Trading Insights from the Book ‘Trading For A Living’ By Alexander Elder
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‘Trading for a Living: Psychology, Trading Tactics, Money Management’ is one the best book on trading written by Dr. Alexander Elder. The book helps to understand the crowd behavior in the market and how to control one’s own behavior. It teaches trading discipline, trading methods and money management while trading.
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Here are some of the best words of wisdom from the book. Hope it is useful.
Best Trading Quotes From The Book ‘Trading For A Living’ By 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.”
“A loser’s true problem is not account size but overtrading and sloppy money management. He takes risks that are too big for his account size. “
“An astute trader aims to enter the market during quiet times and take profits during wild times.”
“When joy sweeps you off your feet, you will make irrational trades and lose. When fear grips you, you’ll miss profitable trades. A professional trader uses his head and stays calm. Only amateurs become excited or depressed because of their trades.”
“The market does not know you exist. You can do nothing to influence it. You can only control your behavior.”
“Markets are actually set up so that most traders must lose money. The trading industry slowly kills traders with commissions and slippage.”
“The public wants gurus, and new gurus will come. As an intelligent trader, you must realize that in the long run, no guru is going to make you rich. You have to work on that yourself.”
“Markets need a fresh supply of losers just as builders of the ancient pyramids needed a fresh supply of slaves. Losers bring money into the markets, which is necessary for the prosperity of the trading industry.”
“When a beginner wins he feels brilliant and invincible. Then, he takes wild risk and loses everything.”
“An intelligent trader takes only risks that will not put him out of business, even if he makes several mistakes in a row.”
“Trading offers an opportunity to make a lot of money in a hurry. Money symbolizes freedom to many people, even though they often don’t know what to do with it.”
“A sailor cannot control the ocean, but he can control himself. He studies currents and weather patterns. He learns safe sailing techniques and gains experience. He knows when to sail and when to stay in the harbor.”
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