Come Into My Trading Room: A Complete Guide to Trading

by Alexander Elder

The trading bible for the new millennium In Come Into My Trading Room, noted trader and author Dr. Alexander Elder returns to expand far beyond the three M's (Mind, Method, and Money) of his bestselling Trading for a Living. Shifting focus from technical analysis to the overall management of a trader's money, time, and strategy, Dr. Elder takes readers from the fundamentals to the secrets of being a successful trader--identifying new, little known indicators that can lead to huge profits.

Come Into My Trading Room educates the novice and fortifies the professional through expert advice and proven trading methodologies. This comprehensive trading guide provides a complete introduction to the essentials of successful trading; a fresh look at the three M's, including a proven, step-by-step money management strategy; and an in-depth look at organizing your trading time. Come Into My Trading Room reviews the basics of trading stocks, futures, and options as well as crucial psychological tactics for discipline and organization—with the goal of turning anyone into a complete and successful trader.

By showing traders how to combine the elements of mind, method, and money, Come Into My Trading Room gives readers the knowledge and insight to enter the market with confidence and exit with profits. Unparalleled depth and a wide range of coverage will keep all levels of traders engaged, informed, and returning to Come Into My Trading Room again and again.

Dr. Alexander Elder (New York, NY) is a professional trader, technical analysis expert, and practicing psychiatrist. He is the founder of Financial Trading Inc., providing intensive trading camps to traders all over the world. Elder's first book Trading for a Living ( 0471592242) and the companion study guide have sold over 160,000 copies.

Genres: Finance, Nonfiction, Business, Economics, Money, Reference

313 pages, Kindle Edition

First published April 24, 2002

About the author

Dr. Alexander Elder is a professional trader based in New York City. He is the author of a dozen books, including Come into My Trading Room (Barron's 2002 Book of the Year) and Trading for a Living, considered modern classics among traders.

Dr. Elder was born in Leningrad and grew up in Estonia, where he entered medical school at the age of 16. At 23, while working as a ship's doctor, he jumped a Soviet ship in Africa and received political asylum in the United States. He worked as a psychiatrist in New York City and taught at Columbia University. His experience as a psychiatrist provided him with unique insight into the psychology of trading. Dr. Elder's books, articles, and software reviews have established him as one of today's leading experts on trading

Dr. Elder is the originator of Traders' Camps week-long classes for traders, as well as the Spike group for traders. He continues to trade and is a sought-after speaker at conferences in the US and abroad.

Reviews

[Mike Oksenenko · Rating 5 out of 5]

Best reading order:

1) To Trade or Not to Trade (Alexander Elder)
2) Two Roads Diverged (Alexander Elder)
3) Trading for a Living (Alexander Elder)
4) Entries and Exits (Alexander Elder)
5) Come Into My Trading Room (Alexander Elder)
6) Sell and Sell Short (Alexander Elder)

[Matthew · Rating 5 out of 5]

Really good. Repeats some material from Trading For A Living but because the repetition is selective, it helps to emphasise what Elder really thinks is important. He also adds a lot of new material, less around technical analysis and more around money management. Elder's greatest contribution, I think, remains that he is able to eliminate the impression of traders as being money-hungry, quick trading, stock price obsessed speculators, and give a sense of method behind the market madness. Traders are, as he notes, opinionated but flexible, confident but cognizant of the limits of their knowledge, socially contrarian, skeptical and unemotional (as far as possible) when making decisions, and a bunch of other nice sounding virtues. Hmm -- flattery perhaps, but really it gives one a sense of the kind of person one must be to be a good trader, rather than just a set of techniques. My only complaint is that his books are really expensive, but its hard to use the library editions because you want to underline so much stuff.

[Mario Russo · Rating 5 out of 5]

Good companion to Trading for a living book. It makes for a fun read with his analogies, his timeless psychological trading tips and this book covers in more detail risk management, which is the core soul of any trader/investor. Good stuff, Dr. Elder.

[Mira · Rating 3 out of 5]

Too much repetition not only throughout the book but in comparison with Trading for a living as well. This book is almost an exact copy of Trading for a living by the same author, with small added sections like Day trading, SafeZone exit strategy, and six examples of trades the author made, among which not a single loss was illustrated which is a shame.

[Lourens · Rating 4 out of 5]

Elder’s second book was quite an enjoyable ‘easy’ read. Not something easily said when it comes to books on Trading. The book is primarily split into 3 parts, Mind, Method & Money Management (and a final section on record keeping), dealing with Trading Psychology, Technical analysis and Management respectively.

