Trading for a Living: Psychology, Trading Tactics, Money Management

Trading for a Living: Psychology, Trading Tactics, Money Management
Trading for a Living 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. To help you profit even more from the ideas in Trading for a Living, look for the companion volume—Study Guide for Trading for a Living. It asks over 200 multiple-choice questions, with answers and 11 rating scales for sharpening your trading skills. For example: Question Markets rise when

1. there are more buyers than sellers
2. buyers are more aggressive than sellers
3. sellers are afraid and demand a premium
4. more shares or contracts are bought than sold

1. I and II
2. II and III
3. II and IV
4. III and IV

Answer B. II and III. Every change in price reflects what happens in the battle between bulls and bears. Markets rise when bulls feel more strongly than bears. They rally when buyers are confident and sellers demand a premium for participating in the game that is going against them. There is a buyer and a seller behind every transaction. The number of stocks or futures bought and sold is equal by definition.

Customer Review: This book Changed the way I trade

After suffering a loss due to 'Unreasonable Exuberance' in 1997, I was about to quit market. I borrowed this book from library and from the very first page I felt as if Mr. Elder had written my trading biography. This book was a retrospect on my trading psychology/habit and realized my wrong approach to market. I read this book couple of time so that I fully register Mr. Elder's teaching and started trading again. It has been 9 years, I read this book, once every year just to make sure I do not deviate from my trading discipline. Every trader once in his trading life must read this book.

Customer Review: One of the most useful books to get your ready for trading

Trading is a very special business. The environment traders are working in is filled with confusing or even directly conflicting information, greed and aggression. It is a very stressful place and a lot of smart and rational people lose money because they are just not ready psychologically.



This books does a great job preparing you psychologically. First, it explains you what groups of people are involved and what their intentions are. Second, it describes what traders feel, how they should manage their emotions and stay rational and what they should try to avoid. This part is really great. The author is right on and you can skip years of painful mistakes if you follow his advices. Finally, the author reviews some trading strategies. This infomation is useful, but most of them are well described in other sources, so this is not the strongest point of this book.



Overall, it's one the best books about the psychological aspects of trading and it's highly highly recommended.