The New Trading for a Living: Psychology, Discipline, Trading Tools, and Systems, Risk Control, Trade Management” by Alexander Elder

“The New Trading for a Living: Psychology, Discipline, Trading Tools, and Systems, Risk Control, Trade Management” by Alexander Elder is a revised and updated edition of the classic trading guide. Published in 2014, this book offers traders a comprehensive framework for achieving success in the ever-evolving financial markets. With a focus on psychology, risk management, and effective trading techniques, Elder provides valuable insights and practical strategies to navigate the complexities of modern trading.

Psychology: Mastering the Trader’s Mindset:

A fundamental pillar of Elder’s book is the exploration of trading psychology. He emphasizes the significance of developing a disciplined mindset and overcoming emotional biases that can hinder decision-making. Elder dives into topics such as fear, greed, and self-sabotage, offering techniques and exercises to cultivate emotional control and mental resilience. By mastering the psychological aspects of trading, readers can make objective and rational trading decisions.

Discipline and Trading Systems:

“The New Trading for a Living” stresses the importance of discipline in trading. Elder highlights the need for a well-defined trading plan, which includes entry and exit rules, position sizing, and risk management guidelines. He guides traders in developing and implementing their own trading systems based on their unique trading style and goals. By following a disciplined approach, traders can reduce impulsiveness and increase consistency in their trading activities.

Trading Tools and Technical Analysis:

Elder explores various trading tools and technical indicators that can assist in decision-making. He covers topics such as chart patterns, moving averages, oscillators, and volume analysis. Elder provides insights into how to effectively combine these tools to identify high-probability trade setups. Traders are encouraged to adapt these tools to their trading style and incorporate them into their overall trading systems.

Risk Control and Trade Management:

Effective risk management is a key element of successful trading, and Elder dedicates significant attention to this aspect. He introduces techniques such as position sizing, setting stop-loss orders, and trailing stops to manage risk effectively. Elder also emphasizes the importance of trade management, including scaling in and out of positions and adjusting strategies based on market conditions. By implementing robust risk control measures and managing trades effectively, traders can protect their capital and optimize their risk-reward ratio.

Adapting to Market Changes:

In “The New trading for a Living,” Elder acknowledges the dynamic nature of the markets and the need for traders to adapt to changing conditions. He provides guidance on adjusting trading strategies and systems to suit different market environments, including trending markets, range-bound markets, and volatile markets. By understanding market dynamics and adapting their approaches accordingly, traders can stay ahead of the curve and capitalize on opportunities.


“The New Trading for a Living: Psychology, Discipline, Trading Tools, and Systems, Risk Control, Trade Management” by Alexander Elder offers traders a comprehensive guide to achieving success in the modern market. Elder’s emphasis on psychology, discipline, and effective risk management provides readers with a solid foundation for navigating the complexities of trading. By mastering the psychological aspects, implementing robust trading systems, utilizing technical tools, and managing risk effectively, traders can increase their chances of consistent profitability. “The New Trading for a Living” is a valuable resource for traders seeking to enhance their skills, refine their approaches, and adapt to the ever-changing world of trading.

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