETH deepening weekly losses, and XRP sliding to multi-month lows.
Bank of England cuts rates in heavily divided decision
The Bank of England has cut rates to 3.75%, but the decision was more hawkish than expected, leaving market rates higher and sterling slightly stronger. It's a close call whether the Bank cuts again in February or March.
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.