The Disciplined Trader

Submitted by Book Library on 19 March, 2010 - 17:35

The Disciplined Trader helps you join the elite few who have learned how to control their trading behavior (the few traders who consistently take the greatest percentage of profits out of the market) by developing a systematic, step-by-step approach for winning week after week, month after month.

The Disciplined Trader is divided into four parts:

  • An overview of the psychological requirements of the trading environment
  • A definition of the problems and challenges of becoming a successful trader
  • Basic insights into what behavior may need to be changes, and how to build a framework for accomplishing this goal
  • How to develop specific trading skills based on a clear, objective perspective on market action.

In a comprehensive and logical manager, Mark Douglas shows you how to examine and limit your trading behavior - how to develop the mental discipline possessed by the small minority of winners who make money consistently (weekly, monthly, and yearly). Some of the skills focused on in The Disciplined Trader: Developing Winning Attitudes include: learning the positive dynamics of achieving goals, recognizing skills needed to progress as a trader (and how to stay aware of them instead of just the by-product the money acquired), adapting yourself to respond to fundamental market changes, identifying your 'risk comfort level' and learning how to expand it, acting immediately on opportunities, letting the market tell you how much is enough, controlling your perspective of market movement, and much more.

Positive Review of The Disciplined Trader

As I read the reviews of The Disciplined Trader, it seemed that there were two groups of reviewers: the group that just loved the book and the (small) group that hated it. After reading it, I found that the solution to this phenomenon was the following: to truly understand the book, you need: 1) To understand, that this book is not going to present you a clear trading plan or any technical knowledge whatsoever.

It's about the mental aspects of trading. 2) A certain level of intellect (not that it is very hard to read, but I'm sure it is too difficult to understand for some). 3) (a lot of) trading experience. You can only appreciate and understand the book, if you can relate to the mental processes and experiences that are presented in this book. Once these three conditions are satisfied, I'm sure you'll just LOVE this one.

Negative Review of The Disciplined Trader

I bought the book because of its title "disciplined Trader", as everyone knows discipline is key in trading, unfortunately this book teaches you nothing about discipline, why it is important or how to achieve it. It has a very complex writing style, talks a lot about psychology (which is also very important in my opinion), but gives no clear picture of what is important or even what the author wants to say. A useless book. A lot of the positive reviews about the book seem planted to me. I am a Professional trader and cannot see how anyone can benefit from this book.

Author Biography

Mark Douglas, a former commodities broker, is president of a Chicago-based training organization. He conducts seminars and workshops on the techniques from this book.

Table of Contents

  1. Part 1: Introduction
    • Why I wrote this book
    • Why a new thinking methodology?
  2. Part 2: The nature of the trading environment from a psychological perspective
    • The market is always right
    • There is unlimited potential for profit and loss
    • Prices are in perpetual motion with no defined beginning or ending
    • The market is an unconstructed environment
    • In the market environment, reasons are irrelevant
    • The three stages to becoming a successful trader
  3. Part 3: Building a framework for understanding ourselves
    • Understanding the nature of the mental environment
    • How memories, associations, and beliefs manage environmental information
    • Why we need to learn how to adapt
    • The dynamics of goal achievement
    • Managing mental energy
    • Techniques for effecting change
  4. Part 4: How to become a disciplined trader
    • The psychology of price movement
    • The steps to success
    • A final note

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