STUDY GUIDE FOR THE NEW TRADING FOR A LLIVING The Wiley Trading series features books by traders who have survived the market’s ever-changing environment and have prospered—some by reinventing systems, others by getting back to basics. Whether you are a novice trader, professional or someone in-between, these books will deliver the advice and strategies you need to prosper today and in the future. For more on this series, visit our website at www.WileyTrading.com. Founded in 1807, John Wiley & Sons is the oldest independent publishing company in the United States. With offices in North America, Europe, Australia and Asia, Wiley is globally committed to developing and marketing print and electronic products and services for our customers’ professional and personal knowledge and understanding. STUDY GUIDE FOR THE NEW TRADING FOR A LIVING Psychology • Discipline Trading Tools and Systems Risk Control • Trade Management Dr. Alexander Elder www.elder.com www.spiketrade.com Cover design: Paul DiNovo Copyright © 2014 by by Dr. Alexander Elder. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646- 8600, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness