Trading for a Living - Summary and Key Ideas

"Trading for a Living" is a comprehensive guide on how to succeed in the stock market by understanding market indicators and psychology, and developing a disciplined approach to trading.

The target group for the book "Trading for a Living" is individuals interested in stock trading, particularly those seeking to make it a primary source of income.

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Trading for a Living

Key ideas

01

Successful trading requires emotional control, self-analysis, risk management with a focus on long-term survival and growth over immediate profits.

02

Mass psychology significantly influences financial markets, and successful trading requires independence, emotional control, and understanding of crowd behavior.

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03

Traditional chart analysis reveals the psychology of financial markets, enabling profitable trades by predicting trends based on investor behavior.

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04

In the financial markets, computers and technical indicators are crucial tools that reveal market psychology, helping traders profit from crowd irrationality.

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05

Incorporating time as a hidden dimension in market analysis can provide valuable insights and trading advantages.

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06

Technical indicators like the New High-New Low Index, Traders' Index, Advance/Decline line, and Most Active Stocks indicator translate market behavior into signals for informed trading decisions.

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07

Consensus and commitment indicators reveal market psychology, helping to identify extreme market conditions and potential reversals.

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08

Elder-ray and Force Index are advanced technical indicators that provide insights into market dynamics by assessing the strength of bulls and bears and the force behind market movements.

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09

Technical trading systems utilize multiple timeframes, indicators, trailing stops, channel-based strategies, and volatility-adaptive tools to enhance signal quality and maximize trading opportunities.

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Summary & Review

"Trading for a Living" by Alexander Elder is a comprehensive guide to the world of trading. It provides a deep understanding of the psychological, analytical, and tactical aspects of trading. Elder emphasizes the importance of discipline, patience, and risk management, and he provides practical strategies to help traders succeed. The book is a valuable resource for both beginners and experienced traders, offering insights into the mindset of successful traders and the tools they use to make informed decisions.

Alexander Elder

Alexander Elder is a professional trader and a recognized expert in stock trading, futures and options. He was born in Leningrad and grew up in Estonia, where he later entered medical school, before fleeing to the West.

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