by Das Brain
I read the book “The Disciplined Trader” by Mark Douglas” a few months back, and was able to get a lot useful information from the book.
If you have been trading for a while, then you know that psychology is a big big part of trading. Doesn’t matter what kind of trading you do, equities, forex, bonds or futures the right frame of mind will make you a more consistent trader, than a trader who let their emotions control their itching mouse button finger.
In The Discplined Trader, Mark Douglas covers the following topics:
The Disciplined Trader by Mark Douglas helped me immensely in regards, to understanding the psychology behind support and resistance of prices and how the market is going to do what it is going to do. Meaning that you as a trader have absolutely no control over the market.As a trader you can only anticipate what is going to happen to the price action, but that prediction is conceive by you based on looking at a chart, the market owes you nothing and either will or won’t move in your favor.
One other interesting fact revealed in this book, that I found extremely useful was the distinction that in trading you can earn $1000 or more in five minutes or five days. The concept of getting paid based on how much time you put into things, like a job goes right out the window.You can spend a whole day researching one stock or commodity, looking at charts until your eyes pop out, but in the end the market decides what happens and your research can become useless, if the trade doesn’t go your way at all. This is a hard pill to swallow for most people, but it is all a part of trading.
I have only covered a few key topics in this book review. The Disciplined Trader is full of useful distinctions, that will help you understand your tendencies, why you trade the way you do, why you are not getting the type of results you want and more. In this book, Mark mentions that “All traders give themselves exactly what they deserve,” and I believe that.
For example if, I had an open position and did not define how much I was willing to risk and did not set a stop loss, and the market takes a huge downward hit, then the bigger loss was what I deserve for being lazy of not putting in the stop loss order.
This book is worth the read for anyone who started trading and has not read any books on trading psychology. I highly recommend The Disciplined Trader, if you want to become a better trader, you will only be doing yourself a favor by
reading this book.
StumbleUpon | Digg | Del.icio.us | Dzone | Newsvine | Spurl | Simpy | Furl | Reddit | Yahoo! MyWeb
