What are you reading [Trading related!]

chilltrader

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Intention of this thread:

a) Get a brief on what people are reading.. mostly during weekends / spare time / or
possibly in-between trades.

b) Maybe a few lines on how they find the material so far..

c) Is it working from them
 
Quiet Saturday for me... sitting with "Trading in the Zone" by M.Douglas... looking good so far.
 
I've just finished reading "come into my trading room" for the second time (by Dr Alexander Elder). I think it's a brilliant book and have the study guide that goes along with it.

The best thing i've learnt from it has been how to 'grade' my performance on a trade, A, B, C etc. In aiming for the A grade trade everytime i have learnt to look for only the best opportunities and bide my time. No point struggling over a trade for ages if you only grab a couple of points out of it and that couple of points represents the extent of the move. (although you'd be hard pushed to find anything moving this slowly at the moment!). Also, the record keeping sections are good.
 
Intention of this thread:

a) Get a brief on what people are reading.. mostly during weekends / spare time / or
possibly in-between trades.

b) Maybe a few lines on how they find the material so far..

c) Is it working from them

I have read Reminiscences of a Stock Operator before, thought it was entertaining and interesting but not the "amazing" book that people make it out to be. So I am going to re-read it to see if I missed anything the 1st time round. [I also find it hard to take advice from someone who ended up blowing their brains out!].

I find that I need to re-read useful advice regularly so that it is at the forefront of my thoughts, otherwise I fail to act upon it. To save myself re-reading entire books repeatedly, I will copy the relevant bits into a Word Doc so I end up with really concise, relevant info that I can read quickly.

Eg. my summary for Trading In The Zone is:

"HOW THE FUNDAMENTAL TRUTHS RELATE TO THE SKILLS":

1. Anything can happen.
(There are always unknown forces operating in every market at every moment.)
2. You don’t need to know what is going to happen next in order to make money.
(Trading is just a probability game; concepts like right/wrong win/lose have no significance.)
3. There is a random distribution between wins and losses for any given set of variables that define an edge.
(Trading is a probability game so every loss puts you that much closer to a win.)
4. An edge is nothing more than an indication of a higher probability of one thing happening over another.
(Creating consistency requires that you completely accept that trading isn't about hoping, wondering, or gathering evidence one way or the other to determine if the next trade is going to work. The only evidence you need to gather is whether the variables you use to define an edge are present at any given moment.)
5. Every moment in the market is unique.
(Our minds are hardwired to automatically and unconsciously associate anything in the exterior environment that is similar to anything that is already inside of us in the form of a memory, belief, or attitude. No two moments in the external environment will ever exactly duplicate themselves. This creates an inherent contradiction between the way we naturally think about the world and the way the world exists. The stronger your belief in the uniqueness of each moment, the lower your potential to associate. The lower your potential to associate, the more open your mind will be to perceive what the market is offering you from its perspective.)

I AM A CONSISTENT WINNER BECAUSE:
1. I objectively identify my edges.
2. I predefine the risk of every trade.
3. I completely accept risk or I am willing to let go of the trade.
4. I act on my edges without reservation or hesitation.
5. I pay myself as the market makes money available to me.
6. I continually monitor my susceptibility for making errors.
7. I understand the absolute necessity of these principles of consistent success and, therefore, I never violate them.

At any given moment, if we are in a state of satisfaction or happiness in relation to whatever we are attempting to accomplish, we can say that our truth (meaning our belief system) is useful because the process worked. What we perceived was consistent with our objective and with what was available from the environment's perspective. Our interpretation of the information available resulted in a decision, expectation, and action that were in harmony with the environmental situation and circumstance. There was no resistance offered by the environment (or in our own mind) that would diminish the outcome we were trying to achieve.

On the other hand, if we find ourselves in a state of dissatisfaction, disappointment, frustration, confusion, despair, regret, or hopelessness, we can say that relative to the environmental situation and circumstances, the beliefs we are operating from don't work well and therefore are not useful. Simply put, the truth is a function of whatever works in relation to what we are trying to accomplish at any given moment.


I have found Trading In The Zone very helpful. In addition, this link posted by Rols was good:
..:: DO NOT TRADE ON ADRENALINE © ::..

