The New Trading for a Living: Psychology, Discipline, Trading Tools and Systems, Risk Control, Trade Management

✅ 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

Trading Psychology

Trading psychology is the mental and emotional state that influences how you make decisions when trading. As your previous image highlighted, it is often considered 50% of the battle—more important than your strategy or technical skills.

While technical analysis tells you what to do, trading psychology determines if you actually do it.

Success in trading is no longer about discipline alone.
It is about mastering processes that make you adaptive, creative, productive, and emotionally intelligent.