Everything you see today – from prices, fluctuations to market sentiment – has happened before. The market, in essence, is just a loop of old cycles.

💡 What causes the market to repeat? Livermore realized that human behavior and emotions – greed, fear, and excitement – are the main reasons that create these cycles. People do not change, and thus, the market does not either. Therefore, instead of trying to seek novelty or predict the "difference" of the current market, smart investors should study history. The lessons from the past are powerful tools that help you predict trends and make wiser decisions in the present. History does not repeat itself exactly, but it always leaves similar traces.