For life in general: Think & Grow Rich by Napoleon Hill
 
I have read Reminiscences of a Stock Operator before, thought it was entertaining and interesting but not the "amazing" book that people make it out to be. So I am going to re-read it to see if I missed anything the 1st time round. [I also find it hard to take advice from someone who ended up blowing their brains out!].

I find that I need to re-read useful advice regularly so that it is at the forefront of my thoughts, otherwise I fail to act upon it. To save myself re-reading entire books repeatedly, I will copy the relevant bits into a Word Doc so I end up with really concise, relevant info that I can read quickly.

Eg. my summary for Trading In The Zone is:

"HOW THE FUNDAMENTAL TRUTHS RELATE TO THE SKILLS":

1. Anything can happen.
(There are always unknown forces operating in every market at every moment.)
2. You don’t need to know what is going to happen next in order to make money.
(Trading is just a probability game; concepts like right/wrong win/lose have no significance.)
3. There is a random distribution between wins and losses for any given set of variables that define an edge.
(Trading is a probability game so every loss puts you that much closer to a win.)
4. An edge is nothing more than an indication of a higher probability of one thing happening over another.
(Creating consistency requires that you completely accept that trading isn't about hoping, wondering, or gathering evidence one way or the other to determine if the next trade is going to work. The only evidence you need to gather is whether the variables you use to define an edge are present at any given moment.)
5. Every moment in the market is unique.
(Our minds are hardwired to automatically and unconsciously associate anything in the exterior environment that is similar to anything that is already inside of us in the form of a memory, belief, or attitude. No two moments in the external environment will ever exactly duplicate themselves. This creates an inherent contradiction between the way we naturally think about the world and the way the world exists. The stronger your belief in the uniqueness of each moment, the lower your potential to associate. The lower your potential to associate, the more open your mind will be to perceive what the market is offering you from its perspective.)

I AM A CONSISTENT WINNER BECAUSE:
1. I objectively identify my edges.
2. I predefine the risk of every trade.
3. I completely accept risk or I am willing to let go of the trade.
4. I act on my edges without reservation or hesitation.
5. I pay myself as the market makes money available to me.
6. I continually monitor my susceptibility for making errors.
7. I understand the absolute necessity of these principles of consistent success and, therefore, I never violate them.

At any given moment, if we are in a state of satisfaction or happiness in relation to whatever we are attempting to accomplish, we can say that our truth (meaning our belief system) is useful because the process worked. What we perceived was consistent with our objective and with what was available from the environment's perspective. Our interpretation of the information available resulted in a decision, expectation, and action that were in harmony with the environmental situation and circumstance. There was no resistance offered by the environment (or in our own mind) that would diminish the outcome we were trying to achieve.

On the other hand, if we find ourselves in a state of dissatisfaction, disappointment, frustration, confusion, despair, regret, or hopelessness, we can say that relative to the environmental situation and circumstances, the beliefs we are operating from don't work well and therefore are not useful. Simply put, the truth is a function of whatever works in relation to what we are trying to accomplish at any given moment.


I have found Trading In The Zone very helpful. In addition, this link posted by Rols was good:
..:: DO NOT TRADE ON ADRENALINE © ::..

For life in general: Think & Grow Rich by Napoleon Hill

Good point and well worth doing imo
This is the problem with a lot of books what can be said in 4 paragraphs is often padded out with hundreds of pages to the point where they can become boring.But that said a one page book wouldnt sell.

Regards
Graham
 
Forecasting Financial Markets by Tony Plummer

Quite mathematical at times and I think it's meant for position traders as it can help identify the end of things like bull cycles or a recession.

I did use it to predict that the FTSE would touch 5000 and the Dow would touch 10000 by January 2009. If I'd shorted when I predicted (March?), I'd be bloody well laughing my black socks off by now.

PS Yes, it's taken me over 8 months to read. It is very boring. And I find it hard to turn the pages with small paws.
 
As we're living through an historical moment I thought I'd read Extraordinary Popular Delusions and the Madness of Crowds.

Shocking stuff, I'd never heard of being broken on the wheel.

Now that's what I call a deterrent.

dd
 
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