27 Quotes by Alexander Elder

Amateurs look for challenges; professionals look for easy trades. Losers get high from the action; the pros look for the best odds.

Traders lose because the game is hard, or out of ignorance, or lack of discipline or because of both.

Losers bring money into the market which is necessary for the prosperity of the trading industry.

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.

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.

To help ensure success, practice defensive money management. A good trader watches his capital as carefully as a professional scuba diver watches his air supply.

It is hard enough to know what the market is going to do; if you don’t know what you are going to do, the game is lost.

Why do most traders lose and wash out of the markets? Emotional and mindless trading are big reasons, but there is another. Markets are actually set up so that most traders must lose money. The trading industry slowly kills traders with commissions and slippage.

An astute trader aims to enter the market during quiet times and take profits during wild times.