Book Review – The New Trading for a Living

“The New Trading for a Living” is the revised and updated version of “Trading for a Living”, one of the most popular and best seller volumes in the trading scene of the last two decades. The book covers very well important topics including, Trading Psychology, Discipline, Risk Control and Trade Management. In this new version the author also removes some of the old obsolete contents and inserts fresh new content such as new Trading Systems and Tools. Well suited for beginner and advanced traders with already a good basic knowledge of Foreign Exchange.

 

4-stars

 

book-the-new-trading-for-a-living-cover
The New Trading for a Living Cover

Title: The New Trading for a Living

Published: October 2014

Author: Alexander Elder

Suitable for:

  • Beginner Traders with already a basic knowledge of Forex
  • Advanced Traders looking to improve the trading management aspect

Main Topics:

  • Trading Psychology
  • Trading Discipline
  • Trading Systems
  • Trading Tools
  • Risk Management
  • Trade Management

 

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Content

The New Trading for a Living is not a book purely focused on Forex, indeed it is not called “The New FOREX Trading for a Living”. The book is more oriented to general trading concepts for any market and vehicle, just to mention a few: Stocks, ETFs, Options and Forex. Despite the lack of direct association with Currency Trading, at least the 90% of the content can be applied to Forex trading.

The first part of the book introduces some important psychological concepts that all the traders should know. These include the motivations driving many people to approach trading, a trader’s fears and psychological challenges, skills and mindset necessary to become profitable and the idea of Mass Psychology, that is how a group of people behave in the market.

The following few chapters explain charts, technical analysis, some indicators that the author frequently uses in his trading strategies and some practical trading systems. To be more specific, the author goes through: support and resistance, trends and trading ranges, moving averages, MACD, RSI and some volume indicators. Part of these indicators and trading systems are not relevant to Forex, but they are good to know for traders of other vehicles.

The last part of the volume is, in my opinion, very important and is dedicated to Risk Management and Record Keeping. The reader can understand how critical is to think in terms of probabilities, removing the emotional component from the trading behaviour, plus he/she is given rules for risk management. The author closes pushing on how important is to keep a trading journal, recording every trade with full details, because this is the way for self improvement.

Writing Style

It is easy to understand that the author is a Doctor and that is used to teach. The book is very well developed and it really seems a lecture in a university class. The “student” (reader) is introduced and taught all the subject with a clear language and right pace. Anyone with basic terminology and knowledge of the mechanism of trading can follow it quite easily. On a side critique I think the style is quite “cold” and the reader could be better engaged.

Value

The New Trading for a Living provides without any doubt a very good value for beginner traders. While there are many resources of technical analysis and trading systems, many lack of good explanations of Psychology and Risk Management. This book covers amazingly those fundamental aspects so that a beginner trader can improve his/her skills. An experienced trader is likely to already know the technical analysis part of the volume, however he/she could still benefit from the parts dedicated to Psychology, Risk Management and Record Keeping.

Conclusion

The author of “Trading for a Living” does a great job revising and updating his first book and producing this new version “The New Trading for a Living”. The book is more focused on general trading than Forex only however if you are looking to improve your mindset and risk management strategies you will surely benefit from this reading. I suggest this book to beginners with already some basic knowledge of technical analysis and to experienced traders with difficulties in becoming profitable.

 

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