Rating: 
- A mediocre followup to Trading for a Living
I should probably begin by stating that I've read Elder's first book, Trading for a Living, and found it interesting but not groundbreaking. While it had some interesting concepts and had some great technical advice, the book did not revolutionize me as a trader. This book is more of the same with a little more added toward the end. In it Elder essentially restates what he taught in his first book, tweaks it a little (but not enough to justify buying another book), and then shows a few handpicked trades of his and attempts to demonstrate his theory in action.
The trades aren't terribly demonstrative, and since they were picked in hindsight (none of them are losing trades, by the way) they don't really add anything to the examples found throughout the book. Elder's strong point in this book are his discussions on money management, using stops, and the psychology of trading. If you haven't read his first book this one is probably worth a look, and if you were a huge fan of the first you might enjoy this one as well. Personally I find Dr. Elder quite close minded and condescending, and his "expert traders do it this way [his way], while beginners do it this way" comments rather tasteless. I enjoyed reading and learning his particular method of trading but the idea that his is the only right way to trade doesn't appeal to me.
That having been said, I found parts of this book to be enjoyable and some of it profitable. I say parts because some of the book was downright tedious and difficult to get through, and Elder's odd writing style (complete with analogies at every turn) makes wading through sections of the book a chore. Still, borrowed the book and skimmed over it I don't consider my time wasted, and have found some things in the book that merit a closer look.
Rating:
- Great Basis
Having been through many authors/gurus this is very simply the
best trading book I have read. I actually wanted to complete the workbook. On which I scored poorly. So, I re-read the book.
I do not know whether this is a great book for a highly successful advanced trader. Because I am not one. However, as an intermediate level trader I would strongly recommend it to any beginners to intermediates. I can't stress enough the value of Triple Screen as a starting point, diary/spreadsheet going forward. In short, there is more specific method guidance than in anything I've seen previously. If you are lost, get this book. It will help.
Rating:
- Not for Short-Term Trading
I am glad that Elder recognizes that applying his concepts to short-term trading, such as daytrading, is much harder than applying them to a longer time horizon.
His basic premise is that stocks tend to travel within channels. This is a volatility mean reversion argument, which when taken to its limit essentially argues that volatility does not exist - that stocks do not gap up or down and that when a stock breaks out of or down through its channel, it's automatically a long or a short (in the opposite direction of the respective move).
I couldn't disagree more.
If you apply Elder's concepts to daytrading, for example, you will lose all of your money. I did.
But, if you have a longer time horizon - such as a multi-day holding period, you could very well apply his concepts with some success - just be sure to apply his premise of stocks travelling within channels to stocks that recently FINISHED breaking out of or down through thier channels as opposed to stocks that are in a relatively tight range (primed for breakout). I'm very surprised that Elder doesn't address how volatility mean reversion can easily kill his style of trading if not applied properly to stocks that are consolidating.
In any case, take this book with a grain of salt as it is likely the first important trading book you'll read, but certainly (hopefully) not the last.
Rating: - Excellent for beginners!
As a beginner, i.e. someone who just recently began the foray into stocks and is fighting the steep learning curve to become proficient enough to even know what the right questions to ask are, this book is excellent.
It is exactly what I thought it would be, a step by step explanation of one particular traders methodology.
But, it is just that, one traders methodology. As a beginner that has no clue, of any methodology what so ever, it is the most insightfull book into how technical analysis ties into a trading system.
I am very gratefull for this book.
Rating: - Not crazy about it
Too well written for a 1-star, and you just have to respect the author of Trading for a Living. But I was quite disappointed.
Essentially it's a trend following methodology of entering on pullbacks to the 20 MA and exiting when they extend to the outer band (envelope, band, channel, it doesn't matter). Classic indicators are tweaked slightly and pitched as "Elder Indicators" which of course you can buy the disks for. Really this whole book could have been condensed to a 3 or 4 page .pdf file and not left any of the concepts out.
He advises against day-trading and questions whether it can actually be done profitably. That is pretty short-sighted of him in light of all the known profitable daytraders out there. His reasoning is that with his method it would be too difficult. That came across as egotistical and closed-minded to me.
The thing that really threw me off is that after a book teaching a trend-following system (and warning against other methods), the last section of chart examples are all counter-trend trades! Every single one of them is completely the opposite of what is taught in the book. You would think he could have thrown in at least one actual example that actually was trading the method in the book?
I joined his mailing list after reading the book and after almost two years of being on it, not one example of a trade set-up that comforms to the method in this book has been given. Instead, periodic "opinions" of market direction have been given for copper, oil, bonds, and the S&P 500. This from a guy who says don't have opinions on market direction. Too boot, all of them have been wrong! Got to wonder about this guy now, was Trading for a Living just a lucky fluke?
