Trading for living free download torrent

How to find entry and exit points in the trade. Moreover, a computer is a very strong tool in trading. How to use a computer to find a hot point in the market. How to develop a strong trading system using a computer. Further, through the computer, you will be able to find the probability of good and odds.

Also, trading for a living makes you able to manage money in your accounts and kick away losses. Moreover, to help out this book has multiple choice questions and their answers are given.

A small loss is like a sin- gle drink. A big loss is like a bender. A series of losses is like an alcoholic binge. A loser keeps switching between different markets, gurus, and trading systems. His equity shrinks while he is trying to re-create the pleasurable sensation of winning. Losing traders think and act like alcoholics, except that their speech is not slurred.

The two groups are so much alike that you can predict what a loser will do by using alcoholics as a model. Alcoholism is a curable disease-and so is losing. Losers can change if they start using the principles of Alcoholics Anonymous. The Urge to Trade Successful traders treat drawdowns the way social drinkers treat alcohol. They have a little and stop. If they take several losses in a row, they take that as a signal that something is wrong: It is time to stop and rethink their analy- sis or methods.

Losers cannot stop- they keep trading because they are addicted to the excitement of the game and keep hoping for a big win. One prominent trading advisor wrote that the pleasure of trading was higher than that of sex or flying jet aircraft. Just as an alcoholic proceeds from social drinking to drunkenness, losers take bigger and bigger risks. They cross the line between taking a business risk and gambling. Many losers do not even know that line exists. They make impulsive trades, go on trading binges, and try to trade their way out of a hole.

Losers bleed money from their accounts. Most of them bust out, but some turn to managing other people's money after they lose their own; still others sell advisory services, like burned-out drunks who wash glasses in a bar. Most losers hide their losses from themselves and from everyone else.

They keep shuffling money, keep poor records, and throw away brokerage slips. A loser is like an alcoholic who does not want to know how many ounces of liquor he drank.

Into the Hole A loser never knows why he loses. If he knew, he would have done some- thing about it and become a winner. He keeps trading in a fog. A loser tries to manage his trading the way an alcoholic tries to manage his drinking. Losers try to trade their way out of a hole. They switch trading systems, buy new software, or take tips from a new guru.

They act out a rescue fan- tasy - a charming belief in Santa Claus. Their desperate belief in magic solu- tions helps many advisors sell their services to the public. When losses mount and equity shrinks, a loser acts like an alcoholic threatened with an eviction or a firing.

A loser grows desperate and converts outright positions into spreads, doubles up on losing positions, reverses and trades in the opposite direction, and so on. Losers get as much good from these maneuvers as an alcoholic who switches from hard liquor to wine. A losing trader careens out of control, trying to manage the unmanage- able. Alcoholics die prematurely, and most traders bust out of the markets and never come back. New trading methods, hot tips, and improved software cannot help you until you learn to handle yourself.

You have to change how you think in order to stop losing and begin your recovery as a trader. Losers get drunk on losses; they're addicted to losses. Traders prefer prof- its, but even losses provide plenty of excitement. The pleasure of trading is very high. Few losers are actively trying to lose - but then few alcoholics are consciously trying to end up in the gutter. A loser keeps getting high from trading while his equity shrinks. Trying to tell him that he is a loser is like trying to take a bottle away from a drunk.

A loser has to hit rock bottom before he can begin to recover. It is painful and humiliating. You hit it when you lose money you cannot afford to lose. You hit it when you gamble away your savings. You hit it after you tell your friends how smart you are and later have to ask them for a loan.

You hit rock bottom when the market comes roaring at you and yells: "You fool! Others keep adding money to their account to postpone the day of reckoning. It hurts to see a loser in the mirror. We spend our lifetimes building up self-esteem. Most of us have a high opinion of ourselves.

It hurts a smart and successful person to hit rock bot- tom. Your first impulse may be to hide, but remember you are not alone. Almost every trader has been there. Most people who hit rock bottom die as traders. They slink away from the market and never look back. Brokerage records indicate that 90 out of people trading today will probably be gone from the markets a year from now.

They will hit rock bottom, crumble, and leave. They will try to forget trading as they would a bad dream. Some losers will lick their wounds and wait until the pain fades away. Then they will return to trading, having learned little.

They will be fearful, and their fear will further impair their trading. Very few traders will begin the process of change and growth. For these rare individuals, the pain of hitting rock bottom will interrupt the vicious cycle of getting high from winning and then losing everything and crashing. When you admit that you have a personal problem that causes you to lose, you can begin building a new trading life. You can start developing the disci- pline of a winner.

