New Trading for a Living - Psychology, Trading Tactics, Money Management

The best-selling trading book of all time--updated for the new era
 
The New Trading for a Living updates a modern classic, popular worldwide among both private and institutional traders. This revised and expanded edition brings time-tested concepts in gear with today's fast-moving markets, adding new studies and techniques for the modern trader.
 
This classic guide teaches a calm and disciplined approach to the markets. It emphasizes risk management along with self-management and provides clear rules for both. The New Trading for a Living incudes templates for rating stock picks, creating trade plans, and rating your own readiness to trade. It provides the knowledge, perspective, and tools for developing your own effective trading system.
 
All charts in this book are new and in full color, with clear comments on rules and techniques. The clarity of this book's language, its practical illustrations and generous sharing of the essential skills have made it a model for the industry--often imitated but never duplicated. Both new and experienced traders will appreciate its insights and the calm, systematic approach to modern markets.
 
The New Trading for a Living will become an even more valuable resource than the author's previous books:
* Overcome barriers to success and develop stronger discipline
* Identify asymmetrical market zones, where rewards are higher and risks lower
* Master money management as you set entries, targets and stops
* Use a record-keeping system that will make you into your own teacher
 
Successful trading is based on knowledge, focus, and discipline. The New Trading for a Living will lift your trading to a higher level by sharing classic wisdom along with modern market tools.

List of contents

Preface xiii
 
Introduction 1
 
1. Trading--The Last Frontier 1
 
2. Psychology Is the Key 3
 
3. The Odds against You 5
 
ONE Individual Psychology 9
 
4. Why Trade? 9
 
5. Reality versus Fantasy 10
 
6. Self-Destructiveness 16
 
7. Trading Psychology 19
 
8. Trading Lessons from AA 21
 
9. Losers Anonymous 23
 
10. Winners and Losers 27
 
TWO Mass Psychology 31
 
11. What Is Price? 32
 
12. What Is the Market? 33
 
13. The Trading Scene 36
 
14. The Market Crowd and You 39
 
15. Psychology of Trends 43
 
16. Managing versus Forecasting 46
 
THREE Classical Chart Analysis 49
 
17. Charting 50
 
18. Support and Resistance 55
 
19. Trends and Trading Ranges 60
 
20. Kangaroo Tails 65
 
FOUR Computerized Technical Analysis 69
 
21. Computers in Trading 69
 
22. Moving Averages 74
 
23. Moving Average Convergence-Divergence: MACD Lines and MACD-Histogram 80
 
24. The Directional System 89
 
25. Oscillators 95
 
26. Stochastic 95
 
27. Relative Strength Index 99
 
FIVE Volume and Time 103
 
28. Volume 103
 
29. Volume-Based Indicators 107
 
30. Force Index 112
 
31. Open Interest 117
 
32. Time 121
 
33. Trading Timeframes 126
 
SIX General Market Indicators 133
 
34. The New High-New Low Index 133
 
35. Stocks above 50-Day MA 139
 
36. Other Stock Market Indicators 140
 
37. Consensus and Commitment Indicators 142
 
SEVEN Trading Systems 149
 
38. System Testing, Paper Trading, and the
 
Three Key Demands for Every Trade 151
 
39. Triple Screen Trading System 154
 
40. The Impulse System 162
 
41. Channel Trading Systems 166
 
EIGHT Trading Vehicles 173
 
42. Stocks 175
 
43. ETFs 176
 
44. Options 178
 
45. CFDs 186
 
46. Futures 187
 
47. Forex 194
 
NINE Risk Management 197
 
48. Emotions and Probabilities 197
 
49. The Two Main Rules of Risk Control 202
 
50. The Two Percent Rule 203
 
51. The Six Percent Rule 208
 
52. A Comeback from a Drawdown 210
 
TEN Practical Details 215
 
53. How to Set Profit Targets: "Enough" Is the Power Word 215
 
54. How to Set Stops: Say No to Wishful Thinking 219
 
55. Is This an A-trade? 225
 
56. Scanning for Possible Trades 230
 
ELEVEN Good Record-Keeping 233
 
57. Your Daily Homework 234
 
58. Creating and Scoring Trade Plans 238
 
59. Trade Journal 243
 
A Journey without an End:
 
How to Continue Learning 249
 
Sources 253
 
Acknowledgments 257
 
About the Author 259
 
Index 261

About the author

ALEXANDER ELDER, MD, is a professional trader and teacher of traders. He is the author of several best-sellers, considered modern classics among traders. He also wrote books about Russia and New Zealand. Dr. Elder was born in Leningrad and grew up in Estonia, where he entered medical school at the age of 16. At 23, while working as a ship's doctor, he jumped a Soviet ship in Africa and received political asylum in the United States. He worked as a psychiatrist in New York City and taught at Columbia University. His experience as a psychiatrist provided him with unique insight into the psychology of trading. Dr. Elder is an active trader, but he continues to teach and is a sought-after speaker at conferences in the US and abroad. Dr. Elder is the originator of Traders' Camps - week-long classes for traders. He is the founder of the SpikeTrade group, a community of traders whose members share their best stock picks each week in competition for prizes.

Summary

The best-selling trading book of all time updated for the new era The New Trading for a Living updates a modern classic, popular worldwide among both private and institutional traders.

Product details

• Authors: Alexander Elder, Alexander (Director Elder, Elder Alexander
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 24.04.2013
• EAN: 9781118443927
• ISBN: 978-1-118-44392-7
• No. of pages: 320
• Series: Wiley Trading; Wiley Trading Series
• Subjects: Social sciences, law, business > Business > Business administration; trading, Börsenhandel, Finance & Investments, Finanz- u. Anlagewesen