Trading for a Living

Submitted by Share Trading on 23 February, 2010 - 09:52

Trading for a Living is considered a core title in any serious investors library and a great book for beginners, and those wishing to refine their trading methods -- integrates three major areas of trading; psychology, trading tactics and money management into a coherent framework for success. Unique approach combines the author's trading success with his decades of experience as physician and psychiatrist.

You have just taken a big step away from the crowd of amateurs. By opening Trading for a Living, you've resolved to become a successful trader. Dr. Alexander Elder is a professional trader, a world-class expert in technical analysis, and a practising psychiatrist. He believes that successful trading is based on three M's: Mind, Method, and Money. First, you will see that the key to winning is inside your Mind. You will find out how to develop discipline and how to avoid the traps of emotional trading. Second, you will learn how to find good trades by using charts, computerized indicators, and other tools. You will discover how to combine several analytic Methods into a powerful trading system. Finally, you will learn how to manage Money in your trading account. The rules for limiting risks are as vital to a trader as a safety net is to a high-wire walker. With this book, you are on your way to mastering a new way of trading stocks, futures, currencies, and options. Dr. Alexander Elder helps you embark on an intense pursuit - trading for a living.

An eminent futures trader explores crucial factors in the markets that most experts overlook--time, volume and open interest--and describes little-known indicators to profitably track them. Trading for a Living - Psychology Trading Tactics Money Management covers all the popular technical approaches to futures, options and stock markets including Elliott Wave, oscillators, moving averages, Market Logic, point-and-figure charting. Explains why most traders sabotage themselves and how to avoid doing the same.

Successful trading is based on three M's: Mind, Method, and Money. Trading for a Living helps you master all of those three areas:

  • How to become a cool, calm, and collected trader
  • How to profit from reading the behavior of the market crowd
  • How to use a computer to find good trades
  • How to develop a powerful trading system
  • How to find the trades with the best odds of success
  • How to find entry and exit points, set stops, and take profits

Trading for a Living helps you discipline your Mind, shows you the Methods for trading the markets, and shows you how to manage Money in your trading accounts so that no string of losses can kick you out of the game. A hundred-thousand investors have turned to this bestselling guide for mastering successful trading by Dr. Alexander Elder, a professional trader, a world-class expert in technical analysis, and a practicing psychiatrist. He believes that successful trading is based on three M's: Mind, Method, and Money. Trading for a Living helps discipline your Mind, shows you the Methods for trading the markets, and shows you how to manage Money in your trading accounts.

Trading for a Living will help you master:

  • Individual psychology - how to become a disciplined trader
  • Mass psychology - know when to join the crowd and when to leave it
  • Classical charting - identify support and resistance, place stops
  • The neglected essentials - read volume, open interest, and time cycles
  • Psychological indicators -profit from contrary opinion theory
  • Trading systems - learn about the Triple Screen trading system
  • Risk management - all about stops and profit targets

Trading for a Living is a Well Written Trading Book

If somebody bought, read and judged the book by whether it could really help him or her to go "trading for a living", that somebody would definitely be disappointed. Even the author himself pointed out that the success rate for the conversion of ex institutional traders to independent traders was very low owing to the much higher psychological load of trading one's own money than that of trading OPM.
Despite the over-promise of the book title and the second half of it discussing mostly technical tools, the book is quite well written. There are plenty of bright ideas, some with originality that can be attributed to the author's M.D. and psychiatrist background. In particular I like the following points much:-

  • That trading is a minus sum game (considering commission and slippage) and the mass media or gurus or prevalent market view are almost always wrong.
  • The analogy of the market as an ocean and a huge crowd of people, in either case an individual can have no control of but have to follow (or leave) emotionlessly for long term profit.
  • The analogy of Alcoholic Anonymous with Loser Anonymous that requires the same treatment for true recovery, whereas accepting oneself as an alcoholic or a loser is the very first step of healing.
  • The need for discipline and patience as individual traders' only weapon to against institutional traders advantages in faster information, better research reports, lower psychological burden for trading OPM, etc
  • Price is a psychological event, a momentary balance of opinion between bulls and bears, its pattern reflects the mass psychology of the market.
  • Last but not least, the opening prices are determined primarily by amateurs whilst the closing prices are determined by professionals.

In short, the book is well worth the price and I do recommend it to those who study continuously for self improvement in their trading. Remarks:- The author claimed that he personally did so, too.

Trading for a Living is Full of Old Trading Maxims

I tossed my copy of Trading for a Living by Dr Elder in the recycling bin rather than donate it to the library book sale. What a piece of trash this book is. All these old trading maxims and catch phrases are really a lot of hogwash. Save the price of this book and buy a lotto ticket. The risk/reward is better. I've bought a lot of investment books. This really is the worst. The positive reviews here make me seriously question the legitimacy of amazon book reviews.

Author Biography

Alexander Elder, MD, was born in Leningrad and grew up in Estonia where he entered medical school at the age of 16. At 23, while working as a ship's doctor, he escaped from a Soviet ship in Africa and received political asylum in the U.S.A. He continued to work as a psychiatrist in New York City, served as book editor of The Psychiatric Times, and taught at Columbia University. After becoming involved in financial trading, Dr. Elder published over 50 articles, software, and book reviews, and spoke at many conferences. In 1988 he founded Financial Trading Seminars, Inc., an educational firm for traders.

Dr Elder is a professional stock trader, living in New York. He is the author of Trading for a Living, Come Into My Trading Room and Entries & Exits, best-selling and well known among traders. First published in 1993, these books have been translated into Czech, Chinese, Dutch, French, German, Greek, Japanese, Korean, Polish, Portuguese, and Russian. He also wrote Rubles to Dollars - a book about the transformation of Russia.

Table of Contents

    • Trading--The Last Frontier.
    • The Odds Against You.
  1. INDIVIDUAL PSYCHOLOGY.
    • Fantasy Versus Reality.
    • Self-Destructiveness.
    • Trading Lessons from AA.
    • Winners and Losers.
  2. MASS PSYCHOLOGY.
    • What Is the Market?.
    • The Market Crowd and You.
    • Managing Versus Forecasting.
  3. CLASSICAL CHART ANALYSIS.
    • Support and Resistance.
    • Trendlines.
    • Chart Patterns.
  4. COMPUTERIZED TECHNICAL ANALYSIS.
    • Moving Averages.
    • The Directional System.
    • Williams %R.
    • Relative Strength Index.
  5. THE NEGLECTED ESSENTIALS.
    • Volume-Based Indicators.
    • Herrick Payoff Index.
  6. STOCK MARKET INDICATORS.
    • New High-New Low Index.
  7. PSYCHOLOGICAL INDICATORS.
    • Consensus Indicators.
  8. NEW INDICATORS.
    • Elder-Ray.
  9. TRADING SYSTEMS.
    • Triple Screen Trading System.
    • Channel Trading Systems.
  10. RISK MANAGEMENT.
    • Money Management.

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