The new trading for a living

"The New Trading for a Living" is a popular book written by Alexander Elder, a renowned trader and market analyst. The book was first published in 1993 and has since become a classic in the trading community.

The book's main focus is on providing a comprehensive guide to trading, covering topics such as:

  1. Trading psychology: Elder emphasizes the importance of understanding one's own emotions, biases, and psychological limitations in trading.
  2. Market analysis: He provides an in-depth look at various market analysis techniques, including technical analysis, fundamental analysis, and sentiment analysis.
  3. Trading strategies: The book covers a range of trading strategies, including trend following, range trading, and breakout trading.
  4. Risk management: Elder stresses the importance of proper risk management, including position sizing, stop-losses, and diversification.
  5. Trading discipline: He emphasizes the need for discipline and consistency in trading, including the importance of sticking to a trading plan and avoiding impulsive decisions.

Some of the key concepts and ideas presented in the book include:

  1. The Three Components of Trading: Elder identifies three essential components of trading: 1) the market, 2) the trader, and 3) the trading system. He argues that a trader must understand and master all three components to achieve success.
  2. The Importance of Trading Psychology: Elder emphasizes that trading is as much a psychological game as it is a financial one. He provides practical advice on how to manage emotions, build confidence, and develop a winning mindset.
  3. The Power of Sentiment Analysis: Elder discusses the importance of sentiment analysis in trading, including how to identify and trade with market sentiment.
  4. The Art of Trading: Elder argues that trading is an art that requires creativity, intuition, and adaptability. He provides examples of how to think outside the box and develop unique trading strategies.

The book is written in an engaging and accessible style, making it easy for traders of all levels to understand and apply the concepts. The book has been widely praised by traders and market analysts, and is considered a must-read for anyone serious about trading.

Some of the key takeaways from the book include:

  1. Trading is a game of probabilities, not certainties.
  2. Risk management is essential to trading success.
  3. Trading psychology is just as important as market analysis.
  4. A trading plan is essential to achieving consistent results.
  5. Adaptability and flexibility are key to trading success.

Overall, "The New Trading for a Living" is a comprehensive and insightful guide to trading that provides valuable insights and practical advice for traders of all levels.