As reviewed on the Traders Library Blog.
This book turns every day stresses into successful attitudes and behaviors. Learn specific methods and tactics for overcoming your losing attitudes.
[Back to top]
"Emotions kill successful trading."
In The Disciplined Trader, Mark douglas, an expert on the dynamics of trading, shows why most traders are unprepared for the different-often alien-strategies required for success in the
With rare insight based on his first-hand commodity trading experience, the author demonstrates why the beliefs learned to function effectively in society are often formidable
psychological barriers in trading. After examining the causes for the development of losing attitudes, the book prepares the reader for a thorough "mental house cleaning" of deeply rooted concepts and traditional thought processes. And then it shows the reader how to develop and apply attitudes and behaviors that
transcend psychological obstacles and lead to success.
The Disciplined Trader helps you join the elite few who have learned how to control their trading behavior (the few traders who consistently take the greatest percentage of profits out of the market) by developing a systematic, step-by-step approach for winning week after week, month after month.
The Disciplined Trader is divided into four parts:
- An overview of the psychological requirements of the trading environment
- A definition of the problems and challenges of becoming a successful trader
- Basic insights into what behavior may need to be changed, and how to build a framework for accomplishing this goal
- How to develop specific trading skills based on a clear, objective perspective on market action
In a comprehensive and logical manner, Mark Douglas shows you how to examine and limit your trading behavior-how to develop the mental discipline possessed by the small minority of winners who make money consistently (weekly,monthly, and yearly).
Some of the skills focused on in The Disciplined Trader include: learning the positive dynamics of achieving goals...recognizing skills needed to progress as a trader (and how to stay aware of them instead of just the by-product--the
money acquired)...adapting yourself to respond to fundamental market changes...identifying your "risk comfort level" and learning how to expand it...acting immediately on opportunities...letting the market tell you how much is enough...controlling your perspective of market movement...and
[Back to top]
Table of Contents:
PART I INTRODUCTIONS
1 Why I Wrote This Book
2 Why a New Thinking Methodology?
PART II THE NATURE OF A TRADING ENVIRONMENT FROM A PSYCHOLOGICAL PERSPECTIVE
3 The Market is Always Right
4 There is Unlimited Potential for Profit and Loss
5 Prices are in Perpetual Motion with No Defined
Beginning or Ending
6 The Market is an Unstructured Environment
7 In the Market Environment, Reasons are
8 The Three Stages to Becoming a Successful
PART III BUILDING A FRAMEWORK FOR UNDERSTANDING
9 Understanding the Nature of the Mental
10 How Memories, Associations, and Beliefs
Manage Environmental Information
11 Why We Need to Learn How to Adapt
12 The Dynamics of Goal Achievement
13 Managing Mental Energy
14 Techniques for Effecting Change
PART IV HOW TO BECOME A DISCIPLINED TRADER
15 The Psychology of Price Movement
16 The Steps to Success
17 A Final Note
[Back to top]
BOOK REVIEW by Jaye Abbate, Traders' Library
The Disciplined Trader by Mark Douglas
Year after year Mark Douglas' classic "The Disciplined Trader" is one of the most highly recommended books for active investors and traders. Regardless of market climate or new developments like the rise of the online investing, this book remains every bit as relevant today, and continues to be a "must read" by top traders around the world.
Nothing kills a successful trade like emotions, the saying goes. And most traders are actually unprepared emotionally for the trading environment - as it requires you to discard much of what we're taught is important to function effectively in regular society. With deep insight "The Disciplined Trader" clearly explains exactly what is needed to overcome losing attitudes and psychological barriers, and come out a disciplined, consistently better trader.
Broken down into 4 sections, the book takes readers step-by-step through a complete "mental house cleaning" in an attempt to rid readers of deep-rooted, traditional thought processes. First, Cook provides an overview of the psychological requirements needed to win in the trading environment. The second section outlines challenges and problems inherent in becoming a successful trader - plus a host of on-target, usable solutions. Part three focuses on finding which behaviors you need to change to succeed more consistently in the market - followed by key steps for accomplishing this goal. And finally, Cook shows how to develop specific trading skills based on a clear, objective analysis of the markets.
Only a small percentage of people consistently triumph in the markets - be it bull OR bear market conditions - and they are overwhelmingly the ones that possess the mental discipline required to survive even choppy, unpredictable markets. Cook's book highlights the skills you must develop to become a "Disciplined Trader," including ....
- Mastering the "positive dynamics of achieving goals"
- Gearing yourself to respond responsibly to market changes, even if they throw your original "plan" off
- Pinpointing your "risk comfort level" - and learning to expand it
- Seizing opportunities immediately - "letting the market tell you how much is enough" - and much more.
Many traders read this book early in their trading career and pick up one or two tools for their trading arsenal. But most traders find they understand and benefit from the book even more upon second reading - or after they've actually been trading for awhile and can recognize in themselves many of the behaviors Cook targets as characteristics to change. It's simple, straightforward, and to the point - and has helped traders for decades sharpen their trading instincts and skills. No true trading library should be without a well-worn copy.
[Back to top]