Alexander Elder: A Respected Trader and Educator Who Empowers Traders Worldwide

Alexander Elder, a prominent trader, author, and educator, has made a significant impact on the trading community through his expertise, insights, and educational contributions. With a background in psychiatry, Elder brings a unique perspective to the world of trading by emphasizing the psychological aspects of trading success. Let's explore the life and teachings of this influential figure in the trading world.

Born in Estonia in 1950, Alexander Elder moved to the United States as a young adult and pursued a career in medicine. He obtained a medical degree and worked as a psychiatrist, which provided him with a deep understanding of human behavior and emotions. Combining his medical background with his interest in financial markets, Elder embarked on a journey to become a successful trader.

Elder's trading approach revolves around the concept of "triple screen trading," which he introduced in his book, "Trading for a Living." This methodology emphasizes the importance of using multiple timeframes to analyze the market, ensuring a comprehensive understanding of the market's trends and dynamics. The triple screen trading approach helps traders make informed decisions by aligning the short-term, intermediate-term, and long-term trends.

Beyond technical analysis, Elder places significant emphasis on the psychological and emotional aspects of trading. He believes that successful trading requires not only a solid understanding of market dynamics but also self-discipline, emotional control, and a proper mindset. Elder's teachings emphasize the need for traders to master their emotions, manage risk effectively, and maintain a disciplined approach to trading.

Elder's contribution to trader education extends beyond his books. He is a highly regarded speaker and educator, conducting seminars and workshops worldwide. His ability to communicate complex trading concepts in a clear and practical manner has earned him a dedicated following among traders seeking to improve their skills and achieve consistent profitability. Through his teachings, Elder empowers traders to develop their own trading systems and find their unique edge in the markets.

One of Elder's notable books, "Come into My Trading Room," delves deeper into the psychological aspects of trading. In the book, he explores the importance of developing a trading plan, managing risk, and maintaining a disciplined approach. Elder provides valuable insights into the mindset required for successful trading, helping traders overcome common psychological pitfalls and biases that can hinder their performance.

Elder's teachings have resonated with traders worldwide, and his contributions have had a lasting impact on the trading community. His emphasis on the psychological aspects of trading has helped countless traders improve their decision-making processes, manage their emotions, and achieve consistent profitability. Through his books, seminars and workshops, Elder continues to inspire and educate traders, providing them with the tools and knowledge needed to navigate the complexities of the financial markets.

Beyond his accomplishments as a trader and educator, Elder is also an advocate for financial literacy and investor education. He believes that by empowering individuals with the necessary knowledge and skills, they can take control of their financial futures and make informed investment decisions.

Alexander Elder's expertise, insights, and dedication to trader education have solidified his place as a respected figure in the trading world. Through his emphasis on the psychological aspects of trading and his practical approach to market analysis, Elder has helped traders worldwide improve their trading skills and achieve their financial goals. His legacy as a trader, author, and educator continues to shape the way traders approach the markets, highlighting the importance of both technical analysis and psychological discipline in achieving long-term trading success.

Philip Fisher: A Pioneering Investor and Author Who Transformed Investment Strategies

Philip Fisher, a renowned investor and author, left an indelible mark on the world of finance with his groundbreaking investment philosophy and strategies. Fisher's innovative approach to investing emphasized the importance of long-term investment horizons, thorough company analysis, and the concept of investing in high-quality growth stocks. Let's delve into the life and investment principles of this legendary figure.

Born in 1907, Philip Fisher began his investment career in the 1920s and witnessed firsthand the tumultuous ups and downs of the stock market. He recognized the need for a more disciplined and research-driven approach to investing, which led him to develop his unique investment philosophy.

Fisher's investment philosophy revolved around what he called "scuttlebutt" research. Instead of solely relying on financial statements and quantitative data, Fisher believed in gathering qualitative information by conducting extensive interviews with industry experts, competitors, customers, and suppliers. This approach enabled him to gain valuable insights into a company's management, products, and potential for growth.

Fisher's focus on understanding the qualitative aspects of a company set him apart from many of his contemporaries. He believed that successful investing required a deep understanding of the company's business model, competitive advantage, and long-term growth prospects. Fisher's emphasis on investing in well-managed companies with sustainable competitive advantages laid the foundation for what is now commonly known as "quality investing."

One of Fisher's most notable contributions to the field of investment was his book, "Common Stocks and Uncommon Profits," published in 1958. The book became an instant classic and remains a must-read for investors to this day. In the book, Fisher outlined his investment principles and shared his insights on how to identify exceptional companies with strong growth potential.

Fisher's investment philosophy emphasized the importance of patience and long-term thinking. He advocated for holding onto high-quality stocks that showed strong growth potential and believed that compounding returns over time were key to achieving superior investment results. Fisher's approach stood in contrast to the prevalent short-term speculation and market-timing strategies of his time.

Fisher's investment track record spoke for itself. He achieved remarkable success by investing in companies such as Motorola, Texas Instruments, and The Walt Disney Company, which went on to become some of the most successful and iconic companies of our time. His investments were often characterized by his willingness to hold onto stocks for long periods, allowing them to appreciate in value as the companies continued to grow.

Fisher's principles and investment strategies continue to be highly influential in the world of investing. His emphasis on thorough company analysis, a focus on long-term growth prospects, and the importance of investing in high-quality companies have stood the test of time. Many successful investors and fund managers attribute their investment approaches to the teachings of Philip Fisher.

Philip Fisher's contributions to the field of investing extended far beyond his own successful investment career. His philosophy and insights continue to shape the investment strategies of individuals, professionals, and institutions alike. By emphasizing the importance of in-depth research, long-term thinking, and investing in high-quality companies, Philip Fisher's legacy as a pioneering investor and author remains strong to this day.

Jesse Livermore: The Legendary Trader Who Mastered the Markets

Jesse Livermore, often referred to as the "Boy Plunger" and the "Great Bear of Wall Street," was a legendary trader and one of the most influential figures in the history of financial markets. Livermore's extraordinary ability to navigate the ups and downs of the stock market and his insights into market psychology earned him both immense wealth and profound respect from his peers. Let's delve into the life and trading strategies of this remarkable individual.

Livermore's journey in the financial world began in the early 1900s when he started trading stocks. He quickly gained a reputation for his uncanny ability to anticipate market trends and his exceptional skill in timing his trades. Livermore's success was not merely based on luck but rather on his deep understanding of market dynamics and his ability to interpret price action.

One of Livermore's most famous trades came during the market crash of 1929, where he capitalized on the downward trend and made a significant profit by short-selling stocks. This accomplishment solidified his reputation as a brilliant trader and garnered widespread attention. Livermore's approach to trading was based on careful analysis of market patterns, understanding investor sentiment, and employing sound risk management strategies.

Livermore's trading philosophy revolved around the concept of "reading the tape." He believed that studying the price and volume movements of stocks provided valuable insights into market sentiment and potential future trends. By closely observing the market's behavior, Livermore could identify accumulation and distribution patterns, which helped him make informed trading decisions.

Livermore was known for his discipline and strict adherence to his trading rules. He emphasized the importance of patience, waiting for the right opportunities, and not being swayed by market noise or emotions. He understood the significance of risk management and emphasized the need to cut losses quickly if a trade went against him.

Livermore's trading prowess was not limited to stocks. He successfully traded commodities and currencies, showcasing his versatility and adaptability across different asset classes. His ability to spot trends and capitalize on market inefficiencies allowed him to amass great wealth throughout his career.

Despite his remarkable success, Livermore's life was not without its share of challenges. He experienced significant losses during certain periods, and his personal life was marked by turbulent relationships and personal struggles. Nevertheless, he remained resilient and continued to learn from his experiences, adapting his strategies to changing market conditions.

Livermore's trading career was not only defined by his financial achievements but also by his contributions to the field of trading and investing. He published a book, "Reminiscences of a Stock Operator," which became a classic in the trading community. The book chronicled his experiences and offered valuable insights into market psychology and the art of speculation.

Livermore's legacy continues to inspire traders and investors to this day. His approach to trading, emphasizing the importance of discipline, risk management, and a deep understanding of market dynamics, serves as a timeless reminder of the skills necessary to navigate the complexities of financial markets.

Jesse Livermore's extraordinary talent, relentless pursuit of knowledge, and his ability to adapt to changing market conditions made him one of the most celebrated traders in history. His remarkable achievements and insights continue to shape the way traders and investors approach the markets, solidifying his place as a true legend in the world of finance.

James Tobin: A Visionary Economist and Advocate for Responsible Finance

James Tobin, a renowned economist and Nobel laureate, left an indelible mark on the field of economics through his groundbreaking research and influential policy recommendations. Tobin's work spanned various areas, but he is best known for his contributions to macroeconomics, monetary theory, and his advocacy for responsible finance. Let's delve into Tobin's accomplishments and the impact of his ideas.

Tobin's seminal contribution to macroeconomics is the "Tobin's q theory," which examines the relationship between investment and stock prices. According to Tobin, when the market value of a company exceeds the cost of replacing its physical assets (q > 1), it signals that firms should increase investment. Conversely, when q falls below 1, it suggests that firms should reduce investment. This theory provides valuable insights into the dynamics of investment behavior and its relationship with financial markets. Tobin's q theory has influenced research on business cycles, investment decisions, and the role of financial markets in driving economic activity.

Another significant contribution by Tobin is his development of the "Tobin Tax," also known as the "Robin Hood Tax." This proposal suggests imposing a small tax on financial transactions to curb speculative trading and generate revenue for social welfare purposes. Tobin argued that such a tax would discourage short-term speculative activities that contribute to market volatility, while also addressing issues of income inequality. Although the implementation of the Tobin Tax has faced practical challenges and debates, its underlying principle of responsible finance and consideration of broader societal goals continues to resonate with policymakers and economists.

Tobin's contributions to monetary theory have also had a lasting impact. He advocated for a more active role of monetary policy in stabilizing the economy, emphasizing the importance of managing aggregate demand through appropriate fiscal and monetary measures. Tobin's research on the "portfolio balance model" provided insights into the relationship between interest rates, money supply, and asset prices. His ideas have influenced central banks' understanding of the transmission mechanism of monetary policy and the role of financial markets in shaping macroeconomic outcomes.

Beyond his academic contributions, Tobin was known for his engagement in public policy debates. He advocated for responsible and ethical finance, highlighting the need for financial regulation and the importance of financial stability. Tobin's views on financial market reforms gained prominence during the global financial crisis of 2008, where policymakers and economists revisited the need for effective regulations and measures to prevent systemic risks.

Tobin's intellectual legacy extends beyond his research and policy recommendations. He played a pivotal role in mentoring and inspiring a generation of economists, fostering a commitment to rigorous analysis and addressing real-world economic challenges. Many of his students and colleagues went on to become influential figures in academia, policy institutions, and financial markets.

James Tobin's contributions to economics have shaped our understanding of macroeconomic dynamics, monetary policy, and responsible finance. His ideas continue to guide policymakers, economists, and financial practitioners in their pursuit of sustainable economic growth and financial stability. Tobin's vision of a more equitable and responsible financial system serves as a constant reminder of the importance of considering broader social goals alongside economic prosperity.

Eugene Fama: The Father of Modern Finance and His Practical Applications

Eugene Fama, often referred to as the "Father of Modern Finance," has made profound contributions to the field of finance through his groundbreaking research and practical applications. Fama's work has revolutionized our understanding of asset pricing, market efficiency, and portfolio management. Let's explore some of Fama's key theories and their practical applications in the world of finance.

One of Fama's most influential contributions is the Efficient Market Hypothesis (EMH). According to EMH, financial markets are highly efficient, meaning that prices fully reflect all available information. This theory has important implications for investors and fund managers. If markets are indeed efficient, it suggests that it is nearly impossible to consistently outperform the market by picking individual stocks or timing the market. Instead, investors should focus on building diversified portfolios and capturing broad market returns through passive index investing. Fama's research on EMH has influenced the rise of index funds and the popularity of passive investing strategies.

Fama's work on the Three-Factor Model is another notable contribution to finance. The Three-Factor Model extends the traditional Capital Asset Pricing Model (CAPM) by incorporating additional factors that explain stock returns. Fama and his co-author, Kenneth French, identified two additional factors, namely the size of the company (small vs. large) and the company's value (high book-to-market ratio vs. low book-to-market ratio). This model helps investors understand the sources of risk and expected returns in the stock market. It has practical implications for asset allocation and portfolio construction, as investors can tilt their portfolios towards small-cap and value stocks to potentially enhance long-term returns.

