The New Trading for a Living

Reviewed by Diario de un Inversor · UpdatedJune 13, 2026

Our review

Published in 2014, this revised and expanded edition updates Alexander Elder's foundational «Trading for a Living» (1993) with tools and indicators that did not exist when the original was written. Elder — a psychiatrist by training who became a professional trader — preserves the tripartite structure that defines his approach: trader psychology, technical analysis system, and money management — the three Ms: Mind, Method, Money. The update incorporates the Impulse System, an enhanced MACD histogram, and more precise risk management tools, including the 2% rule per trade and the 6% monthly drawdown limit. The book is dense and demands genuine technical engagement from the reader; it is not an introductory text. One of its most valuable qualities is Elder's honesty about failure: he acknowledges that most traders lose money and analyses in detail the psychological mechanisms that perpetuate that loss. The combination of technical rigour and psychological self-awareness makes this one of the most complete references in modern trading literature.

Key takeaways

• The three Ms — Mind, Method, Money — must function together; weakness in any one invalidates the other two.
• The 2% rule caps maximum loss per trade; the 6% rule halts trading when the monthly drawdown reaches that threshold.
• The MACD histogram and Impulse System allow traders to identify the precise moment the market's «mood» shifts.
• Self-discipline is not an innate trait but a habit built through record-keeping, routines, and continuous review.

Fact

The first edition of «Trading for a Living» was published in 1993; the revised edition described here, «The New Trading for a Living», was published in 2014 with substantially expanded material.