The First Step An alcoholic needs to admit that he cannot control his drinking. A trader needs to admit that he cannot control his losses. He needs to admit that he has a psychological problem with the losses and that he is destroying his trading account. The first step of an AA member is to say: "I am an alco- holic, I am powerless over alcohol.

Recovering alcoholics struggle to stay sober, one day at a time. Now you have to struggle to trade without losses, one day at a time. You may say this is impossible. What if you buy, and the market immedi- ately ticks down? What if you sell short at the bottom tick, and the market rallies? Even the best traders lose money on some trades. The answer is to draw a line between a businessman's risk and a loss.

A trader must take a businessman's risk, but he may never take a loss greater than his predetermined risk. A storekeeper takes a risk every time he stocks new merchandise.

If it does not sell, he will lose money. An intelligent businessman takes only risks that will not put him out of business even if he makes several mistakes in a row.

Stocking two crates of merchandise may be a sensible business risk, but stocking a full trailer is probably a gamble. As a trader, you are in the business of trading. You need to define your businessman's risk- the maximum amount of money you will risk on any single trade.

There is no standard dollar amount, just as there is no standard business. An acceptable businessman's risk depends, first of all, on the size of your trading account. It also depends on your trading method and pain tol- erance. The concept of a businessman's risk will change the way you manage your money see Chapter 10, "Risk Management". A sensible trader never risks more than 2 percent of account equity on any trade.

If your account is small, limit yourself to trading less expensive markets, or mini-contracts. If you see an attractive trade but your stop would have to be placed where more than 2 percent of equity would be at risk-pass that trade. Avoid risk- ing more than 2 percent on a trade the way a recovering alcoholic avoids bars. If you are not sure how much to risk, err on the side of caution. If you blame excess commissions on a broker and slippage on a floor trader, you give up control of your trading life.

Try to reduce both, but take responsibility for them. If you lose even a dollar more than your business- man's risk, including commissions and slippage, you are a loser. Do you keep good trading records? Poor record-keeping is a sure sign of a gambler and a loser.

Good businessmen keep good records. If you bail out of a trade within your businessman's risk, it is normal busi- ness. There is no bargaining, no waiting for another tick, no hoping for a change.

Losing a dollar more than your established businessman's risk is like getting drunk, getting into a brawl, getting sick to your stomach on your way home, and waking up in the gutter with a headache. You would never want that to happen. A Meeting for One When you go to an AA meeting, you will see people who have not had a drink in years stand up and say: "Hello, my name is so-and-so, and I am an alcoholic. Because if they think they have beaten alcoholism, they will start drinking again.

If a person stops thinking he is an alcoholic, he is free to take a drink, then another, and will probably end up in the gutter again. A person who wants to stay sober must remember that he is an alcoholic for the rest of his life. Traders would benefit from our own self-help organization-I'd call it Losers Anonymous.

Why not Traders Anonymous? Because a harsh name helps to focus attention on our self-destructive tendencies. After all, Alcoholics Anonymous do not call themselves Drinkers Anonymous. As long as you call yourself a loser, you focus on avoiding losses.

Several traders have argued against what they thought was the "negative thinking" of Losers Anonymous. A retired woman from Texas, a highly suc- cessful trader, described her approach to me.

She is very religious and thinks it would not please the Lord for her to lose money. She cuts her losses very fast because of that. I thought that our methods were similar. The goal is to cut losses due to some objective, external rule. Trading within a businessman's risk is like living without alcohol.

A trader has to admit that he is a loser, just as a drunk has to admit that he is an alcoholic. Then he can begin his journey to recovery. This is why every morning before trading I sit in front of the quote screen in my office and say: "Good morning, my name is Alex, and I am a loser.

I have it in me to do serious financial damage to my account. A trader who feels serene and relaxed can focus on looking for the best and safest trades. A trader who is tense is like a driver who freezes at the wheel.

When a sober man and a drunk enter a race, you know who is more likely to win. A drunk may win once in a while thanks to luck, but the sober man is the one to bet on. You want to be the sober man in the race. Most of us find that when we act in the market the way we do in our everyday life, we lose money.

Your success or failure in the market depends on your thoughts and feel- ings. It depends on your attitudes toward gain and risk, fear and greed, and on how you handle the excitement of trading and risk. Most of all, your success or failure depends on your ability to use your intellect rather than act out your emotions. A trader who feels overjoyed when he wins and depressed when he loses cannot accumulate equity because he is controlled by his emotions.

If you let the market make you feel high or low, you will lose money. To be a winner in the market you must know yourself and act coolly and responsibly.

The pain of losing scares people into looking for magic meth- ods. At the same time, they discard much of what is useful in their profes- sional or business backgrounds. Like an Ocean The market is like an ocean-it moves up and down regardless of what you want. You may feel joy when you buy a stock and it explodes in a rally. You may feel drenched with fear when you go short but the market rises and your equity melts with every uptick. These feelings have nothing to do with the market - they exist only inside you.