Fama's research on market anomalies and behavioral finance has also influenced the practice of investing. He has highlighted the existence of various market anomalies, such as momentum and value effects, which contradict the efficient market hypothesis. These anomalies suggest that certain investment strategies can outperform the market over certain time periods. Fama's work has spurred further research into understanding the underlying causes of these anomalies and their practical implications for investors.

In addition to his academic contributions, Fama has also played a crucial role in the development of practical investment strategies. He co-founded Dimensional Fund Advisors (DFA), an investment management firm known for its evidence-based approach and implementation of Fama's research findings. DFA's investment strategies are built upon Fama's principles of market efficiency, factor investing, and low-cost portfolio management.

Fama's research and practical applications have had a profound impact on the field of finance, influencing both academia and industry professionals. His work has provided investors with valuable insights and tools to make informed decisions and construct portfolios that align with their investment goals. Fama's enduring contributions continue to shape the way we approach investing, emphasizing the importance of market efficiency, diversification, and evidence-based strategies for long-term success.

Bull Market or Prepare for the Bear?

So stock prices are reaching dizzy heights once more with positive news coming out of the US.  But there are still dark clouds hanging overhead.  The debt ceiling and euro crisis are just some of the larger issues that has not been settled. Heard about the news of Germany intending to bring back its gold from US back to its own country?

The STI is now around 3,291.  That is almost close to the pre-financial crisis levels.  And what good news is there to push the stock market up higher?  Are we in a late bull run or is this going to be start of the bear market soon?.    

United Engineers Launches Rival Bid for WBL - Another F&N in the making?

United Engineers (UE) is launching a takeover bid for WBL Corporation.  Will this be like another F&N?  UE's last done price was $3.33 while WBL's last done price today was $4.20.  Looking at UE's price chart over the past few months, one wonders whether there might have been some leakage of news.  The share price of around $2.40-$2.50  rose sharply from Nov 2012 onwards to today's current price of $3 over dollars.  There was also a significant spike in volume.

Anyway, UE is looking for more recurring income and thus is looking to use up its war chest of money to buy WBL which has businesses spanning automotive, property and technology.  Considering that UE is mainly involved in property development, they might be interested in spinning off some of these businesses subsequently.  But that is probably anyone's guess.

It looks like the stock price of both UE and WBL is only likely to surge as shareholders await for the bidding price to go up just like the case of F&N.

Investment Ideas for Financial Freedom

A lot of ideas have been developed and contributed to the world of finance over the years. These include scholarly articles and books about money, investment and wealth.

It is one of my goals to compile all these ideas into this site so as to further develop and integrate these ideas into my own investment strategy and journey.

The list of famous people that I would like to learn from include the following:

Scholars and Their Ideas
1. Charles Dow
2. Louis Bachelier
3. Harry Markowitz
4. William Sharpe
5. Eugene Fama
6. James Tobin
7. Alfred Cowles
8. Franco Modiliani
9. Merton Miller
10. Burton Malkiel
11. Nicholas Nassim Taleb
12. Barr Rosenberg
13. John Lintner
14. Jack Treynor
15. Fisher Black
16. Paul Samuelson
17. Robert Merton
18. John McQuown
19. James Vertin
20. Hayne Leland
21. Mark Rubinstein

Investors/Traders and Their Ideas
1. Warren Buffet
2. Jim Rogers
3. Philip Fisher
4. Alexander Elder
5. Jesse Livermore
6. Peter Lim

Businessmen and Their Ideas
1. Donald Trump
2. Richard Branson
3. Bill Gates
4. Robert Kiyosaki (Rich Dad, Poor Dad)


Help me expand this list! Any suggestions would be welcomed.

Financial Knowledge

I believe that to achieve financial freedom, one must strive to gain financial knowledge.
Nowadays, one can simply gain financial knowledge by searching the internet and looking online for ways to invest, save money, etc.

I am compiling a list of financial websites/resources specific for the Singapore audience.

Banks
Citibank
DBS
HSBC
UOB
OCBC
RBS
POSB
Standard Chartered
Maybank
ABN Amro
finatiq.com

Unit Trusts
Fundsupermart
finatiq
Stock Brokers/Trading Platforms
POEMS
UOBKayHian
DBSVickers



The author currently has a POSB account, Maybank account, defunct OCBC account, Citibank account, Fundsupermart account and a UOB Kayhian account