RSI 70 = SELL? WRONG! 3 Hidden Strategies Pros Use Instead

Listen closely, trader.

There's a number on your chart right now

bouncing between 0 and 100 that 97% of

traders are reading completely wrong.

They see it flash 70 and they sell. They

see it flash 30 and they buy and they

lose again and again and again and

again.

But what if I told you that this very

same indicator, the Relative Strength

Index, built fortunes for the men who

knew its true secret? What if the three

strategies I'm about to share with you

today are the same hidden patterns that

separate the consistent winners from the

desperate gamblers in this game? Stay

with me for the next 35 minutes because

what you're about to learn could very

well change the way you read a market

for the rest of your trading life. But

before we dive into the meat of today's

lesson, I want you to do something for

me. Look down in the description of this

video. You'll see two resources I've

prepared specifically for traders who

are serious about transforming their

results.

The first is my ebook, Thinking Like

Jesse Livermore: Mastering the Market

with Discipline, Patience, and Risk.

This isn't a get-rich-quick pamphlet.

This is the distilled wisdom of a

lifetime spent in the pits, the bucket

shops, and the boardrooms of Wall

Street. It's the mindset that turned $5

into $100 during the crash of 1929.

The second is The Livermore Journal, a

90-day trading psychology workbook

because here's the truth, my friend,

knowing strategies is only half the

battle. The other half? It's between

your ears. This workbook will rewire

your trading psychology in 90 days, page

by page, trade by trade. Both links are

waiting for you in the description

below. Grab them now because you'll want

them by your side as we go through

today's strategies. Now, let's talk

about RSI. Pull up a chair, trader. Let

me tell you a story.

Back in my day, we didn't have

computers. We didn't have flashing green

and red bars dancing across a screen.

We had ticker tape, chalkboards, and the

most powerful tool any speculator ever

owned, our own observation.

We watched price.

We watched volume.

We watched human behavior repeat itself

hour after hour, year after year.

And the men who understood that

behavior, they prospered. The men who

didn't, they fed the market.

Now, fast forward to your modern age.

You have an indicator called the

Relative Strength Index. It was

developed by a fellow named J. Welles

Wilder in 1978, a mechanical engineer

turned trader.

He created this indicator to measure

something very specific, the speed and

the change of price movements, the

momentum, if you will, of a stock or a

currency or a commodity.

The RSI runs on a scale from 0 to 100.

And from the very beginning, traders

were taught two simple rules. When the

RSI crosses above 70, the asset is

overbought and you should sell.

When the RSI crosses below 30, the asset

is oversold and you should buy.

Simple, isn't it?

Too simple.

And that, my friend, is precisely why

97% of retail traders lose money using

this indicator.

Because they treat it like a magic eight

ball.

They shake the chart, they wait for a

signal, and they take it without

thought, without context, without

confluence.

Let me explain something to you that I

learned in my 40 years of speculating,

markets are not mechanical.

They are emotional. They are driven by

fear and by greed, by hope and by

despair.

And no single indicator, no matter how

mathematically elegant, can capture the

full picture of human behavior on its

own.

When you see RSI reading 70, what does

it actually mean?

It means the recent upward price

movement has been strong relative to the

recent downward price movement over a

defined period, usually 14 sessions.

That's it. It doesn't mean the price is

going to reverse. It doesn't mean the

trend is exhausted. It doesn't mean you

should sell.

In fact, here's a secret most traders

never learn in a strong trending market.

The RSI can stay above 70 for weeks,

sometimes months.

I've seen great bull moves where the RSI

was pinned above 80 for the entire ride.

The trader who shorted at 70 was wiped

out. The trader who held the long

position to 90 made a fortune.

This is the first illusion you must

shatter. RSI is not a reversal

indicator. It is a momentum indicator.

And momentum in a strong trend is your

friend, not your enemy.

Let me give you a real-world example.

