Book Review – Number 2

Filed under: Learn Forex Trading |

Well, we’re already at my second favorite forex-related book. Hasn’t that gone quick? This is a well-known book among traders and it is almost a kind of trading Bible. You may have already guessed it if you are familiar with it. So let’s get to it…

Number 2: “Come Into My Trading Room” by Dr. Alexander Elder

This is an absolute classic. It states on the cover that it is “A Complete Guide to Trading”, and although this is a big claim and no book can ever be a complete guide, it almost gets there. It is an award winning book and one that you surely must have if you have a serious interest in trading.

 

It begins by explaining the difference between investors, traders, and gamblers; before moving on to an examination of the different kinds of markets that you can trade. Elder then takes us through his ‘three M’s of Successful Trading’, which are ‘Mind’, ‘Method’, and ‘Money Management’. My favorite part of the book is the section on money management  – the lessons of which have been etched into my bones. The 2% solution, which he calls ‘protection from sharks’, and the 6% rule, which he calls ‘protection from piranhas’, should ensure that your trading bank remains safe. These are just my own personal favorites parts of the book though as these have been most relevant to me. But there are a plethora of similar gems scattered throughout the book.

 

The book ends on a section that helps you to get organized as a trader, such as keeping a trading diary and a look at equity curves, time, decision-making, and discipline. It is a book that you will return to again and again until the lessons are ingrained in your mind. This book is a five star read and come extremely highly recommended for anyone interested in trading. Buy it, read it, read it again. See you tomorrow for a review of my number one forex-related trading book.

 

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