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Blink 3 of 8 - The 5 AM Club
by Robin Sharma
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The New Trading for a Living summary
Psychology, Discipline, Trading Tools and Systems, Risk Control, Trade Management
16 mins
Brief summary
The New Trading for a Living by Dr. Alexander Elder is a comprehensive guide for new traders and experts alike, providing insights into market trends, psychology, and strategies for successful trading.
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The New Trading for a Living
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Key idea 1 of 8
A new trader can fall into many traps and end up paying more than she’d like.
Have you ever looked at famed stock traders like Warren Buffet and wondered why you can’t live like them? Well, you can! It’s challenging to get there, but if you’re cognizant of some early pitfalls, it’ll be much easier.
As you take the plunge into trading, the first thing to be aware of is the danger of commissions. You pay your broker or bank a commission every time you do a trade – and if you don’t watch out, these commissions will eat up your trading money!
Say you’re an active trader, doing two trades a day, four days per week, paying $10 per trade in commissions. By the end of each week those commissions amount to $80. Working 50 weeks a year, you’ll have paid $4,000 in commissions by year’s end! If you’re trading with $20,000 per year, that’s 20 percent of your budget spent on commissions alone.
To minimize commission costs, make sure you do your research on various brokers and banks. Compare their services and commissions carefully to avoid paying more than necessary.
Another common pitfall is slippage. Slippage means that your order could have been filled for less money than you paid. If you want to avoid this, you’ll need to make your orders the right way.
There are two order types: limit orders and market orders. Using a market order is rather like saying, “give me a stock.” This guarantees you a stock, but you don’t know at which price. If the price has increased from $50 to $53, you are paying $3 more than you intended.
Using a limit order is like saying “give me that stock for $50.” You won’t pay more than $50, but if nobody is selling at this price, you might not get a stock. Limit orders are definitely the way to go, since they prevent you from overpaying for stock.
Paying too much, whether to brokers or for stocks, is one pitfall the new trader faces, but it’s not the only one.
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What is The New Trading for a Living about?
The New Trading for a Living (2014) is your complete guide to getting started in trading. These blinks provide a detailed overview of a range of trading methods that will allow you to approach the market with minimum risk.
The New Trading for a Living Review
The New Trading for a Living (2014) by Dr. Alexander Elder is an invaluable resource for anyone interested in improving their trading skills. Here's why this book is worth reading:
- Packed with practical strategies and techniques, it empowers readers to make informed decisions and navigate the complexities of the financial market.
- By providing real-life examples and case studies, the book brings the concepts to life, making it easier for readers to grasp and apply in their own trading activities.
- With its comprehensive coverage of trading psychology, risk management, and technical analysis, the book offers a well-rounded understanding of the trading process, ensuring readers gain a holistic perspective.
Best quote from The New Trading for a Living
Getting into a boiling market is like jumping on a moving train: not a good idea.
—Dr. Alexander Elder
Who should read The New Trading for a Living?
- Those interested in alternative investment opportunities
- People studying finance or working in the financial sector
- Anyone who wants to start trading and earn a living doing it
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The New Trading for a Living FAQs
What is the main message of The New Trading for a Living?
The main message of The New Trading for a Living is that successful trading requires a combination of technical skills, emotional discipline, and risk management.
How long does it take to read The New Trading for a Living?
The reading time for The New Trading for a Living varies, but it usually takes several hours. The Blinkist summary can be read in just 15 minutes.
Is The New Trading for a Living a good book? Is it worth reading?
The New Trading for a Living is worth reading as it provides valuable insights and strategies for both novice and experienced traders.
Who is the author of The New Trading for a Living?
The author of The New Trading for a Living is Dr. Alexander Elder.
What to read after The New Trading for a Living?
If you're wondering what to read next after The New Trading for a Living, here are some recommendations we suggest:
- What I Learned Losing a Million Dollars by Jim Paul
- Trading in the Zone by Mark Douglas
- How to Day Trade for a Living by Andrew Aziz
- Day Trading Attention by Gary Vaynerchuk
- Make Money Trading Options by Michael Sincere
- How to Make Money in Stocks by William J. O'Neil
- The Hour Between Dog and Wolf by John Coates
- Building Your Money Machine with ChatGPT by Larry Wheeler
- The Little Book of Market Wizards by Jack D. Schwager
- Market Mind Games by Denise Shull