Imagine a stock breaking out of a long

base. Volume is expanding. Institutions

are accumulating. The price begins to

rip higher.

Within a week, the RSI hits 70. The

amateur trader sees this and shorts.

Why? Because his textbook told him to.

Within 3 days, the stock is up another

15%.

The RSI is now at 85. The amateur gets

stopped out. Or worse, he averages down.

By the time the stock finally cools off,

he's down 40% on his account.

Meanwhile, the professional trader, the

one who understands what RSI actually

measures, that trader is riding the

move. He recognizes that an RSI of 70 in

a strong uptrend is not a sell signal.

It's a confirmation of trend strength.

He's not looking for reversals. He's

looking for continuation patterns,

pullbacks, consolidations within the

trend.

Opportunities to add to his winning

position.

Do you see the difference? It's not the

indicator that's wrong, it's the

interpretation.

Now, here's another secret. The standard

14-period setting for RSI is not sacred.

It's simply what Wilder chose because it

worked reasonably well across multiple

markets and time frames back in 1978,

but markets have changed. Liquidity has

changed. Volatility profiles have

changed.

Many of the most consistent traders I've

studied today use different RSI periods

depending on their style. Scalpers may

use a nine-period RSI for faster

signals.

Swing traders might use a 21-period RSI

to filter out noise. Position traders

might combine multiple RSI periods on

the same chart to gauge momentum across

different time frames. There's no single

correct setting.

There's only the setting that fits your

strategy, your time frame, and your

psychology.

The second great illusion of RSI is that

it works in isolation.

Let me be clear with you, no indicator

works in isolation. None. Not RSI, not

MACD, not Bollinger Bands.

Not the moving averages I'm sure you've

memorized by now. Indicators are tools.

They are not strategies. A hammer

doesn't build a house. A carpenter does.

And a carpenter uses many tools in

concert to build something of value.

In the same way, you must learn to use

RSI in concert with price action, with

volume, with market structure, and with

the broader context of the market

environment.

Is the overall market in a bull phase or

a bear phase?

What is the sector doing?

What is the trend on the higher time

frame?

These questions matter far more than

whether RSI is at 68 or 72.

The third illusion, and perhaps the most

dangerous one, is that RSI signals are

equally valid in all market conditions.

They are not. RSI works beautifully in

certain types of markets and miserably

in others.

In a strong trending market, traditional

overbought and oversold signals will

destroy your account. In a ranging

market, those same signals can be highly

profitable.

The skill of the master trader is not in

knowing the indicator, it's in knowing

when the indicator applies.

So, as we move into the three advanced

strategies I'm about to share with you,

I want you to release everything you

thought you knew about RSI. Forget 70

and 30 as automatic triggers.

Forget the textbook signals. Forget what

every guru on the internet has told you.

We're about to go deeper. We're about to

look at RSI the way a professional

speculator looks at it as a window into

the soul of the market, as a way to

measure not just momentum, but

conviction.

Not just price change, but the

psychology behind the price change.

Because at the end of the day, the

markets are made of people.

And people are predictable in their

unpredictability.

The same patterns that played out in 19

07, in 1929,

in 1987,

in 2008, in 2020,

those same patterns are playing out

today. The tools have changed. The names

have changed.

But human nature,

my friend, human nature has not changed

one bit.

And that's why the three strategies I'm

about to teach you have stood the test

of time.

They are not based on mathematical hocus

pocus.

They are based on human behavior.

On the way fear and greed move through a

market like a tide. On the way smart

money accumulates and distributes while

the public chases and panics.

Are you ready? Then let's begin with the

first strategy, and I promise you, this

one alone, if applied with discipline,

can transform your trading. The first

advanced strategy I want to share with

you today is RSI divergence, but not the

way the textbooks teach it.

I'm going to show you how to combine RSI

divergence with structural confirmation

to create one of the most powerful

reversal signals in all of technical

analysis.

Let me start with the basics, briefly,

for those who may be new. RSI divergence

occurs when the price of an asset moves

in one direction, but the RSI moves in

the opposite direction.

