Jesse Livermore’s Top Trading Tips: Timeless Rules for Market Success

Jesse Livermore, one of the greatest traders in history, made and lost fortunes in the early 20th century stock market. His legendary trades, including predicting the 1929 market crash, have cemented his place in trading history. But what made Livermore successful? It was his strict adherence to a set of trading rules, developed through years of experience.

In this article, we will break down Livermore’s key trading principles with real-world examples, making them easy to understand and apply.

1. The Trend Is Your Friend

Livermore’s Rule:

“There is nothing new in Wall Street. There can’t be because speculation is as old as the hills.”

Livermore believed that markets move in trends, and successful traders should follow them rather than fight them. He emphasized the importance of waiting for a confirmed trend before taking a position.

Real-World Example:

Imagine you are trading Tesla (TSLA). The stock has been on an upward trend for weeks, continuously making higher highs and higher lows. Instead of shorting it because “it looks overbought,” Livermore would wait for a clear signal that the trend has reversed before considering a short…