What stood out most for me was the Mind & Management parts of the book, really well written and easy to follow, topics that really make you think. I took note of a lot of his ideas and will apply some of them to my own trading plan after testing them.

Being a FX trader only, I only skimmed through the Method Part as it is really geared towards trading the stock/shares, options and future market.

Trading books can sometimes be quite a struggle to get through, not so with this one. I will be reading it again after I have gone through all my notes. I highly recommend it to any trader, especial the Mind, Management and Record Keeping parts.

[Peter · Rating 4 out of 5]

I first read this book nearly ten years ago when I was trading heavily and still occasionally refer to it. It is an excellent follow up to Trading For a Living and for those interested in short term trading I would recommend both these works. Fortunately, I realized the folly and stress that goes with short term trading and have moved on. For every person who says that they can time the market I now respond, "That's fantastic because Warren Buffet says that's something he can't do. You must be smarter than Warren." I've even attended seminars where I've heard Dr Elder say that Buffet got his timing wrong on certain investments. That's one removed from criticizing Einstein. Having said that, Dr Elder's books are very very good and my one criticism of them is that after reading them there is a tendency to trade for shorter terms and more frequently.

[Linda · Rating 3 out of 5]

This is an interesting book on trading methodologies. It's strength is actually not on the details of trading but on managing risk and making a plan. It's weakest on how one makes the decisions on which trades to take. He proves general rules but doesn't get into enough details of the technical analysis to actually implement them unless the reader already knows TA or gets another book.

Despite that shortcoming, I found the rest of the book worthwhile and useful. I'll just need to brush up on technical analysis to put it into use.

[Sujata Sahni]

His book aims to convert a babe in the wood into an intellegent Financial Trader by differentiating between Investing, Trading and Gambling. The three M's of successful trading are Mind : Being disciplined, Method : Technical Analysis and Money Management via position sizing and applying the 2% and 6% rules as safety nets. The book provides effective tools to work as an organized trader via Trading Plan, Trading Spreadsheet, Trading Diary and Action Plan. He also also shared excerpts from his Trading diary.

[Tejas Tapsale · Rating 5 out of 5]

Book that gives you insight of day trading. There are lot of books talk about technical analysis but this book will tell you what behavioral traits needed to become profitable. It is true, someone may get in to trading because of his friends recommendation, easy money or just of fun. But lot of them forget it's a real profession. There are actual millionaires and billionaires in this field but they have discipline and hard work as high priority and this book gives all essentials to start. I recommend this book if someone interested in trading and take it as a serious profession.

[Jimmy Scharpf · Rating 3 out of 5]

Very educational for a novice trader. Note: trader, not investing. Must keep in mind that Mr. Elder is referencing mostly equity trading and longer term time periods as in days or weeks. If you are interested in more day trading education, as I was, his ideas still hold but don't follow his examples verbatim, apply and adjust them to your needs. His insight is very useful, especially his technical expertise.

[David · Rating 2 out of 5]

Yet another trading book that spends most of the time discussing the psychology of trading, risk mgt, etc. The world hardly needs another one,not saying that it is not needed for trading, but how many times should one be told.......if a first read ok. Not the best I've read, go read Tharp.

[Enrique · Rating 4 out of 5]

Nice book to understand a bit more how the market works

[Rohit · Rating 5 out of 5]

A definite read, even for understanding mindset with which you should approach trading. Thumbs up!!

[Ahmet Kara · Rating 4 out of 5]

Alexander Elder's books have taught me a lot. This title was helpful especially in getting the ABC of trading business.

[Tony WANG · Rating 4 out of 5]

Dr. Elder firmly believes in the 3M's of successful trading. They are 1. Mind (to develop iron discipline i.e. the psychology aspect), 2. Method (to acquire an edge over the market i.e. a vigorous system) and 3. Money (risk control and management). It is imperative to have an edge for the long term. Thus Dr. Elder relies on technical signals such as indicators and oscillators to increase odds. All indicators are building blocks of trading systems. As there are no certainties in the markets, only probabilities. I find his writing style very easy to follow. Also, chapter six details a decent introduction to futures and options.

The author used a lot of metaphors in this book. Here are some of the analogies that I find interesting:

"Learning to use indicators is like learning a foreign language.

Getting into a trade is like jumping into a fast-moving river. Be adept to react.

MACD offers traders what x-rays offer doctors, showing the strength or weakness of the bone below the surface of the skin.

Only losers say, “I’ll give this trade a little more room.” Never adjust protective stops.

A runaway trend can overshoot all rational expectations. Bear markets have no support and bull markets no resistance.

