Whatever happens in the stock market today has happened before and will happen again.”“There are times when money can be made investing and speculating in stocks, but money cannot consistently be made trading every day or every week during the year. They see that their trade is losing money, but they still believe that they’re right, so they buy more and try and reduce their cost base. Once the real move starts, and the big trend kicks in you can make the large profits extremely quickly and easily.This is another problem that many traders have. His progress from office boy to Wall Street legend – his trading lessons – his triumphs and disasters – is probably the most fascinating of any of Wall Street’s stories.Even today, many stock and commodity traders owe Jesse Livermore a deep debt of gratitude for sharing his experiences. For some, the suggestions and ideas on this page may appear too simplistic.But personally, I don’t believe this to be the case. There’s a good reason for that, because you’re often buying into strength or selling into weakness. It’s not easy to estimate but in today’s money, that would be worth somewhere between $1-14 billion.But Jesse didn’t earn that money trading other people’s funds. Most people who speculate hound the brokerage offices… the ticker is always on their minds. During these times, the market range can narrow, price action can get choppy. The book is regarded as an essential read by such well known financiers as Ed Seykota, Paul Tudor Jones, and even former Fed Chairman Alan Greenspan.Over the course of this guide we will look at Jesse’s best trading rules (as detailed in the famous book) and we will get right to the heart and strategy of the master trader.What Jesse means is that the same market moves and patterns occur over and over again. During these periods people become curious about making money, they become greedy and complacent. Jesse Livermore kept betting too large on his unfair coin, hence the nickname “boy plunger.” The deck was stacked in his favor but he lacked the bankroll management to successfully realize his edge over the long haul. You’ve got these tiny trading ranges, these small bars where there just isn’t enough price movement to make a profit.When you trade these quiet days, it can be really frustrating because you’ll end up buying a breakout, selling a breakout but just getting chopped up.So on days like these, when you think it’s going to be a quiet day in terms of trading, maybe there isn’t anything on the calendar, or maybe Europe is on holiday, then you want to really scale back your profit targets. Data errors and mistakes do occur. This is the trend following mantra. Time Magazine described Jesse Livermore as the most fabulous living U.S. stock trader. Next time we might well see a situation where the US dollar goes down as well.But the key point is to know the type of market you’re in. So again, successful traders must ignore their human impulses to trade too much or all the time.Overall, if you have problems with this third component, psychology, you will find it hard in the markets. You can watch them, plan your trade and wait for an explosive breakout.There are many traders who take out their losses and negative emotions on the market itself, which, when looked at objectively, is ridiculous.Traders treat the market as if it is human, as if it has a personality. Never follow tips or rely on anyone else to do your trading for you.Jesse Livermore’s biggest mistakes, the ones that caused him to lose thousands and millions of dollars in profits, did not come from taking the wrong trades or from taking small losses, they came from not taking a loss when it was still small.In other words, by leaving the loss and not cutting it short, the loss was able to grow and grow, until it was too big and too painful to let go of. And one way to do that would be study the effects of behavioural finance, amongst other things.In the book, Jesse Livermore spoke a bit about a professional gambler called Pat Hearne.Pat would treat the markets like a roulette or blackjack game and make a series of calculated bets looking for small, sure wins. A broker, for example, wants you to trade as often as possible.