There are two main types, bullish

divergence and bearish divergence.

Bullish divergence happens when price

makes a lower low, but RSI makes a

higher low.

This suggests that even though the price

is falling, the momentum behind the

decline is weakening.

The bears are getting tired.

The selling pressure is fading.

A reversal may be approaching.

Bearish divergence is the mirror image.

Price makes a higher high, but RSI makes

a lower high. The price keeps climbing,

but the momentum is fading. The buying

pressure is exhausting.

The bulls are losing their grip. A

reversal may be approaching.

Now, here's where most traders go wrong.

They see a divergence form on the chart,

and they immediately enter a trade.

Boom, they short the bearish divergence.

Boom, they buy the bullish divergence.

And nine times out of 10, the market

keeps moving in the original direction,

takes them out at a loss, and then

finally reverses without them.

Why does this happen? Because divergence

alone is not enough.

Listen to me carefully.

Divergence is a warning. It is not a

signal. It tells you that the current

trend is losing steam, but losing steam

does not mean reversing.

A car can coast for a long time after

the engine stops. A market can grind

higher long after the buying momentum

has peaked. The professional speculator

does not trade divergence in isolation.

He waits for structural confirmation.

And that is what I'm going to teach you

right now.

Here is the four-step process for

trading RSI divergence with structural

confirmation.

Step one, identify the divergence on a

meaningful time frame. I'm not talking

about a 5-minute chart unless you're a

scalper with iron discipline.

I'm talking about the 4-hour, the daily,

or the weekly chart. Divergences on

higher time frames carry far more weight

than divergences on lower time frames.

They represent a broader shift in market

sentiment. A bearish divergence on a

daily chart is worth 100 bearish

divergences on a 1-minute chart.

Step two, wait for the swing structure

to break.

This is the part that almost no one

teaches.

After you spot the divergence, you must

wait for the underlying market structure

to break before entering.

What does that mean? It means waiting

for the price to break below the most

recent swing low in the case of a

bearish divergence or above the most

recent swing high in the case of a

bullish divergence.

This break of structure is your

confirmation that the trend has actually

reversed, not just pulled. Step three,

wait for the retest.

After a structure breaks, the market

often pulls back to retest the broken

level.

This is where the smart money enters.

Not on the initial break, that's where

the amateurs jump in and get whipsawed.

The retest gives you a much better entry

price, a tighter stop loss, and a higher

probability of success.

Step four, enter with a defined risk and

a defined reward. Place your stop loss

just beyond the most recent swing high

or low.

Target the next major structural level,

a previous support or resistance zone, a

Fibonacci extension, or a key moving

average. Always know your reward to risk

ratio before you enter.

I will not take a trade with less than a

two to one reward to risk ratio.

Three to one is better. Five to one is

glorious.

Let me walk you through a real example

so you can see this in action.

Imagine a stock that has been in a

strong uptrend for 6 months.

It's been climbing higher and higher,

making new highs almost every week.

The RSI has been bouncing between 40 and

80, confirming the strength of the

trend.

Then one day, the stock makes a new

high. Let's say it climbs from $100 to

$120 over the course of 3 weeks.

But when you look at the RSI, you notice

something interesting.

On the previous high, the RSI was at 85.

On this new high, the RSI is only at 72.

That's a bearish divergence.

Does the professional trader immediately

short the stock? No, he waits.

He marks the most recent swing low.

Let's say it was at $112.

Then he watches and waits.

Over the next 2 weeks, the stock pulls

back to $115,

then bounces to $118,

then falls again, and this time it

breaks below $112.

The swing low is broken. The structure

has shifted. Now the professional is

interested. He waits for the retest.

Sure enough, the stock rallies back up

to test the $112 level, which now acts

as resistance.

The stock rejects this level. It can't

get back above it.

Now the professional enters short. His

stop loss is at $115,

just above the most recent swing high

during the retest.

