Alexander Elder – a professional speculator and expert on technical analysis. He was born in Leningrad and grew up in Estonia, where he graduated from Medical Faculty of Tartu University. Then he emigrated to the United States. After internships at clinics in New York, he enrolled in New York psychoanalytic institute. Then he opened a private clinic. Parallel Alexander Elder began working on the stock market and organized a company «Financial Trading», which became one of the leading U.S. firms for the preparation of stockbrokers. His findings and advice Alexander Elder is divided in the book “How to play and win at the stock exchange.
Looking for a broker, who takes the lowest fees, and hold him at gunpoint. Develop a system of play that focuses on the relatively rare deal, and open them in times of stock market lull.
Stock Market Game should lead to clearly defined methodology. During the game should analyze their own emotions, following the adoption of reasonable solutions.
Keep a journal of your speculation stating the reasons for opening and closing transactions. Especially watch for situations where your tactics are repeated. Did not heed the lessons of the past are doomed to fail him.
Do not change the plan when you have an open position.
Success should be sparingly, to handle money. A good stockbroker watching their capital, as an experienced diver for the air pressure in your tank is.
“Do not risk all the money” – the first commandment trader.
Professional allows you to take a risk only a small percentage of capital on each trade. Amateur same approach to the game, like an alcoholic to drink: anticipating the pleasure, and ends in the gutter.
If you are not sure whether to remain in the transaction, clear profit and look at the situation with fresh eyes, from the side. When not risking money, think more clearly. Exit and re-enter the transaction is not harmful.
Imagine a lawyer who in the midst of the process begins podchityvat your fee. This – as stockbroker, who, scenting profit, losing his head with joy. Imagine a surgeon, who at the sight of blood dizzy. It’s like a jobber, losing confidence in yourself, when bears the losses.
This professional unruffled – and winning, and losers.
Success in stock market game can be achieved only doing it as a serious matter. Exchange game based on emotion, is doomed to failure.
The main sign of gambling – an irresistible urge to place bets. If you see that spekuliruete far too much, take a break in the game for a month. During this time you can look at their actions differently.
Between an alcoholic and losing traders have a clear resemblance. Stockbroker endlessly changing tactics of the game, like an alcoholic who tries to solve the problem by going to the spirits of wine or beer. Loser does not recognize that he has lost control over the course of its stock of life.
First of all, you need to understand their tendency to self-harm. We must be responsible for all consequences of his conduct, including failure, and not complain about bad luck and blame others.
Stockbroker inspiration from the win feels omnipotent. Believing in his infallibility, he acts recklessly and lost won. Most traders can not tolerate the painful heavy losses. Having rolled to the bottom of the abyss, they are doomed to fly with the exchange. Few realize that lost, not because it is wrong to play, but because they wrongly thought. Such people can change themselves and go into successful stockbrokers.
Members of the crowd can catch the correct trend, but not its reversal. Acceded to the group, the person behaves like a child following the parents. Successful stockbrokers live his mind.
In the afterword to the book Alexander Elder writes that the speculators are often afraid to “pull the trigger”, that is to begin to buy or sell. This fear – the main problem for the trader. If you have everything you need – the system of the game, the rules of capital controls, the psychological rules prevent loss, it means it’s time to play the market, concludes Alexander Elder.