Book Review: Come Into My Trading Room by Dr. Alexander Elder

One of the books that I read when I began learning trading is: Come Into My Trading Room: A Complete Guide to Trading, authored by Dr. Alexander Elder.In my opinion, this is one of the best books for beginners, as it provides a comprehensive introduction to trading essentials as a solid foundation to build upon.In this book, Dr. Elder shares three important pillars of trading: Mind, Method, and Money (3M).The first M, Mind, refers to your trading psychology. Here he stresses the importance of discipline in trading,In order not to let emotions (fear and greed) to lead you astray, you must instill discipline to stick to your own trading system...

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ABANDONED BABY BULLISH vs. BEARISH

Both Abandoned Baby Bullish & Bearish are 3-day reversal patterns.Whether a pattern is bearish or bullish reversal, it depends upon whether it appears at the end of a downtrend (Abandoned Baby Bullish) or an uptrend (Abandoned Baby Bearish).As you may have noticed, Abandoned Baby Bullish & Bearish patterns resemble Morning Doji Star & Evening Doji Star patterns, respectively.The main difference between Abandoned Baby Bullish / Bearish patterns and Morning / Evening Doji Star patterns are as follow:For Abandoned Baby patterns, the shadows of the Doji on the 2nd day must completely gap below / above (or separated from) the shadows of...

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MORNING DOJI STAR vs. EVENING DOJI STAR

Morning Doji Star & Evening Doji Star resembles Morning Star & Evening Star.Morning & Evening Doji Star patterns can be seen as the variation of Morning & Evening Star patterns.The main difference is that for Morning & Evening Doji Star, the 2nd candle is a Doji.When the 2nd day candlestick is a Doji (i.e. Morning & Evening Doji Star), the chances of reversal are higher, and hence the reversal patterns are usually deemed more significant.MORNING DOJI STAR (BULLISH)Morning Doji Star is a bottom reversal pattern / bullish reversal pattern.It may be formed at the end of a downtrend, or during a pullback within an uptrend,...

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