His target is the next major support

level, let's say $100. That's a 3:1

reward-to-risk trade.

And the probability of success is much

higher than if he had shorted at the

first sign of divergence.

That is how a professional uses RSI

divergence, not as a magic signal, but

as a piece of a larger puzzle.

Now, I want to share with you something

even more powerful.

When you combine RSI divergence with

what I call key levels, historical

support and resistance zones, major

round numbers,

previous all-time highs or lows, the

probability of success increases

dramatically.

Why? Because at these key levels, you

have the maximum amount of market

participation.

You have buyers who bought at this level

years ago and are now finally getting

back to break even, they sell.

You have stop losses clustered above and

below these levels, they get triggered.

You have algorithmic traders programmed

to react to these levels, they execute.

The volume explodes, the volatility

spikes.

And if you have a divergence forming at

a key level with a structural break and

a clean retest, you have one of the most

asymmetric opportunities the market can

offer.

Let me give you one more piece of wisdom

on this strategy.

Patience is everything. You may go weeks

without seeing a setup that meets all

four criteria.

That is not a problem. That is a

feature.

The fewer trades you take, the more

selective you become, the higher your

win rate will be.

I would rather take 10 high-quality

trades per year and make 30% than take

500 mediocre trades per year and lose

10%.

The market will always be there. The

opportunities will always come. Your job

is not to catch every move. Your job is

to catch the right moves and to size

them properly and to manage them with

discipline.

This is exactly the kind of disciplined,

patient mindset I write about

extensively in my ebook, Thinking Like

Jesse Livermore: Mastering the Market

with Discipline, Patience,

and Risk.

If this strategy resonates with you,

that book will deepen your understanding

tenfold. The link is in the description

below.

Now, let us move on to the second

strategy and this one, my friend, is

where the real money is made. The second

advanced strategy I want to teach you

today is one that most retail traders

have never even heard of. It's called

the RSI 50 line trend continuation

strategy.

And once you understand this concept,

you will never look at the RSI indicator

the same way again.

Most traders fixate on the 70 and 30

levels, overbought, oversold, buy, sell,

as if the entire indicator can be

reduced to two horizontal lines on a

chart.

But the real magic of the RSI, the part

that the professionals use and the

amateurs ignore, happens at the 50

level. The middle of the indicator.

The dividing line between bullish

momentum and bearish momentum.

Let me explain why this level is so

important. The RSI is essentially a

measure of buying pressure versus

selling pressure over a defined period.

When RSI is above 50, it means buying

pressure has been stronger than selling

pressure.

When RSI is below 50, it means selling

pressure has been stronger than buying

pressure.

The 50 level is the equilibrium point,

the boundary between bull territory and

bear territory.

Now, here is the secret. In a strong

uptrend, RSI rarely drops below 50. It

will fluctuate between 50 and 80,

bouncing off the 50 line like a

basketball off a hardwood floor.

Every time it touches 50 and bounces,

that is a high probability buying

opportunity. The trend is intact. The

momentum has cooled. The pullback is

providing a fresh entry.

In a strong downtrend, the opposite is

true. RSI rarely climbs above 50. It

fluctuates between 50 and 20.

Every time it bounces off 50 to the

downside, that is a high probability

shorting opportunity.

This is the foundation of the RSI 50

line trend continuation strategy.

You're not trying to catch reversals.

You're trying to ride trends. And the 50

line is your entry signal.

Let me walk you through the precise

steps.

Step one, identify the trend. Before you

can trade trend continuations, you must

first establish that a trend exists.

There are many ways to do this.

You can use moving averages, for

example. If the price is above the

200-day moving average and the 50-day

moving average is sloping upward, you

have an uptrend.

You can use higher highs and higher

lows. If the price is consistently

making higher highs and higher lows over

your chosen time frame, you have an

uptrend. You can use the slope of a

trend line.

You can use the directional movement

index. Whatever method you use, be

consistent and be rigorous.

