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on April 3, 2016
Essential for the individual trader at any level.
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on January 3, 2004
I had read and gained great insight from his first book called Trading for a Living.
This new book did not add significantly to the content contained in the previous book hence I have given the book 2 stars. Minimal value added.
The essence of the book is to trade with the trend but to find value points within the trend. But as another reviewer has indicated, the example trades given in the diary section do not do this. Invariably these trades are of the bottom-picking variety, albeit with the technical rationale laid out pretty transparently. One is left with a feeling of confusion with respect to whether the author trades in accordance with the main part of the book, or in accordance with the example trades given in the trading diary.
The book is broadly split into 3 areas. Mind, Method and Money Management.
The section on trading psychology (Mind) is coherent, but for a more useful insight into this aspect of trading, I would strongly recommend Mark Douglas' books, for example Trading in the Zone or The Discipline Trader.
The section on trading methods (Method) is hardly revolutionary. As I have already alluded to, if you understand what a trend is and can identify pullbacks within it, this is all that you will gain from the book. The author does however have an interesting segment on multiple timeframe analysis (what he terms the Triple Screen).
The section on risk management (Money Management) is very weak and potentially dangerous in my view. The author recommends the "traditional" per trade risk of 2% of account size. Even a rudimentary Monte Carlo analysis would lead one to the conclusion that such an approach would result in an extremely volatile equity curve. As another reviewer may have indicated, a more prudent to risk management can be found amongst the works of Van K. Tharp, for example in Trade Your Way to Financial Freedom.
Sometimes the better path to a rounded knowledge is to gain it from several sources, rather than to attempt to squeeze it all into one book.
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on June 1, 2004
The book is very well written and drives home the three Ms over and over. You can't hear it enough because when your finger is on the trigger, this training will help you execute with confidence. You will not be a loser if you follow the plan. The problem is, very few have the discipline.
I have long been and investor, but I wanted to improve my exit strategies. I knew successful traders had to have great exit strategies or they could not survive very long. Consequently, I actually bought a book on trading. The book helped me with exit strategies, but also completely opened up the world of trading. While I still invest for the long term, I have set up an account for short term trading. I read the book and worked through the workbook in about three days. I already had much of the preliminary work established from my investing experience.
Within about a month, I had a trading plan that I liked and a sound money management and trade evaluation system. While I still primary invest in longer term trends, I have had a blast making numerous small short-term trend trades.
This book will help any trader who reads it with an open mind and strictly adheres to the Three Ms - Mind, Method, and Money (Management). If you are and investor, then this book will expose you to what else is going on with your markets.
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on January 31, 2004
Dr. Elder holds nothing back. The author shares with you a method, a system, and a technique for trading that can be applied to all markets.
This book and the study guide will take you step by step through the process of trading. If you don't have a trading plan this book will show you how to develope one. Also the author nudges you to awareness of the all important step of making the trading plan yours. If you are a novice this can be a huge hurdle to overcome without guidance. If you are a more experienced trader and can admit to yourself your result could be better, buy the book, its worth it.
Dr. Elder includes step-by-step guides for risk control, money management, record keeping and many more trading essentials that cannot be touched on in this review.
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on October 2, 2003
Book Review - Come Into My Trading Room by Dr Alexander Elder
It was with a great deal of curiosity that I began to read Come Into My Trading Room. Trading for a Living, Elders first and classic book was the second trading book I ever read and even 40 or so books on from there I still rate it in my top five and frequently recommend it to others who want a considered and honest introduction to trading.
I was interested to see how the themes and emphasis had changed and developed in the nine years since the first book was published. I had briefly read a couple of reviews that suggested it didn't add much to the previous book but I was eager to make my own mind up.
So the first question I asked myself was what hasn't changed?
The style of writing is as clear and engaging as in the first book. The layout is logical and in all key areas he suggests further, more specialised reading to take you deeper into the subjects that may interest you. For the size of the book (only 313 pages), it is very comprehensive and covers the three main areas of competence for a trader. Psychology, Technical Analysis and Money Management. So the three pillars from the first book are still very much standing.
