Trading in the Zone
In Trading in the Zone, Douglas uncovers the underlying reasons for lack of consistently profitable trades and helps traders overcome the deep-rooted mental habits that cost money. Douglas takes on the myths of the market and exposes them, one by one, teaching traders to look beyond random outcomes, to understand the true realities of risk, and to be guided by and be comfortable with the 'uncertainty principle' that governs all stock speculation.
Trading in the Zone introduces a whole new mental dimension to getting an edge on the market. Use it to leverage the power of the 'zone' for unprecedented profit.
Publish date: 2001
Great book. Ranked among my top 5.
Absolutely essential reading
Picks up where other books leaves off
That is the major premise of this book. If it sounds like wishy-washy psycho-babble to you, I'll only say that I would have agreed -- four months ago, before I quit my 20-year technology career, obtained a Series/7 license and joined a professional day-trading firm. I now believe most people would lose money if you gave them 50/50 odds on whether or not it was going to rain tomorrow.
In other words, successfully forecasting the market is not enough. Why not? Well, this book explains why not. It has to do with one's sense of self-worth, one's moral judgment of money, one's work-ethic, one's tendency to focus on good news while ignoring bad, and other things.
"Zone" was recommended to a friend of mine by a professional floor trader who told him, "I wish I had read it before starting two years ago. Don't place another trade until you do." Well said. Does this apply to investors as well as traders? Oh, absolutely! If you have ever said to yourself, "I'm not selling that stock while it's down, I'll wait until I have a profit in it," then for the love of money, read this book.
Finally, read "Zone" before Douglas' earlier work. If you still want more then read "Disciplined Trader" for a general review plus a deeper exploration into the author's philosophical and meta-physical theories
Must Read For All Traders
Good but redundant
Trading in the Zone (TITZ) is about the psychology of trading. It is widely considered as one of the "must reads".
The Good bits:
The salient points in TITZ are wholly relevant to anyone embarking upon, or intent on maintaining, a succesful career in the role of speculator. The author succesfully described the various flaws in thinking that can work against a trader and cause him to act in a manner at odds with his objective.
The Bad bits:
TITZ contains one or two key points. The delivery of these two points, however, is pretty dreadful. The important points that he does make are repeated again and again and again. It beggars belief.
At one point, Mr. Douglass draws a parallel between human tears, negative emotion... and Mr Douglas argues that tears are made of negative ions. I kid you not.
Do not get me wrong: TITZ is worth buying and reading. There are legitimate points and suggestions that any trader would do well to consider.
On the other hand, the arena for this type of trading book has changed since its publication. Other books exist that address the issues contained within TITZ: not only are they more comprehensive, but the better ones suggest action plans and techniques that are immediately applicable.
TITZ is not a panacea. Read it for good measure, but other books are better.
The book you need as a private investor or retail trader!
Strangely, Trading In The Zone is the book that you don't want but, ironically, it is the book you that you need! There are no money-making strategies, no secrets about what data releases will result in massive movements to make you ultra profitable, no tips about which markets lead others. It is about understanding yourself so that you take responsibility for every trade and behave in a rational manner when dealing with an often irrational market.
If you only ever read one book, then this must be the title to read.
A second book from the Author.
This is the best trading book you could ever apply to trading, and to life!
The nature of reality
There are no charts in this book, no indicators, no discussion of setups, edges, or lowest risk entries. This is a book about becoming the house, the casino, about playing the probabilities, about letting go of the need to be 'right' in any given moment. It's about learning to think about market action in a way that can bring consistent results and learning how to trust yourself.
If you've spent some screen time, and studied fundamental and/or technical analysis, and still can't get above break even, this book might be the one that get's you over the hump.
I think the writing could be tighter, smoother, and less repetitive, but I still rate the book 5 stars overall. It's worth twice the price, and my only wish is that I had bought it earlier. This is one of the few books that has already found its way into my 'keeper' shelf.
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