Step two, confirm the trend with RSI

behavior. This is where it gets

interesting. Once you've identified the

trend, look back at how the RSI has been

behaving.

In a strong uptrend, you should see the

RSI consistently making higher lows on

the indicator itself, and those lows

should be bouncing off or above the 50

line.

If the RSI has been respecting 50 as

support during the uptrend, you have a

confirmed RSI trend.

Step three, wait for the pullback.

Markets do not move in straight lines.

Every trend has its corrections. Every

advance has its retreats. Your job is to

wait patiently for the pullback.

As the price corrects, the RSI will drop

from its higher reading, perhaps from 75

down toward 50. Do not anticipate. Do

not enter early. Let the pullback play

out.

Step four, enter on the bounce from 50.

When the RSI approaches the 50 line and

then turns back up, that is your entry

signal.

You're entering on a pullback in a

confirmed uptrend with momentum about to

resume.

This is the highest probability entry in

trend trading.

Step five, manage the trade with

structural stops and trailing exits.

Place your initial stop loss below the

most recent swing low in price. As the

trade moves in your favor, trail your

stop using either a moving average, the

most recent swing low, or a percentage

based trailing stop. Let the trend run.

Do not cut your winners short. Most

traders fail not because they don't

catch good trades, but because they exit

good trades too early.

Now I want to share with you a

sophisticated variation of this strategy

that the professionals use.

It's called the RSI 50 line failure

swing. Here's how it works. In a strong

uptrend, RSI bounces off 50

consistently.

But every now and then, the RSI will dip

slightly below 50, maybe to 45 or 48

before bouncing back above.

This temporary failure to hold 50 is

actually one of the most powerful

continuation signals in the entire

indicator.

Why? Because it shakes out the weak

hands. The traders who were watching the

50 line as support get nervous when it

breaks. They sell. They panic. And then

the price reverses and rips higher,

leaving them stranded on the sidelines

while the smart money loads up. When you

see the RSI dip below 50 in a strong

uptrend and then quickly recover, that

is not a sign of weakness. That is a

sign of strength. The market is testing

its own resolve and passing the test.

The professional uses this dip as an

opportunity to add to his position at a

discount. Of course, you must combine

this with price action. If the RSI dips

below 50 and the price also breaks a

major support level with high volume,

that's a different story that may be the

beginning of a true trend reversal.

Always look at the indicator in the

context of the price. Always.

Let me give you another example. Imagine

a currency pair that's been in a clear

uptrend for 2 months. It's making higher

highs and higher lows. The 50-day moving

average is sloping upward.

Price is well above the 200-day moving

average. The RSI has been ranging

between 50 and 75, bouncing off 53 times

in the past 2 months.

Each time it bounced, the price rallied

to a new high. This is a textbook RSI 50

line trend.

Now you see the price beginning to

correct. It's coming down from a recent

high. The RSI is dropping 65, 60, 55,

50.

You watch and wait.

The RSI touches 50 and turns up.

You check the price action. There's a

bullish candlestick forming at a key

support level.

You enter long.

Your stop loss is below the recent swing

low.

Your target is the next resistance level

above, or you simply trail your stop and

let the trend run.

This is methodical. This is patient.

This is professional.

The beauty of the RSI 50 line strategy

is that it keeps you on the right side

of the trend. It prevents you from

picking tops in uptrends and bottoms in

downtrends, which is what destroys most

retail traders.

It aligns you with the dominant flow of

capital.

And it gives you clear, objective entry

and exit criteria.

Now, I want to give you one final pearl

of wisdom on this strategy.

The RSI 50 line works on every time

frame.

It works on the 5-minute chart for day

traders.

It works on the daily chart for swing

traders. It works on the weekly chart

for position traders.

The principles are identical.

Only the time frame changes.

So, whatever your style of trading, you

can adapt this strategy to your needs.

But, and this is critical, you must

maintain consistency in your time frame.

