In this video, I’m going to reveal Jesse Livermore’s 21 Trading Rules:
Jesse Livermore was one of Wall Street’s most legendary stock traders. Known as the ‘Boy Plunger’ and the man who famously shorted the market during the 1929 crash, Livermore’s story is a rollercoaster of astronomical success, devastating losses, and timeless lessons for traders.
Livermore was a self-taught trading prodigy who made – and lost – fortunes during some of the most volatile times in market history. Most famously, he made $100 million shorting the market during the 1929 crash. At his peak, Jesse Livermore was worth what would equate to $1.5 billion today. What makes him even more legendary is that Livermore traded on his own, using his own funds, his own system, and not trading anyone else’s capital. Livermore started trading at the age of 14, making his first profit of $3.12 at the age of 15 and $1,000 later at that same age. At age 20, he made $10,000, and then the rest is history…
Now let’s get into Jesse Livermore’s 21 trading rules. These aren’t just rules – they’re a blueprint for navigating the unpredictable world of the stock market. And make sure you listen until the end, because I’ll also share with you Jesse Livermore’s little-known book – published close to 100 years ago – and available again now.
Jesse Livermore’s 21 Trading Rules
Rule #1: Nothing new ever occurs in the business of speculating or investing in securities and commodities.
Rule #2: Money cannot consistently be made trading every day or every week during the year.
Rule #3: Don’t trust your own opinion and back your judgment until the action of the market itself confirms your opinion.
Rule #4: Markets are never wrong – opinions often are.
Rule #5: The real money made in speculating has been in commitments showing in profit right from the start.
Rule #6: As long as a stock is acting right, and the market is right, do not be in a hurry to take profits.
Rule #7: One should never permit speculative ventures to run into investments.
Rule #8: The money lost by speculation alone is small compared with the gigantic sums lost by so-called investors who have let their investments ride.
Rule #9: Never buy a stock because it has had a big decline from its previous high.
Rule #10: Never sell a stock because it seems high-priced.
Rule #11: Become a buyer as soon as a stock makes a new high on its movement after having had a normal reaction.
Rule #12: Never average losses.
Rule #13: The human side of every person is the greatest enemy of the average investor or speculator.
Rule #14: Wishful thinking must be banished.
Rule #15: Big movements take time to develop.
Rule #16: It is not good to be too curious about all the reasons behind price movements.
Rule #17: It is much easier to watch a few than many.
Rule #18: If you cannot make money out of the leading active issues, you are not going to make money out of the stock market as a whole.
Rule #19: The leaders of today may not be the leaders of two years from now.
Rule #20: Do not become completely bearish or bullish on the whole market because one stock in some particular group has plainly reversed its course from the general trend.
Rule #21: Few people ever make money on tips. Beware of inside information. If there was easy money lying around, no one would be forcing it into your pocket.
And there you have it – Jesse Livermore’s 21 trading rules, each one offering a wealth of wisdom that still holds true today. From managing your emotions to staying disciplined, these rules go beyond just trading strategies – they’re about developing a mindset for long-term success.
But remember, Livermore’s life was also a cautionary tale. Even with all his knowledge, he struggled with the emotional and psychological pressures of trading, which ultimately led to his tragic death. Let his lessons guide you, but also remember the importance of balance and mental health in your own journey.
Like I mentioned earlier, it’s not very well known, but Jesse Livermore is the author of a book called “How to Trade in Stocks“, published in 1940 – almost 100 years ago.
Robin R. Speziale 
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