Trading in the Zone
by Mark Douglas, ISBN-13: 978-0735201446
It’s a hard truth about trading that you’re unlikely to get consistently good at it until you’ve experienced the dark side, that is, until you’ve you’ve had a sustained losing period which knocked your confidence for six and made you question whether you can really ever trade profitably.
It’s not until you’ve been through this that you can really appreciate the role of psychology in trading and this is where Trading in The Zone comes in.
Mark Douglas explains that your belief systems control the way you perceive the opportunity flow of the market, and that unless you approach a trade in the right frame of mind, your perception of the market will be skewed from what’s really happening. This will have a negative impact on your system and start a spiral downwards as fear and avoiding the pain of losing become the dominant emotions governing your trades.
Understanding this is your first step in turning your fortunes around, and the goal of the book is to allow you to approach your trades in a carefree and confident state, fully accept the risks and therefore fully and comfortably accept the outcome. In so doing, the next time you trade you will again be carefree and confident, reading the market accurately and executing your strategy with consistency.
I read this book twice, once in my early days and I didn’t appreciate it. I read it again when I had 18 months experience under my belt and it helped transform the way I trade.
The Day Trader Verdict: 8/10 Highly recommended