[...]
- A mediocre followup to Trading for a LivingI should probably begin by stating that I've read Elder's first book, Trading for a Living, and found it interesting but not groundbreaking. While it had some interesting concepts and had some great technical advice, the book did not revolutionize me as a trader. This book is more of the same with a little more added toward the end. In it Elder essentially restates what he taught in his first book, tweaks it a little (but not enough to justify buying another book), and then shows a few handpicked trades of his and attempts to demonstrate his theory in action.
The trades aren't terribly demonstrative, and since they were picked in hindsight (none of them are losing trades, by the way) they don't really add anything to the examples found throughout the book. Elder's strong point in this book are his discussions on money management, using stops, and the psychology of trading. If you haven't read his first book this one is probably worth a look, and if you were a huge fan of the first you might enjoy this one as well. Personally I find Dr. Elder quite close minded and condescending, and his "expert traders do it this way [his way], while beginners do it this way" comments rather tasteless. I enjoyed reading and learning his particular method of trading but the idea that his is the only right way to trade doesn't appeal to me.
That having been said, I found parts of this book to be enjoyable and some of it profitable. I say parts because some of the book was downright tedious and difficult to get through, and Elder's odd writing style (complete with analogies at every turn) makes wading through sections of the book a chore. Still, borrowed the book and skimmed over it I don't consider my time wasted, and have found some things in the book that merit a closer look.
Rating:
- Great BasisHaving been through many authors/gurus this is very simply the
best trading book I have read. I actually wanted to complete the workbook. On which I scored poorly. So, I re-read the book.
I do not know whether this is a great book for a highly successful advanced trader. Because I am not one. However, as an intermediate level trader I would strongly recommend it to any beginners to intermediates. I can't stress enough the value of Triple Screen as a starting point, diary/spreadsheet going forward. In short, there is more specific method guidance than in anything I've seen previously. If you are lost, get this book. It will help.
Rating:
- Not for Short-Term TradingI am glad that Elder recognizes that applying his concepts to short-term trading, such as daytrading, is much harder than applying them to a longer time horizon.
His basic premise is that stocks tend to travel within channels. This is a volatility mean reversion argument, which when taken to its limit essentially argues that volatility does not exist - that stocks do not gap up or down and that when a stock breaks out of or down through its channel, it's automatically a long or a short (in the opposite direction of the respective move).
I couldn't disagree more.
If you apply Elder's concepts to daytrading, for example, you will lose all of your money. I did.
But, if you have a longer time horizon - such as a multi-day holding period, you could very well apply his concepts with some success - just be sure to apply his premise of stocks travelling within channels to stocks that recently FINISHED breaking out of or down through thier channels as opposed to stocks that are in a relatively tight range (primed for breakout). I'm very surprised that Elder doesn't address how volatility mean reversion can easily kill his style of trading if not applied properly to stocks that are consolidating.
In any case, take this book with a grain of salt as it is likely the first important trading book you'll read, but certainly (hopefully) not the last.
Rating:
- Excellent for beginners!As a beginner, i.e. someone who just recently began the foray into stocks and is fighting the steep learning curve to become proficient enough to even know what the right questions to ask are, this book is excellent.
It is exactly what I thought it would be, a step by step explanation of one particular traders methodology.
But, it is just that, one traders methodology. As a beginner that has no clue, of any methodology what so ever, it is the most insightfull book into how technical analysis ties into a trading system.
I am very gratefull for this book.
Rating:
- Not crazy about itToo well written for a 1-star, and you just have to respect the author of Trading for a Living. But I was quite disappointed.
Essentially it's a trend following methodology of entering on pullbacks to the 20 MA and exiting when they extend to the outer band (envelope, band, channel, it doesn't matter). Classic indicators are tweaked slightly and pitched as "Elder Indicators" which of course you can buy the disks for. Really this whole book could have been condensed to a 3 or 4 page .pdf file and not left any of the concepts out.
He advises against day-trading and questions whether it can actually be done profitably. That is pretty short-sighted of him in light of all the known profitable daytraders out there. His reasoning is that with his method it would be too difficult. That came across as egotistical and closed-minded to me.
The thing that really threw me off is that after a book teaching a trend-following system (and warning against other methods), the last section of chart examples are all counter-trend trades! Every single one of them is completely the opposite of what is taught in the book. You would think he could have thrown in at least one actual example that actually was trading the method in the book?
I joined his mailing list after reading the book and after almost two years of being on it, not one example of a trade set-up that comforms to the method in this book has been given. Instead, periodic "opinions" of market direction have been given for copper, oil, bonds, and the S&P 500. This from a guy who says don't have opinions on market direction. Too boot, all of them have been wrong! Got to wonder about this guy now, was Trading for a Living just a lucky fluke?
[...]