Last Updated on August 15, 2022 by Oddmund Groette
Alexander Elder is an American investor, professional trader, and trader’s coach. He wrote titled, “The New Trading for a Living”, which was regarded as an outstanding book by traders. The book was published in 1993 and has become an international bestseller. It is available in over a dozen languages and has been used as teaching material for traders around the globe. (This was the first trading book we bought ourselves!)
Elder’s “Come into My Trading Room: A Complete Guide to Trading” received the 2002 Barron’s Book of the year Award. His “Entry and Exits: Visits to Sixteen Trading Rooms” also received the SFO Magazine Book of the Year Award in 2007. His latest published work is “The New Sell and Short: How to Take Profits, Cut Losses, and Benefit from Price Declines.”
Alexander Elder’s early life and career
He was born in Leningrad, was raised in Estonia, and went to medical school at 16. At age 23, while working onboard a ship as a doctor, he jumped a Soviet ship en route to Africa and escaped to the United States, where he received political asylum. Elder worked as a psychiatrist in New York City and also taught at Columbia University. His experience as a psychiatrist equipped him with an understanding of psychology in the trading process.
He is a full-time trader but still involved in running SpikeTrade.com, a trading club where trading members compete for the best trader of the week.
Dr. Edler developed his strategy, the triple screen trading system, in 1985. The name could be misleading, as it suggests that it involves trading with three screens, but it has nothing to do with that at all. It is not uncommon for Mr. Elder to use medical terminology in his trading. Elder also invented the Elder Ray Indicator.
For example, traders often adopt one indicator, screen, or filter to place their trade. There’s nothing wrong with using a single screen for your trade decision. There’s discipline involved in using just one screen or indicator; this discipline is perhaps the primary determinant for success.
“A loser’s true problem is not account size but overtrading and sloppy money management. He takes risks that are too big for his account size, however small or big. No matter how good his system may be, a streak of bad trades is sure to put him out of business.”
But what if the indicator or the filter used has a fundamental problem? What if the market is not the same as yesterday, last week, last month, and last year and your indicator or screen no longer works for today’s market condition. It implies that even indicators designed by successful traders may not work under some market conditions.
Elder has invented a trading system to solve simple averaging while it takes advantage of both of the best trend-following indicators and oscillator techniques. This system is designed to balance the shortfalls of single indicators simultaneously as it serves to identify the complexity of the market. The triple screen trading system does not apply to only one or two but three unique filters (screens) to every decision made during, combined to form trend-following indicators and oscillators.
Other famous traders and their trading strategies
- Top motivational trading quotes
- How Jim Simons’ trading strategies Made 66% A Year (The Medallion Fund)
- Ray Dalio – life, investment strategies, and philosophy
- Jesse Livermore – The World’s Most Legendary Trader? (Trading strategy quotes)
- Richard Dennis – The Turtle Trader (trend follower)
- William Eckhardt – The mathematical trader (An early Nassim Taleb)
- Stanley Druckenmiller – George Soros’ left hand
- Paul Tudor Jones – Maverick Trader (quotes and strategies)
- Micheal Steinhardt – To Make Money Is Should Be A Little Painful
- David Einhorn – investment strategy and philosophy
- Bill Ackman – investment strategy and philosophy
- Steve Cohen – Stock Market Wizard
- Mark Douglas – All About The Correct Trading Strategy Mindset
- Steve Clark – hedge fund strategy market wizard
- Larry Williams – Indicator Innovator, Strategy Trader, And Tax Rebellion
- Jim Rogers – The Adventurist Macro Trader
- Larry Hite – All About Trading Strategy Risk
- Randy McKay – Market Wizard currency strategy trader
- Michael Marcus – The First Trading Strategy Market Wizard
- Charles Faulkner – Trading strategy trader and programmer
- Richard Driehaus – Turtle Strategy Trader
- Dana Galante – the Market Wizard short seller
- Linda Raschke – Tape Reading Trading Strategy
- Nicolas Darvas – How I made $2,000,000 In The Stock Market
- David Shaw – the king of quant – quant trading strategy
- Van K. Tharp – The psychology of trading
- Larry Connors – Mean Reversion Strategy Trader
- Rob Hanna – Quantifiable Edges (trading strategy)
- Ahmet Okumus – From Istanbul to Wall Street
- Steve Watson – Small cap trading strategy investor/trader
- Gil Blake – The master of trading strategy consistency
- Blair Hull – All about the trading edge
- Howard Seidler – the original Turtle Trading Strategy Trader (The Turtle Experiment)
- Steve Lescarbeau – mutual fund trading strategy
- Tom Basso – Mr. Serenity
- Bruce Kovner – Trade Small And Manage Risk (Trade Many Trading Strategies)
- Michael Carr – Strategy Trader, Motivator, And Speaker
- Bill Lipschutz – FOREX strategy trader
- Brett Steenbarger – All About Trading Strategy Psychology
- Joe Ritchie – an early trading strategy quant in the option markets
- Micheal Masters – Stock Trading Strategy Market Wizard
- Monroe Trout – one of the first Market Wizards
- Mark Ritchie – Master Option Trader (God In The Pits)
- Alphonse Fletcher Jr. – Triple Digit Returns
- Mark Minervini – stock market wizard trader
- Mark D. Cook – market wizard trader and investor (Net worth and strategy)
- Jeffrey Yass – the founder of Susquehanna
- Claudio Guazzoni – Multillingual trader
- Micheal Lauer – Stock Market Wizard?
Alexander Elder trading strategy quotes
We end the article with some trading quotes from Alexander Elder:
Markets are actually set up so that most traders must lose money.
To win in the markets, we need to master three essential components of trading: sound psychology, a logical trading system, and an effective risk management plan.
Being simply “better than average” is not good enough. You have to be head and shoulders above the crowd to win a minus-sum game.
Remember, your goal is to trade well, not to trade often.