What is different? A great deal in my opinion. The psychology section is vastly improved. I thought that to be the main weakness in the first book, with an over reliance on the AA model which (because of my professional background I have issues with) He draws the title of the psychology section from another excellent book by Mark Douglas, again giving the impression that Elder himself has been learning a lot over the past few years.
The technical analysis section goes much less into describing basic TA than the first book did and instead focuses more on the application of TA to trading. It also includes an update on a method first described in the first book the "triple screen" and a section on systems trading and system testing. As someone who is toying with developing systems at the current time I particularly enjoyed his discussion of the distinction between systems and discretionary traders.
The book is not just aimed at day traders, in fact he lays great emphasis on people examining their own motives to become day traders suggesting that you require at least a years successful experience with end of day trading before you move to intraday trading. He does ask his readers to answer tough questions about themselves and if you are able to give honest answers you will profit greatly from this book.
He also concurs with one of my prejudices, which I am happy to repeat here, he stresses that traders should take their first steps in inexpensive markets to trade. So with futures for example trading the Eurostoxx50 at 10 euros per point is a better starting point for the new trader than Dax at 25 euros per point. He also provides a helpful method for working out which markets you can afford to trade. It is this applied aspect of the book that makes it so valuable. There is no irrelevant padding here, every paragraph has relevance.

The overall balance of the book is about perfect now. In the first book the basic TA took up a large percentage of the volume, this time the sections are much more equitable, with quite rightly, money management and record keeping getting a much more through treatment than in the previous book.
One change in this book (and I did wonder if he had read Tony Oz's wonderful "The Stock Trader") is an addition of some actual trade examples. I always like seeing these because following them through gives a real insight into the traders mind in a way simple chart examples can't.
I think there is a more cautious/warning tone about this book than the first. I suspect this might be because Elder runs trading camps and has had lots of experiences with wannabe traders since writing the first book. He's very aware of the main reasons why people fail and makes these very explicit in the text.
There is also a very good and well referenced basic description of the major trading instruments their advantages and disadvantages something that was missing from the first book.
The section for new traders (or babes in the wood) as he calls them covers the basics of setting up to trade from home, which instruments and markets to look at and the issues of commission, slippage and expenses. He stresses the importance of the bottom line and the need to keep trading expenses such as commission under control
This is a book written by a mature trader and trader educator, who has seen and done it all and can now give the most balanced, practical and honest description of learning to trade you will find anywhere. I highly recommend it to new traders and improvers alike.
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on February 8, 2004
Alexander Elder gained well-deserved prominence for his first book, Trading For a Living. It's one of my favorite books on trading. Out of this classic came such new indicators as the Force Index, which is one of the indicators I use regularly in my chart software. I read Elder's follow-up, Come Into My Trading Room, in hopes of learning additional insights of the Force Index. While I found some new information here, I was even more impressed by the following lessons Elder shared:
1) "Some of the best trading opportunities occur after false breakouts" - I'm finding this more and more these days, which is why I actively use my Momentum Divergence indicators to separate the fakeouts from the real breakouts. Elder does a great job showing numerous charts throughout his book, laying the groundwork for the divergence examples he explains in great depth when you step into his trading room in the final chapter with many actual trading examples. You need to understand the concept of divergence to trade today's markets more profitably, and this book will be a great help in showing you how to trade divergence setups.
2) Triple Screen - Elder explains the important of using multiple timeframes, though he advocates two to no more than three time frames. The key concept is that whatever timeframe you use, you need to go up to the next longer timeframe to get confirmation. This provides the bigger picture trend to define the nature of your trades, and then you can return to the shorter timeframe and make more tactical decisions with this broader trend in mind as well.
3) Grade Your Performance - Elder actually quantifies trading effectiveness by defining the width of the channel for a stock, and what percentage of the move the trader actually captured to determine his grade. Regardless of how a trader measures his performance, it must be tracked in order to make improvements and experience constant improvement.
4) The SafeZone Stop - While I have not tested this indicator in my systems yet, Elder's SafeZone Stop looks like a more effective way to place a trailing stop than standard moving averages. The SafeZone Stop appears to adjust more rapidly to trending versus flat periods for a stock, compared to moving averages. This new technique should easily be worth many times the price of this book by itself.
5) Chapter 9: Trading for a Living - This chapter was my most highlighted chapter, as Elder covers the stages of growth from beginning to professional trader, covering a wide range of topics on trading discipline, time management, organization and developing a viable trading plan, to highlight just a few.
All in all, Come Into My Trading Room is an excellent follow-up to Elder's Trading For A Living, and I think you'll also find it a quick and thought-provoking read.
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on August 9, 2011
"You can be free. You can live and work anywhere in the world, be independent from the routine and not answer to anybody" - Alexander Elder

That has to be the most inspiring phrase I've ever heard in my life. Dr. Elder allows readers to understand themselves and what markets they should be trading. This book allows readers to develop discipline and realize the risk in the market while bringing to light the different trading techniques one can use in the market. Dr. Elder also stresses the importance of working within your boundaries which is money management, managing costs, risks, and determining what type of investor you are. Being a psychologist, Dr. Elder connects with readers in a greater way than just other typical investment books. He looks at the individual investor and takes into account the emotions and psychology that goes into trading. This is a good beginner and intermediate book. I would not recommend it to investors looking to get a complex analysis or quick trading tips. Rather, this book will allow you to understand yourself and prepare yourself for trading.

Great book, I have recommended it to many people interested in trading and who want to get a good start. You will not be disappointed !!
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on January 19, 2004
This book is a great guide to market psychology and exposes what happens to your money when you experience a loss in the market. Who gets it?
When I purchased the book (a recommendation from a friend) I paid no attention to the author. While reading the book, I sensed this was written by a PHD. Sure enough, it was. He also mentions this well in to the book. I'm skeptical of PHDs due to their "I'm always right" nature, however this author writes with an air of humility which is quite refreshing. He definitely writes like a man who's been at the market for a while.
But enough of my idle chatter, this book is an awesome guide to any type of trading. Want to buy put options because you think the market is going to turn? Read this book first!
Awesome information. A definite keeper.
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on April 23, 2002
I pre ordered the book and got it yesterday with the beautiful autograph
I scanned few pages and started with Disciplined trader chapter. It really had so much wealth of information and Really amazed my self
Read the chapter, Reviewed it again, done the study guide for that chapter. It really gave me all the info I need to go in the right direction
I attended lot of seminars, purchased software, etc ....
everything was related to knowledge only, I am not doing anything in terms of discipline. That is what I need and I am lacking in that. Working on it right now
Also, I was confused about how to document trades
The book gave excellent idea of three step process
- Excel work sheet: Entry/Exit details
- Equity curve: How the overall portfolio doing
- Trader's Dairy: Detailed comments on trade and Charts
What I want to say is I just read one chapter and got full worth of the book, could not wait to Thank you.
Working on the rest of the book, I am not hurrying to finish the book but concentrating on every detail, making notes, reviewing
again and again till I get it
I enjoyed the first book, "Trading for A living" very much. It is the best book that combined the 3Ms(Mind,Method and Money) required for successful traders
Once again I thank you very much and hope to be a successful trader (I am already on my way as I have gone from Loosing to NOT loosing, Next step is NOT loosing to making money)
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on November 29, 2002
It is my humble opinion that this, along with the author's first book, is a must read for successful trading.
The book is wriiten in easily understood stlye. It is like he is guiding you as a friend.
The contents and ideas are straight to the point. He introduces one or two methods that he uses, but does not really impose his methods. This is with the understanding that different people would be comfortable with different methods.
What is so brilliant about this book is the general trading concept that he 'teaches'. The psychological angle. The best part is, he approaches the area not with scientific mambo, but as the book's tiltle suggests, welcoming you to his trading room to spend the few days with him, as he slowly guides you with a winning method.
He does not promise any holy grail, just shows you the way that trading should be done. It's all up to us how we approach trading, but his ideas are very useful and helpful.
It'll be like going to the mountains and learning from a sage, you'll find enlightenment, but it's all down to yourself, with good help from the author.
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