Don't switch between the daily chart and

the 4-hour chart based on which one is

giving you the signal you want. That's

called chart shopping, and it's the

death of consistent trading. Pick your

time frame, master it, stick to it.

This level of discipline, choosing one

time frame, mastering one strategy,

sticking with it through thick and thin,

that is the kind of psychological work I

cover in detail in the Livermore

Journal,

a 90-day trading psychology workbook. If

you're serious about building

discipline, that journal will be your

daily companion. The link is in the

description below.

All right, two strategies down, one to

go.

And I've saved the most powerful one for

last. The third and final strategy I

want to share with you today is the most

advanced of the three. It is the

multi-time frame RSI confluence system.

This is the strategy that separates the

amateurs from the professionals.

This is what allows you to enter trades

with a level of confidence that most

traders will never experience in their

entire careers.

Here is the core idea. Most traders look

at one time frame. They pick the daily

chart or the 4-hour chart or the 1-hour

chart, and they make all their decisions

based on that single view.

But the market is fractal. It exists on

multiple time frames simultaneously. The

daily trend is built out of the 4-hour

trends. The 4-hour trends are built out

of the 1-hour trends,

and so on down to the tick.

The professional trader understands that

a trade has a much higher probability of

success when multiple time frames are

aligned.

When the weekly RSI, the daily RSI, and

the 4-hour RSI are all telling the same

story, you have what I call confluence,

and confluence is the holy grail of

consistent profitability.

Let me show you how to construct this

system.

Step one, choose three time frames. You

need three time frames that are related

but distinct. A common combination is

the weekly, the daily, and the 4-hour.

Another is the daily, the 4-hour, and

the 1-hour.

Another is the 4-hour, the 1-hour, and

the 15-minute. The principle is the

same. You have a higher time frame to

establish the dominant trend, a middle

time frame to identify the setup, and a

lower time frame to time the entry.

Step two, define the trend on the

highest time frame using RSI. This is

your anchor. If the weekly RSI is above

50 and trending upward, your bias is

bullish.

You will only take long trades on the

lower time frames.

If the weekly RSI is below 50 and

trending downward, your bias is bearish.

You will only take short trades on the

lower time frames.

This single rule will eliminate 80% of

the bad trades you would otherwise take.

It forces you to align with the dominant

force in the market.

Step three, identify the setup on the

middle time frame.

Once you know your bias from the highest

time frame, you go to the middle time

frame and look for a setup. This could

be a divergence, a bounce off the 50

line, an oversold or overbought reading

at a key level, whatever your preferred

setup is. The setup must be aligned with

the bias from the highest time frame.

If your weekly bias is bullish, you're

looking for bullish setups on the daily

bullish divergences, 50 line bounces,

oversold conditions at support.

Step four, time the entry on the lowest

time frame. This is where the precision

comes in.

Once you have your bias from the highest

time frame and your setup from the

middle time frame, you drop down to the

lowest time frame to find the precise

entry.

You're looking for a confirmation

candle,

a momentum shift, an RSI cross above or

below 50 on the lower time frame. This

precise timing allows you to enter with

a much tighter stop loss, which

dramatically improves your reward to

risk ratio. Let me give you a concrete

example. You're trading a stock. You

look at the weekly chart first. The RSI

is at 58 and has been trending upward

for 3 months. Bullish bias confirmed.

You move to the daily chart. You see the

price has been pulling back over the

past 2 weeks. The daily RSI has come

down from 75 to 52 and is now bouncing

right off the 50 line.

There's a clear bullish setup forming.

The RSI is turning up from 50. The price

is sitting on a major support level and

there's a bullish engulfing candle

forming on the daily.

Now you move to the 4-hour chart. You're

looking for the precise entry. You watch

as the 4-hour RSI dips into oversold

territory at 28 and then begins to climb

back.

