✅ 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