The Journey from Psychiatry to Professional Trading: Elder Dr. Alexander’s Story
Dr. Alexander Elder, a remarkable individual, has carved a unique path from a Soviet-born psychiatrist to a renowned trader and trading psychologist. This article delves into the fascinating journey of Dr. Elder, highlighting his early struggles and the pivotal events that set him on the course to become a professional trader and a successful investor.
Early Struggles and Escape to the United States
Dr. Alexander Elder’s journey began in the former Union of Soviet Socialist Republic (USSR), a system he vehemently opposed. Despite the hardships and the impossibility of emigration, Elder faced challenges and persevered. At the age of 16, he entered college and graduated from medical school at the age of 22. After completing his residency, Elder embarked on a journey aboard a Soviet vessel, which brought him to Abidjan, Ivory Coast. Facing the imminent risk of recapture, Elder and his crew willingly ‘jumped ship’ and made their way to the American embassy. The embassy then provided him with shelter and airfare to New York City, where he landed at Kennedy Airport in February 1974 with only 25 dollars to his name and a smattering of English.
In New York, Elder was alone, but his past experiences in stocks, bonds, and commodities futures and options would soon lead him to a pivotal moment. In the summer of 1976, as a first-year resident of psychiatry, Elder drove from New York to California with a few books on psychiatry, history, and finance, and a paperback of "How to Buy Stocks" by Louis Engel and Brendan Boyd. This book would change his life permanently.
Changing Course with 'How to Buy Stocks'
Elder finished the book on a Pacific beach in La Jolla, California, and was immediately enthralled by the principles he had read. Armed with this newfound knowledge, he bought his first stock and made money, albeit in his first trade. Shocked by his success, Elder made even more trades and profited in each one. However, it was his overconfidence that proved to be his undoing. It took Elder two years and numerous losses to overcome his initial biases and become a more grounded and successful trader.
From Psychiatry to Trading Expert
Despite his early setbacks, Elder continued to practice psychiatry but soon became known as a professional trader and a trainer of traders. His background in psychiatry provided him with valuable insights into the psychology of trading, which he incorporated into his ‘Traders’ Camps,’ week-long classes aimed at traders of all levels. Dr. Elder has authored numerous books on trading, with his seminal work, "Trading for a Living," first published in 1993, becoming a classic and an international bestseller. In 2024, 21 years after the initial publication, Elder has released a revised edition, which is almost a new book in its own right.
Conclusion
The journey of Dr. Alexander Elder from a Soviet-born psychiatrist to a renowned trader and trading psychologist is a testament to the power of perseverance and adaptability. His story highlights the importance of understanding the psychological aspects of trading and emphasizes the continuous learning required to navigate the ever-changing markets. Through his books and trading psychology techniques, Elder continues to inspire and educate a new generation of traders.