Money management is equivalent to glancing right and left when crossing a one-way street.

The 2% Rule will keep you safe from the sharks, the 6% Rule from the piranhas.

A civilized person is in touch with his past. Keep track of your trades through a diary."

In conclusion, the final chapter - Come Into My Trading Room, is basically a tutorial of some of his trades and a breakdown of his thought process with a step by step guide. The author explained his reasons for each entry with the help of MACD and other indicators. I find the systematic practice/plan rather enlightening. Overall, I think the book is very well put together. Solid 4/5.

"In the markets, almost anyone can make a good trade, but few can grow equity." Very true indeed.

[Rohan · Rating 4 out of 5]

This book is for absolute beginners. With some knowledge in psychology, you’ll find it boring at times. Some of the parts that I thoroughly enjoyed are the author’s opinions on markets, companies, and economics in general. I remember this vibe mostly in the first chapter, but there are several bombs throughout the book where he diffuses bits of knowledge in a similar way. And the book gets better with each page forward. This book is quite engaging overall, except for some random bits like options vs. stocks, etc.

If not the full book, I'll suggest everyone check out the Triple Screen strategy. It’s about choosing two different timeframes, as well as two conflicting indicators. It's one of the few strategies that I can justify intuitively, and it resonated with me deeply. It not only suggests we keep two or more timeframes open but also get a decisive action or output out of each of your so-called screens. In this way, it doesn’t just sound pretentious; rather, each of your perspectives is actually being forced into a specific use case.

To summarize, be selective with your stocks, risk management, and patience for your signals to play out. That’s it. One excerpt from the final chapter sums it up pretty nicely:

One could draw an extensive flowchart for every trade, but the key point is to observe several inviolate rules, mostly having to do with money management and multiple timeframes. As long as you observe those rules, you have a wide choice of analytic and trading techniques. Just be sure to keep good records and continue to learn from your experience if you want to trade like a pro.

[Leon · Rating 4 out of 5]

Great book for developing traders, addresses some common topics including keeping records, risk management, etc and also somewhat uncommon topics including adding MA's to equity curves, measuring drawdowns from peak equity, ABC system, proper way to approach tips, etc. The latter is certainly helpful for individuals wanting to take trading seriously. Also enjoyed the discussion on the amount of effort,time and mindset required to get from a beginner to a semi-pro and then to a professional. At the end of the book the author provided some examples of the setups he took and the majority of them are divergences. Interesting to note how at the end of the day there are just so many ways to trade.

[Aziz · Rating 4 out of 5]

This book is a clear guidance for you who start your trading. some people maybe have natural trading sense and somehow they always go to the right waves of the market. but for you who are not that lucky to have such gift in yourself, this book can provide clear guidance from finding the sign of a trade until the money management procedure. It's a very good book to start build your trading edge. I have yet Alexander Elder's other book called "Trading for living" but it seems like the book will also exciting to read and improve your trading sense.

[Dhaval Patel · Rating 5 out of 5]

To new Traders : Out of hundred trading books out there, I would recommend this one to start with if you are just starting out. This will shorten you learning curve. Highly recommended. Even for experienced traders, you would learn to add many things from this book to your system.

[Gurmukh Sandhu · Rating 4 out of 5]

Keep your records straight...

[Intakarn Na Takuathung · Rating 5 out of 5]

Suggested for amateurs and professional trader.

[RAFAEL RAMON]

Material indispensável para todos aqueles que buscam conhecer o mercado de capitais.

[Parit Boonluean · Rating 5 out of 5]

It Includes everything new traders need to know before come into investing stock/ futures/ options. 3M: Mind, Method, Money.

[Petr Halamicek · Rating 5 out of 5]

One of the best trading books I've ever read. The examples are described in excellent way. I really believe this book brought me to new level in my trading.

[Blaze-Pascal · Rating 3 out of 5]

Introductory book on trading... I like the 3 m's to trading. Mind, market, management.

[Jimbo Stark · Rating 1 out of 5]

Starts off as a cheap infomercial and quickly devolves into a useless, generic tripe. Not even worth the paper its printed on.

[Muhamad Khalid · Rating 5 out of 5]

Good trading book touches about psychology and trading discipline. I do hope I found this book earlier

[V.Shanmugam · Rating 5 out of 5]

Undoubtably a classic in trading books. Every aspiring trader should read this book.

[Alexander Castillo · Rating 5 out of 5]

I read this book because I wanted to learn more about risk management, but really, how to manage your losses. 2% rule, 6% rule.

[Istasia · Rating 4 out of 5]

Mind, Method, Money ✍️ 🔥