Day trading demands scientific precision, mental agility, and substantial capital. Like a baker who needs flour, a trader needs enough funds to keep going—and in this realm, timing is critical. It doesn’t just refer to when you enter or exit the market; it also means recognizing days to avoid trading altogether.

Jesse Livermore, hailed by many as history’s greatest trader, famously shorted American stocks before the crash of 1929 and earned over $275 million. Even after partially covering his positions—at the request of the stock exchange president—he rightly predicted any rebound would be brief, and the market continued to tumble for months.

Yet Livermore had equally strong beliefs about when to refrain from trading. His guiding principles still resonate today:

1. Fuel Up Before You Jump In
   Trading on an empty stomach can leave you depleted, especially since your brain, though just 2% of your body weight, devours about 20% of your daily energy. Under intense stress, that figure can triple. A wholesome breakfast ensures your mind is ready to tackle the day’s challenges.

2. Never Trade Blind
   Stay informed about breaking news, economic events, and company updates. Livermore would spend an hour each morning checking telex reports, conversing with brokers, and scanning headlines. Trading without critical information is a recipe for unexpected losses.

3. Sit Out When You’re Sick
   Trading can significantly heighten your heart rate and cortisol levels. When you’re already unwell, those stress responses can accelerate serious health risks. If you’re not feeling 100%, it’s wise to rest and conserve both mental and physical energy.

4. Prepare, Then Pull the Trigger
   Livermore pored over price charts before entering a trade, which helped him maintain conviction when the market temporarily moved against him. Without solid preparation, even small market wobbles can rattle your nerves.

5. Don’t Trade When Emotions Run High
   Anger or sadness can cloud judgment. Livermore refused to trade if he felt upset, acknowledging that a calm, focused mind drives better decision-making. Emotional trades often spiral into regret.