Alexander Elder – professional stockbroker and technical analysis expert. He was born in Leningrad, and grew up in Estonia, where he graduated from the Faculty of Medicine of the University of Tartu. Then he emigrated to the USA. After an internship in clinics in New York, he entered the New York Psychoanalytic Institute. Then he opened a private clinic.. In parallel, Alexander Elder began to work in the stock market and organized the company "Financial Trading", which has become one of the leading U.S. firms for the training of speculators. Alexander Elder shares his findings and advice in the book "How to Play and Win on the Stock Exchange".
Look for a broker, taking the lowest commission, and keep it on target. Design a game system, focused on relatively rare deals, and open them during stock market lulls.
The exchange game must be conducted according to a clearly defined methodology.. During the game, you should analyze your emotions, making smart decisions.
Keep a diary of your stock game with justification of the reasons for opening and closing deals. Pay close attention to situations, where your tactics are repeated. Those who do not heed the lessons of the past are doomed to fail it.
Never change your plan, when you have an open position.
To be successful, you must be careful with money.. A good stock trader looks after his capital, like an experienced scuba diver for air pressure in his scuba gear.
"Don't risk all your money" – the first commandment of a stockbroker.
The professional allows himself to risk only a small percentage of his capital on each trade.. The dilettante approaches the game, like an alcoholic to drink: looking forward to pleasure, and cums in a ditch.
If you are not sure, is it worth it to stay in the deal, take profits and look at the situation with fresh eyes, from the side. When you don't risk money, think more clearly. Exiting a trade and re-entering it is not harmful.
Imagine a lawyer, who, in the midst of the process, begins to calculate his fee. This – like a stockbroker, which the, sensing profit, loses his head with joy. Imagine a surgeon, who is dizzy at the sight of blood. It's like a stockbroker, losing confidence, when it takes a loss.
A real professional is unflappable – and when winning, and when losing.
Success in the stock market can be achieved, only doing it as a serious matter. Stock exchange game, based on emotion, doomed to failure.
The main sign of a gambler is an irresistible desire to place bets. If you see, that you speculate too much, take a break from the game for a month. During this time, you will be able to look at your actions in a different way..
There are clear similarities between an alcoholic and a losing stock trader. The stock trader endlessly changes the tactics of the game, like an alcoholic, who is trying to solve the problem, switching from spirits to wine or beer. Loser does not recognize, that he lost control over the course of his exchange life.
Primarily, you need to be aware of your tendency to self-harm. You must be responsible for all the consequences of your behavior., including failures., instead of complaining about bad luck and blaming others.
The stock trader is inspired by the win, feels omnipotent. Believing in your infallibility, he acts recklessly and loses what he has won. Most traders can't stand painful heavy losses.. Falling down to the bottom of the abyss, they are doomed to fly out of the stock exchange. Only a few understand, that they didn't lose because, that they played wrong, and therefore, what they thought wrong. Such people can change themselves and become successful stockbrokers..
Crowd members can catch the right trend, but not her reversal. Joining a group, the person is acting like a child, following the parents. Successful traders live their minds.
In the afterword to the book, Alexander Elder writes, that traders are often afraid to "pull the trigger", i.e. start buying or selling. This fear – the biggest problem for the marketer. If you have everything you need – game system, capital control rules, psychological rules for preventing losses, then, means, it's time to play the stock market, summarizes Alexander Elder.
