This book was one of the first books I read, or better it was the second book. The first was an introduction on technical analysis. I have placed this as one of the earlier books to read as this book will give you a general understanding on all the facets of trading from technical analysis to money management to trading psychology.
I really enjoyed it. Dr. Alexander Elder did inspire a bit of my earlier trading techniques. The Strategy he offers is simple and based on the MACD. I guess at times simplicity is key.
He gives a deep explanation of many technical indicators like the: moving averages, MACD, directional system, new high-new low index, etc.
He also introduces his own two indicators: Elder Ray and Force Index. Elder’s techniques are based on Volume and momentum. Volume is very important in markets.
In Trading for a living, he also introduced the Triple Screen trading (using three timeframes) method which was very insightful, which is a general trading method recommended.
He does go into trading psychology, Dr. Elder is a psychiatrist by profession and this helps him capture and explain the psychological of trading, how difficult trading psychology is, the roller coaster of emotions, and how often traders “marry” to their losing positions afraid to close them, in hopes for a reversal.
He goes further to explain how no great money management technique can help a loosing system, but poor money management can make any good strategy loose.
I really enjoyed this book at the beginning of my trading. If you are looking for explanations on all aspects of trading, this is a nice read.