You can do nothing to influence it. You can only control your behavior. The ocean does not care about your welfare, but it has no wish to hurt you either. You may feel joy on a sunny day, when a gentle wind pushes your sailboat where you want it to go. You may feel panic on a stormy day when the ocean pushes your boat toward the rocks.

Your feelings about the ocean exist only in your mind. They threaten your survival when you let your feel- ings rather than intellect control your behavior. A sailor cannot control the ocean, but he can control himself. He studies currents and weather patterns.

He learns safe sailing techniques and gains experience. He knows when to sail and when to stay in the harbor. A suc- cessful sailor uses his intelligence. An ocean can be useful-you can fish in it and use its surface to get to other islands. An ocean can be dangerous-you can drown in it. The more rational your approach, the more likely you are to getwhat you want.

When you act out your emotions, you cannot focus on the reality of the ocean. A trader has to study trends and reversals in the market the way a sailor studies the ocean. He must trade on a small scale while learning to handle himself in the market. You can never control the market but you can learn to control yourself. A beginner who has a string of profitable trades often feels he can walk on water. He starts taking wild risks and blows up his account. On the other hand, an amateur who takes several losses in a row often feels so demoralized that he cannot place an order even when his system gives him a strong signal to buy or sell.

If trading makes you feel elated or frightened, you cannot fully use your intellect. When joy sweeps you off your feet, you will make irrational trades and lose. When fear grips you, you'll miss profitable trades.

A professional trader uses his head and stays calm. Only amateurs become excited or depressed because of their trades. Emotional reactions are a luxury that you cannot afford in the markets. Emotional Trading Most people crave excitement and entertainment.

Singers, actors, and profes- sional athletes command much higher incomes in our society than do such mundane workmen as physicians, pilots, or college professors. People love to have their nerves tickled- they buy lottery tickets, fly to Las Vegas, and slow down to gawk at road accidents. Losers who drop money in the markets receive a tremendous entertainment value. The market is among the most entertaining places on the face of the Earth. It is a spectator sport and a participant sport rolled into one.

Imagine going to a major-league ball game in which you are not confined to the bleachers. For a few hundred dollars you can run onto the field and join the game.

If you hit the ball right, you will get paid like a professional. You would probably think twice before running onto the field the first few times. This cautious attitude is responsible for the well-known "beginner's luck. Greedy amateurs start running out onto the field too often, even when there are no good playing opportunities.

Before they know what hit them, a short string of losses destroys their careers. Emotional decisions are lethal in the markets. You can see a good model of emotional trading by going to a racetrack, turning around, and watching the humans instead of the horses. Gamblers stomp their feet, jump up and down, and yell at horses and jockeys.

Thousands of people act out their emo- tions. Winners embrace and losers tear up their tickets in disgust. The joy, the pain, and the intensity of wishful thinking are caricatures of what h a p pens in the markets. A cool handicapper who tries to make a living at the track does not get excited, yell, or bet the bulk of his roll on any race.

Casinos love drunk patrons. They pour gamblers free drinks because drunks are more emotional and gamble more. Casinos try to throw out intel- ligent card-counters. There is less freg liquor on Wall Street than in a casino, but at least here they do not throw you out of the game for being a good trader.

In Charge of Your Life When a monkey hurts its foot on a tree stump, he flies into a rage and kicks the piece of wood. You laugh at a monkey, but do you laugh at your- self when you act like him?

If the market drops while you are long, you may double up on your losing trade or else go short, trying to get even.

You act emotionally instead of using your intellect. If you are just about to start trading, wait till you finish reading this book. If you have already started, take a break, read this book and get back! This book will be the most in informative for the newer class of traders. The author gives the reader a very good introduction to the various methods of technical analysis, trends, charting patterns and some popular indicators like MACD, momentum, Stochastics, RSI etc.

Putting the newbie aside, Elder also includes a lot of information for the experienced trader. The traders who have been in the market for a long time and have realized that there is something missing in their trading methods may not benefit a lot he says it is not advisable to change your strategy at this stage but should read the book nonetheless.

He has written a brilliant chapter on Risk Management. He also points out the differences in the methodology followed by a winning and a losing trader. He tells the importance of good quality trading.

There is a lot to learn from every profitable as well as loss-making trade. It is this analysis that will help you improve. Alix burton — Good Energy World Wide. Related posts:. Linh Trinh — 6 Figure Online Coach. Thomas K. Carr: Trend Trading for a Living Dr. Author: Sale Page…. Great stuff njana. Anyone has the Decryption Key?

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