Reviewed by Ed Dobson, President, Traders Press, Inc.
This is one of the best-selling and most highly recommended books on trading ever published. It is a perennial bestseller among trading titles and would rate near the top of the list of the many trading books I have read. Written by Dr. Alexander Elder, a world famous psychiatrist, market analyst, teacher, trader and speaker at trading conferences, it is, in my opinion, not only valuable reading for new traders and market students, but it is valuable for veterans as well…there's something of value here for almost anyone involved in or interested in the trading game.
Trading for a Living reminds me of another of my favorites (unfortunately now out of print and difficult to obtain), The Elements of Successful Trading by Robert Rotella, a former trader in the crude oil pit and now a successful money manager. The main three topics addressed in each book are the same, hence the similarities -- i.e., the three elements crucial to successful trading, which are a trading method or strategy that works and in which one has confidence, the proper psychology and effective money management (risk control) techniques. Elder names these "Three M’s": Mind, Money and Method. It is also reminiscent of John Murphy's classic, Technical Analysis of the Futures Markets, in that it is a comprehensive, well written text accompanied by an excellent study guide.
Trading for a Living starts out like a great movie that captures your attention and your imagination right from the opening moment:
You can be free. You can live and work anywhere in the world. You can be independent from routine and not answer to anybody. This is the life of a successful trader. Many aspire to this, but few succeed. An amateur looks at a quote screen and sees millions of dollars sparkle in front of his face. He reaches for the money -- and loses. He reaches again -- and loses more. Traders lose because the game is hard, or out of ignorance, or lack of discipline. If any of these ail you, I wrote this book for you.
This book accomplishes a difficult feat: It provides an enormous amount of worthwhile and useful information about highly technical subjects yet does so in a colorful and entertaining style. That is, it teaches and entertains the reader at the same time. Most books that impart as much wisdom as this one are dry and boring! Difficult concepts are made easy to understand with highly effective metaphors and similes, which permeate the book and make for fascinating reading.
A few examples of the priceless lines to be found throughout the book: "An amateur trying to get rich quick is like a monkey out on a thin branch," "Trading without a stop is like walking down Fifth Avenue in Manhattan without pants on," "The only way to make money with a black box is to sell one," "There are three types of slippage: common, volatility based, and criminal," and on and on.
Computerized technical analysis is examined thoroughly. Several major and commonly used indicators are explained in copious detail, as well as some of Elder's own proprietary indicators and systems, including his Force Index, Elder-Ray and Triple Screen Trading System. The topic of money management, often turned into a painful and incomprehensible array of statistics in other treatments of the subject, is treated clearly and effectively in plain English. Trading psychology is also treated in an interesting and unusual manner.
Whether you are a novice or a veteran, and whether you trade stocks, options or futures, you will find this classic to be a valuable addition to your library. Additional information and a complete table of contents may be found on www.traderspress.com.
Review by
Edward Dobson, President
Traders Press, Inc.
Greenville, SC
Additional details are available on www.traderspress.com.
