✅ The 3 Pillars for Gaining Profit
Elder repeats this throughout the book. Miss one, and profits will not last.
1️⃣ Trading Psychology (The Most Important)
The biggest enemy is not the market — it is you.
Key rules
- Do not trade for excitement
- Emotional trading = guaranteed losses
- Winning traders feel calm, not excited
- Focus on process, not money
- After profits → stay humble
- After losses → stay small
Big idea
- Traders behave like addicts
- Losses trigger revenge trading
- Profits trigger overconfidence
Elder uses Alcoholics Anonymous (AA) principles:
- Admit you cannot control losses
- Trade one day at a time
- Follow strict rules, no exceptions
✅ Profit comes from discipline, not intelligence
2️⃣ Risk Management (Your Survival Engine)
Control risk first. Profits take care of themselves.
The 2% Rule (Most Important Rule)
- Never risk more than 2% of your account on one trade
- Professionals often risk only 0.5–1%
Formula
Position Size = (Max Risk $) ÷ (Entry – Stop Loss)
The 6% Rule (Account Protection)
- If total losses in a month reach 6% ➡️ Stop trading for the rest of the month
This prevents emotional spirals and account destruction.
✅ Traders who survive make money
❌ Traders who ignore risk eventually bleed out
3️⃣ Trading Systems (No Guessing Allowed)
If you don’t have rules, you are gambling.
Every trade must answer three questions before entry:
- Where do I enter?
- Where is my stop?
- Where do I take profits?
If you cannot answer all three → do not trade
Elder’s Preferred Approach
- Trend-following systems
- Trade with the dominant trend
- Enter on pullbacks, not breakouts
Famous Elder Systems
- Triple Screen Trading System
- Impulse System
- Channel & Moving Average systems
They all share one principle: ✅ Trade structure + confirmation + discipline
📊 How Profits Really Come
Not from big wins — but from small consistent edges
What winning traders do
- Cut losses quickly
- Let profits run in trends
- Risk little, win repeatedly
- Trade less, not more
- Journal every trade
What losing traders do
- Hold losers
- Skip stop losses
- Trade too often
- Increase size after wins
- Blame markets or brokers
🧠 Record‑Keeping = Hidden Profit Weapon
Your journal is your teacher.
You must record:
- Entry & exit
- Stop & target
- Risk %
- Reason for trade
- Emotional state
- What you learned
📈 Traders with detailed journals outperform those without them.
🏁 One‑Page Profit Checklist (Elder Style)
Before any trade, ask yourself:
✅ Is the higher‑timeframe trend favorable?
✅ Is risk ≤ 2%?
✅ Is reward at least 2× risk?
✅ Do I feel calm, not excited or angry?
✅ Is this an “A‑trade” or boredom trade?
If one answer is “no” → skip the trade
Final Truth from the Book
Trading is a business, not a prediction game
Profit comes from:
- Discipline > Intelligence
- Risk control > Market forecasts
- Consistency > Big wins
🎯View full course and VIP Telegram group here: https://t.me/+o1v0Xdd1uAIwMzA1