Alexander Elder is a professional trader and the author of a bestselling book ‘Trading For a Living’. From his personal experience as a psychiatrist as well as an accomplished trader, Elder has deep knowledge regarding the management, techniques and psychology of trading.
Here are few of the best trading insights / Quotes by Alexander Elder.
Best Trading Insights (Quotes) From Alexander Elder
To win in the markets, we need to master three essential components of trading: sound psychology, a logical trading system, and an effective risk management plan.
The market does not know you exist. You can do nothing to influence it. You can only control your behavior.
The goal of the good trader is not to make money but to make the best trades.
An astute trader aims to enter the market during quiet times and take profits during wild times.
Many traders ride an emotional roller coaster and miss the essential element of winning: the management of their emotions.
If you let the market make you feel high or low, you will lose money.
When a beginner wins he feels brilliant and invincible Then he takes wild risk and loses everything.
Amateurs look for challenges; professionals look for easy trades. Losers get high from the action; the pros look for the best odds.
When the market deviates from your analysis, you have to cut losses without fuss or emotions.
It pays to write down your plan. You need to know exactly under what conditions you will enter and exit a trade. Do not make decisions on the spur of the moment, when you are vulnerable to being sucked into the crowd. Plans are created by reasoning individuals. Impulsive trades are made by sweaty group members.
It is hard enough to know what the market is going to do; if you don’t know what you are going to do, the game is lost.
Beginners focus on analysis, but professionals operate in a three dimensional space. They are aware of trading psychology their own feelings and the mass psychology of the markets.
It is essential to wait for trades with a good risk / reward ratio. Patience is a virtue for a trader.
Remember, your goal is to trade well, not to trade often.