Step by Step Trading - Alexander Elder (2015).pdf

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Step by Step Trading
By Dr. Alexander Elder
Copyright 2015 by Dr. Alexander Elder
All charts by StockCharts.com – used with permission.
ISBN:
978-0-9744942-5-8
Published by elder.com
LEGAL: No part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form or by any means without the prior written permission of the copyright
owner.
DISCLAIMER OF WARRANTY: while the author has used his best efforts in preparing this
book, he makes no representations or warranties with respect to the accuracy or completeness of
the contents. The advice and strategies contained herein may not be appropriate for your
situation. You should consult with a professional where appropriate. The author shall not be
responsible for any loss.
Books by Dr. Alexander Elder
In chronological order:
Trading for a Living
Study Guide for Trading for a Living
Rubles to Dollars
Come into My Trading Room
Study Guide for Come into My Trading Room
Straying from the Flock: Travels in New Zealand
Entries & Exits: Visits to 16 Trading Rooms
Study Guide for Entries & Exits
The New Sell & Sell Short (with Study Guide)
To Trade or Not to Trade: A Beginner’s Guide (e-book)
Two Roads Diverged: Trading Divergences (e-book)
The New High – New Low Index (e-book), with Kerry Lovvorn
Additive Manufacturing (e-book)
The Trading Puzzle – Book One (e-book), with Kerry Lovvorn
The New Trading for a Living
Study Guide for The New Trading for a Living
Table of Contents
Free updates and the honor code
Starting Out on Your Journey
Markets are tough
Two steps that will put you ahead of the crowd
How to control risk
Good records make good traders
Technical Analysis
StockCharts Basics
Let’s create a chart (actually, two charts)
Dressing a naked chart: a pair of moving averages
Profits from manic-depression (using envelopes)
The power of bulls and bears (MACD indicator)
May the force be with you (Force index)
Less is more (other indicators)
Trading Systems
The trades to avoid (the Impulse system)
Every trade deserves a name (the system you trade)
Buying pullbacks in an uptrend
Catching reversals (false breakout with a divergence)
An end-of-day trend-following system (by Kerry Lovvorn)
Trading with fundamentals and technicals (by Philip Wu)
Trade Management
The sweet spot (what timeframe will you trade?)
Stops, targets, and risk control
Your visual diary
The road ahead
Sources
Acknowledgments
About the author
Free updates and the honor code
After we accumulate feedback for this e-book, we plan to issue an updated edition and send it at
no charge to all purchasers. If you bought this book from Elder.com, you’ll automatically
receive an update. If you bought it elsewhere, please
let us know,
and we’ll add your email to
our list for future updates. We have a strict privacy policy and will never release your
information to anyone.
Please
do not forward this
book
to your friends (i.e. commit piracy). Instead,
email your friends
this link
to make sure they receive the latest update.
Please do not copy this book.
I put several hundred hours of work into writing. Please reciprocate my trust in you by sending
your friends the above link rather than pirating the book.
And now, let’s embark on our journey.
Dr. Alexander Elder
Vermont, March 2015
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