The goal of a successful trader is to make the best trades. Money is secondary.
Alexander ElderRead
Every winner needs to master three essential components of trading; a sound individual psychology, a logical trading system and good money management. These essentials are like three legs of a stool – remove one and the stool will fall, together with the person who sits on it.
Interpretation
What this quote means
Successful trading requires a strong mindset, a solid strategy, and effective money management.
The quote emphasizes the critical components necessary for success in trading, likening them to the three legs of a stool. If any one of these components—psychological resilience, a logical system, or sound money management—is missing, the entire structure collapses, indicating that a trader's success is contingent upon maintaining balance across all three areas.
Themes
TradingPsychologyMoneyManagementSuccess
In practice
Example use cases
This quote can be used in a trading seminar to illustrate the importance of psychological preparedness.
More from Alexander Elder
All quotes →Beginners focus on analysis, but professionals operate in a three dimensional space. They are aware of trading psychology their own feelings and the mass psychology of the markets.
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The market does not know you exist. You can do nothing to influence it. You can only control your behavior.
Alexander ElderRead
Traders lose because the game is hard, or out of ignorance, or lack of discipline or because of both.
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