Trading Psychology

[awllee]

Dear All,
I now feel that trading psychology is really important in this game. The two most prominent human emotions which fail you are fear and greed as we all know.
I remember reading that Chartman found that by trading smaller positions, he was able to get rid of fear.. I've tried that and it works well for me.
However, I want to learn a bit more about trading psychology which I hope will help me in my learning and decision making.
Does anyone have any pointers? Decent books to look into? Or courses/seminars which you have found useful? Or just some of your thoughts I would really appreciate!

Thanks

AWLLEE

 

[zebra]

Hi Awllee,

Try and get hold of a copy of 'The Way of the Warrior Trader' by Richard D. McCall. It's not only a very good read but is written with Financial Traders in mind. It deals with fears, profits and the warriors traders 'Zen' mind. I think it may help you!

If you have any difficulty in finding a copy local to you,
visit: www.books.mcgraw-hill.com.

Regards,

Zebra.

 

[awllee]

Thanx

 

[Skimbleshanks]

The Way of the Warrior Trader is good, although some of it can be hard going, particularly all those Japanese words.

I got my copy from Global Investor - there's a link under the Learning button at the top of this page.

 

[CityTrader]

Try The disciplined Trader ( developing winning attitudes) by Mark Douglass.
Although I have to say, in 25 years of professional trading, the only 2 books, I have ever found to have added any value are:-
Reminiscences of a stock operator - Edwin Leferve , and
Market Wizzards _ Jack D Schwager
All available ( of course!) from Amazon

 

[awllee]

That's great! I am currently reading a book called The Day Traders by Millman and there's a bit in the book about a broker who kept a diary. This broker said that he realised when his emotions got in the way, his trades then went bad. However, when he was objective and mechanistic.. he done well.
Markets can only go up, down or sideways.... and with a bit of money management you should be able to do ok even if you chance it each time... however, still, 90% people lose. It's the fear and greed emotions into play and cause you to lose!!

 

[Helenqu]

Hi awllee,

I was going to recommend Douglas Trading the Zone and Vic Sperandeos Methods of a Wall Street Master. Both good on the psychology angle. Alex Elders Trading for a Living and Van Tharp Trade your Way to Financial Freedom are good too.

 

[eddyjo]

Hello everybody, What abig help to us beginners these BBs are
I think we should say abig THANK YOU to all subscribers. I learn
more here than most books I read. Eddy.

 

[awllee]

Yes I agree.. this is an excellent site for learning!