As soon as the 4-hour RSI crosses back

above 40 with bullish price action

confirming, you enter long. Your stop

loss is below the most recent 4-hour

swing low, a very tight stop. Your

target is the previous daily high or

even higher if the weekly trend

continues.

Do you see the elegance of this?

Three time frames. Three confirmations.

One precise entry.

Tight risk.

Massive potential reward. This is the

kind of trade that professional

speculators take. They wait. They

observe. They demand multiple

confirmations before they commit

capital.

And when they finally do enter, they do

so with conviction because everything is

aligned.

Now I want to give you a few additional

principles that will make this

multi-timeframe system even more

powerful.

First, never trade against the highest

time frame ever.

If the weekly RSI is below 50, do not

take long trades, no matter how tempting

the daily setup looks.

Countertrend trading is a graveyard for

retail traders. The professionals trade

with the trend. So should you. Second,

when the lower time frames diverge from

the higher time frames, sit on your

hands.

If your weekly bias is bullish, but your

daily RSI is breaking down below 50,

that's a warning.

Wait for clarity. The market is in

transition. Do not force a trade.

Third, use position sizing to manage

your risk.

Even with the best multi-time frame

setup, you must never risk more than 1

to 2% of your account on any single

trade. Why?

Because no setup is 100%. Even the

highest probability trade can fail, and

if you're sizing too large, one bad

trade can wipe out months of careful

profits. Risk management is not

optional.

It is the bedrock of consistent

profitability.

Fourth,

keep a journal. Every trade you take,

every setup you observe, every emotion

you feel, write it down. Review it

weekly. Review it monthly.

Pattern recognition is built through

deliberate practice and reflection.

The journal is your laboratory.

It is where you become a master of your

craft.

This is precisely why I created the

Livermore Journal, a 90-day trading

psychology workbook to give you a

structured framework for this essential

practice.

Link in the description.

My friend,

we have covered a tremendous amount of

ground today.

Three advanced RSI strategies:

divergence with structural confirmation,

the 50-line trend continuation, and the

multi-time frame confluence system. Each

one of these strategies, applied with

discipline and patience, can transform

your trading.

But let me leave you with one final

thought. The strategies I have shared

with you today are not magic. They are

not guarantees. They are tools.

And like all tools, they only work in

the hands of a skilled craftsman. The

skill is built over years through study,

through practice, through making

mistakes and learning from them.

Through losing money and discovering

why, through winning money and remaining

humble.

The greatest enemy of every trader is

not the market. It is himself. It is his

impatience, his greed, his fear, his

ego.

The market will reward those who master

themselves, and it will punish those who

do not. There are no exceptions to this

law.

If you take nothing else from today's

lesson, take this, your strategies will

only ever be as good as your discipline.

Your indicators will only ever be as

accurate as your psychology.

Your account will only ever grow as much

as your character allows.

This is why I have written Thinking Like

Jesse Livermore: Mastering the Market

with Discipline, Patience, and Risk,

because the inner game is the real game.

And it's why I created the Livermore

Journal, a 90-day trading psychology

workbook, to give you a daily practice

that builds the mindset of a master

speculator over 90 transformative days.

Both ebooks are linked in the

description below.

Take them, study them, live them.

Now, before you go, if you found value

in today's video, do me one small favor.

Smash that like button.

It costs you nothing, and it tells the

algorithm to share this wisdom with more

traders who need it.

Then hit that subscribe button and ring

the bell, because we release new videos

every week here at the Jesse Livermore

Trading Code videos on market

psychology, technical analysis, money

management, and the timeless principles

that have separated winners from losers

for over a century.

Coming up next, I'll be revealing the

seven trading rules that I followed

religiously throughout my entire career,

rules that, when broken, cost me

fortunes, and when followed, made them.

You will not want to miss it.

Until then, my friend, trade with

discipline, trade with patience, and

remember the market does not care about

your hopes, your dreams, or your bills

to pay.

It only respects those who respect it.

The trading code is yours to crack.

I'll see you in the next video.