Psychology and Discipline of Trading

Here's a copy of a manual on the psych and discipline of trading ... straightforward and useful for folks new to trading as well as "old timers." It's in MSWord doc format. Also, I think Bruce listed a book or two (forgot the title even though I probably have it in my library). This one, I think, is written with stock day trading in mind, but all of the same principles and dynamics apply I think.

Just trying to add some value here, ha!

I've contacted the author (Barry Rudd) of the document that MonkeyMeat posted and confirmed that he has given MonkeyMeat permission to post this copyright material.

Trading also includes some serious mental emotional gymnastics. Would like any feedback on this doc as well as what others can post here. Good for all I think!

I too think psychology should not be underestimated

I thought this was a good article. I especially appreciated the humor and wit that the other included making a somewhat boring topic easy and enjoyable to read. I had previously posted this in a different thread, but it is worth posting again.

Any book recommendations on psychology of daytrading?

Originally posted by itzak
Any book recommendations on psychology of daytrading?

"Trading in the Zone" by Mark Douglas

There are many characteristics and skills required by traders in order for them to be successful in the financial markets.The psychological aspect of trading is extremely important, and the reason for that is fairly simple. A trader is often darting in and out of stocks on short notice, and is forced to make quick decisions.

Thank you for the manual MonkeyMeat.

Besides money management, I would imagine that proper trade psychology is one of the most important aspects of being a successful trader. Learning to get a handle on your emotions and dealing with greed/fear, I think, is more important than any of the setups or methods you use to get you in and out of your trades.

It seems like most new traders are obsessed with the "system" and forget that the human element will undoubtedly get in the way at some point. Knowing when this is happening and learning how to deal with it is essential to excelling at the skill of trading.

This book is brilliant.
Another great one is: 'Trading in the Zone'
by Mark Douglas.

But this ebook contains points not mentioned in
Mark's book.

I hope you read both , many times.

With Discipline as your best Trading Friend,
you are already on the success path- and with
a good friend as well.
Cheers,
G-88
*

Hey Greg,

I'd posted that "book" a while back. Also, I posted some text from "Trading in the Zone" more recently that I also felt really captured some of the core issues related to trading from the mental/emotional/psychological/discipline perspective. In other words, after re-reading it, I pulled out what I thought were the most important components relevant to every trader and trading in general. (wish I had the link, but I don't ... Guy, help?)

If you had to pull out some of the key lines or paragraphs from the book link, what would they be. Perhaps it'd resonate with my own trading as well as others. Just curious ... based on the hard core stuff we all deal with implementing our trading strategies.

You've got to have discipline in any industry but none more so than trading.
Proper money management
Waiting for your poi's to react
Patience is 🔑