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Live in Singapore! Watch How Dr. Alexander Elder Trades Successfully In Falling Markets
In the Spotlight | 10 October 2008
By: Clement Kan
Articles (1) Profile

Dr. Alexander Elder needs no introduction to the trading community. His contribution to this industry through a few best-selling books and seminars has helped many traders to become successful. Among his successful trading books are Trading For A Living, Come Into My Trading Room and Entries And Exits.

It is important to note that Dr. Elder is a professional trader and a practicing psychiatrist. Dr. Elder was a child prodigy as he entered medical school at age 16 in Estonia and at 23 he was already working as a doctor. He worked as a psychiatrist in New York City and taught at Columbia University. His experience as a psychiatrist provided him with a unique insight into the psychology of trading.

Mind, Method And Money
He greatly emphasizes that a winning formula for trading should include the mind, the method and money. Many traders put too much effort on the method of trading and failed to be successful because they do not have the other two equally important components. After years of trading experience, he realized how important psychology is every time he trades. Many fail because they don’t follow some simple rules of trading. Without experience, they do not understand how emotions can take control of their trading decisions.

Having analyzed many traders, he knows the characteristics of winning traders and losing traders and this is essential for traders to know and understand so that they do not have the characteristics of losing traders. Every successful person knows that the only way to succeed is to learn and follow the footsteps and character of a successful person, not only in trading but also in anything that we want to achieve.

Dr. Elder’s advice in his books and seminars has helped many new traders and struggling traders to succeed in trading. After reading his books or attending his seminars, many traders are able to put together their methods and experience to develop a trading strategy to suit their personality. Dr. Elder describes this as the most important stage in trading. Most traders fail because they “force” themselves to follow a trading strategy that they are not able to comprehend and this will lead to lack of discipline and emotionally unprepared.

Money Management
Many books and trading seminars always emphasize on the methodology in trading but little is being taught on money management and the psychological aspect of trading. There is nothing wrong with that because traders are able to learn new ideas for their trading. But to become a successful trader, the trader must have the three components mentioned earlier.

Money management is often the component left out in these books and seminars because the returns may not be as attractive. There are many trading coaches and authors today who are competing with each other to provide the most promising trading systems that provide high returns in a short period of time. Those who believe in these premises are doomed to fail in trading because it will affect them psychologically.

Every trader knows that trading involves risk but many failed to respect and manage them well. Every trader has a different risk profile and it is important for traders to know and understand their risk profile so that they can develop a suitable risk management plan to trade successfully. A trader should trade within their means. They should not over-trade and should not be under-capitalized.

Triple Screen Trading System
Traders continually seek the holy grail in trading so they consistently jump from one trading system to another. These people can’t seem to get any system to work. A successful trader should not abandon something that works. A successful trader will continue to follow their system and only improve it from time to time to cater to market changes and not abandon it completely.

Dr. Elder developed his trading system many years ago and still trades the same basic system – The Triple Screen. He only improvises and fine-tunes his system from time to time to suit current market changes.

The Triple Screen System uses a longer-term trend following technique and a shorter-term overbought/oversold indicator to time the trades. For example, you can use a quarterly chart to establish the trend direction. Next, you use the weekly chart to determine whether price is overbought or oversold. Then you can use a daily chart to find buy or sell setups in confirmation with the daily and weekly chart readings.

The good part about this system is that you can use any time-frames that you like to suit your trading style. The theory to the whole system is to trade in the direction of the trend and wait for pullbacks within the trend. Then, you enter the trade as the trend resumes.

Successful Trading From Start To Finish

A trader should have his foundations right from the start to the finish. Many are too eager to get to the finish line and forgot to have a good start. Apart from having a method to trade, a trader should prepare the mind and have a sensible money management system that suits his/her personality before trading with real money.

New and struggling traders from South East Asia especially from Singapore now have the great opportunity to find out how to become successful directly from Dr. Elder because he will be in Singapore on the 25th of October 2008 for a one-day seminar and conference. Dr. Elder promises to expose whatever he can in this one full day event to help you to become successful, from start to finish.

Join The Conversation
The Shares Investment editorial team welcomes constructive feedback on our coverage and content. We would also be delighted to answer any questions on the above article. Leave us a comment below, and we'll get back to you shortly!

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