Alexander Elder gives trading tips for those aiming to trade for a living. Alexander Elder, a professional trader based in New York City, has a unique story.
He was born in the USSR and escaped to the US after jumping on a Soviet ship in Africa. Dr. Elder is a trained psychiatrist, whose experience provides him with unique insight into the psychology of trading. He is the author of Come Into My Trading Room and Trading for a Living, a modern classic among traders.
Alexander Elder believes that watching mainstream news is detrimental to one’s trading and believes standing aside can sometimes be the best approach.
“Alexander Elder, a professional trader based in New York City, has a unique story”
WEALTH TRAINING COMPANY
Alexander Elder gives his trading tips for being a successful trader based on three pillars
The three pillars are psychology, market analysis based on trading systems and money management.
Alexander Elder believes these pillars are akin to a stool on three legs, and if one is unstable, the trader risks blowing up his account.
He notes there is no trading system making up for poor money management.
“A short string of losses in combination with poor money management will destroy your trading,” he said.
“Keeping your emotions in check and analyzing yourself could take as much time as analyzing the markets,” he added.
He recommends traders be realistic and keep a diary of their trades.
“When you enter a trade print reason for doing so and a screenshot of what the setup looked like,” he said.
He thinks this is essential for learning from past mistakes so you won’t repeat them in the future.
He recommends setting up rules before entering and how you will exit the trade.
“Stop trading if you feel you have been trading too much and your results are poor, quit trading for a month. Analyse yourself and the methods,” he said.
“Keeping your emotions in check and analyzing yourself could take as much time as analyzing the markets”
ALEXANDER ELDER
Alexander Elder gives his trading tips; don’t count money
If you see profits and dream about what you could buy with that money, exit that trade.
He recommends practising sound money management.
Use long-term trends indicates. There is no one indicator to rule them all.
Exponential indicators are better than moving averages
Alexander Elder prefers using exponential indicators for longer periods.
He recommends traders watch related markets. If the exponential moving average is up in GM, and that is confirmed by Ford, that is a sign of strength.
Alexander Elder gives his trading tips; Triple Screen trading system
He recommends traders apply three separate tests to every trade, market tide, market wave and intraday breakout.
The priority of constructing a money management system is survival, steady returns and high returns.
Alexander Elder states that survival should come first.
Always live to trade another day.
Do not risk 2% of your equity in a simple trade, and move your stop losses in the direction of that trade.
