Come into my Trading Room By: Alexander Elder
Alexander Elder's book Come Into My Trading Room is a comprehensive text outlining how to design and utilize a trading program from the ground up. The book is split into multiple sections. Elder begins by describing how to use technical analysis to find trades with a high probability of profit and a low probability of loss. The section is replete with examples and charts which make the techniques involved perfectly clear even to a new trader.
Elder does have some tricks to show more experienced traders, such as designing new indicators, but this section seems primarily geared towards novice traders. However, where the book really shines is in the sections on money management and record keeping. Elder rightly points out that this is where many new (and even experienced) traders find their systems lacking.
The book outlines concrete rules for money management designed to allow a professional to trade for a living without ever risking the possibility of a catastrophic loss. This section is well worth a read by any trader regardless of skill level. Elder also includes a section on the psychology of trading. This section is thin on breaking psychological research and is very much the traditional don’t trade on emotions advice and many of the primary topics (i.e. trade emotionlessly, don't get attached to your stocks, etc.) are better covered elsewhere. Perhaps this is because the author has a separate book, Trading for a Living, which covers this information in more detail.
The book which is divided in to three sections includes the basics of trading as seen through a trader’s eye, written by an experienced author. The first part of the book is an entry for a fresher into the trading world. This part is written in a simple and interesting manner such that, every new comer will continue reading further by understanding clearly the idea behind trading. The second part gives idea about the three M’s in trading – Mind, Method and Money. This topic is still deep into the secrets of trading and it shows how to manage the three main aspects that counts in trading. The third part of the book mentions the secrets of good trading from the experience of the author. This part which is the last one makes a new comer confident to dive into trading.
The language used in the book is very simple which makes the book most incredible. Every section and pages in the book is so informative that no newcomer should miss the book. The starting chapters, mentioning the difference between, investors, traders and gamblers itself will surely make anyone who reads the book to stick more to know more. Going further deep into the book, the author mentions clearly, where to start your trading career and how to develop the same. The author clearly mentions the pit falls which every trader should be careful of. The book takes us slowly from the state of a novice to a good trader without any hurry. The most useful thing in the book is that it does not makes you a trader alone but it makes you a disciplined trader cum teacher which makes you really get counted in the field.
The book is a clear example of a highly skilled content made simple by a highly skilled person for a starter. In short, I felt the book “Come into My Trading Room: A Complete Guide to Trading by Alexander Elder” is a real bible for those who wish to know more about trading and who wish to take it seriously. Overall, Come Into My Trading Room is a comprehensive text for a novice trader looking to set up a personalized stock trading system or a professional looking to review some basic techniques and set up a more secure money management program.
Categories:
Equities,
Intermediate,
Options
Learning about the intricacies of market is essential to go in the long run, thank you for sharing about this book. Forex traders utilize numerous techniques and strategies to identify the best entry and stop points, and the best timing for buying and selling traded currencies. Great blog. DT4X Trader