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JBahn

Suggestions for Trading Psych Book?

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Hello

 

I am looking for some books on psychology and was hoping for some suggestions.

 

I was a hedge fund trader for 3 years and just recently began trading my own account. Although I am profitable I run into a lot of head wind when it comes to my though processes during the day. Among my major problems are adjusting my stops after the fact and cutting winners way too early. These are problems that are just beginning to manifesting since I find trading my personal money a much more difficult game than trading OPM. Fear and Greed in a trader...imagine that:-)

 

Anyways, I just finished Mark Douglas' "Trading in the Zone". I think the book did a good job at helping me realize the basis of some of my problems, however I found the book a bit long-winded and lacking in content when it comes to actually dealing with my problems.

 

I am hoping to get some suggestions for other books you may have read that have helped you.

 

Thanks in advance

 

Cheers - Brian

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Hi Brian I found that van tharps home study course helped a lot .I did the evaluation and have been through the course several times which has helped me develop my plan and acknowledge my weaknesses and slowly work on them.

 

Good luck

 

Ben

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The first book you listed was the one I have been eyeing. The amazon reviews look decent, but most seem to be written by people who are just starting out in trading.

 

Do you have an experience with that book?

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The first book you listed was the one I have been eyeing. The amazon reviews look decent, but most seem to be written by people who are just starting out in trading.

 

Do you have an experience with that book?

 

Yes,Steenbarger is one of the very few HONEST guys in this game. If you have been eyeing his book, I would definitely recommend that you read it. I can bet for sure that you will not regret doing that.

 

Here is the link to his blog - TraderFeed

Just spend some time on it and you will get a fare idea, if this guy is worth spending your time or not. Although he has stopped updating his blog, still it has got a lot of good information.

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Dear Jbahn

Most trading psychology books are boring and "Trading in the Zone" is the worst.

You dont want to read another boring book.

I believe the actual trading process is the problem. You doubt your entries and exits.

So its all in the mind DOUBT

And until you trust your trading process, you are f.....

Resolve YOU WILL NOT FAIL

No distractions

Detailed Trading Plan, and start with RISK

Stick to it - thats discipline

And the holy grail - Patience

- wait for pullbacks

So if discipline is the problem, you dont need a book on Trading Psychology, you need a book on discipline

bobcollett

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Hello

 

I am looking for some books on psychology and was hoping for some suggestions.

 

I was a hedge fund trader for 3 years and just recently began trading my own account. Although I am profitable I run into a lot of head wind when it comes to my though processes during the day. Among my major problems are adjusting my stops after the fact and cutting winners way too early. These are problems that are just beginning to manifesting since I find trading my personal money a much more difficult game than trading OPM. Fear and Greed in a trader...imagine that:-)

 

Anyways, I just finished Mark Douglas' "Trading in the Zone". I think the book did a good job at helping me realize the basis of some of my problems, however I found the book a bit long-winded and lacking in content when it comes to actually dealing with my problems.

 

I am hoping to get some suggestions for other books you may have read that have helped you.

 

Thanks in advance

 

Cheers - Brian

 

I like Dr. Ari Kiev's books. They are more practical and offer great insight into the traders Psychology. I also like Rooth Barrons Roosvelt and Dr. Steenbarger books and his Blog.

 

Regards,

Suri

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I just read Dr. Ari Kiev’s book “The Psychology of Risk” for a second time. It really was a game changer for me. A little understanding goes a long way.

 

I read both of Mark Douglas’ books. They were not practical for me. The books was enjoyable but did little to help my trading.

 

Also read Brett Steenbarger’s “Enhancing Trader Performance.” It had great info on tracking your performance, but not much “ready to use” info there to deal with psychological challenges. I also followed his TraderFeeder blog when it was updated. It seamed like a lot of psychological ‘gobbly gook’ - just my opinion. He has some nice technical indicators though.

 

Good Luck

dVL

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Hello

 

I am looking for some books on psychology and was hoping for some suggestions.

 

I am hoping to get some suggestions for other books you may have read that have helped you.

 

Thanks in advance

 

Cheers - Brian

 

Mindful Trading: Mastering Your Emotions and the Inner Game by Rande Howell. Available at www.tradersstateofmind.com

 

He's an educational contributor to the Money Show's trader education trade shows and understands emotion and peak performance in a game changing way.

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Any suggestions or book recommendations on dealing with discipline problems?

 

ie overtrading, impulse trading, not following plan/rules, impatience, chasing, always wanting to be in a trade, etc.

 

Yeah get a coach or what I do is go through a few questions like ;

 

whats working?

whats not working?

what do I need to let go of to get my trading working?

what do I need to take on to get my trading working?

who am I being around my trading?

who am I required to be to get my trading working?

 

If that does not work seeking counseling with someone who will tell you striaght what they see is going on. Friend or Professional, you'll know when you have it sorted as your trading will improve.

 

cheers

 

1pipatatime

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If you really think you have psychological issues, you should get an assessment done by a professional. If there is something wrong with you that is detrimental to trading, then you simply shouldn't trade. If there is nothing wrong with you, then reading a trading psychology book isn't going to help. All of those books have the authors bias as to how you should think if you want to be a successful trader. The author is not a successful trader so his guess at how one should think is as good as yours.

 

There is nothing wrong with your mind if you can''t make money trading or if you can't make enough money trading. It is a zero sum game that has entry and exit costs. It is simply difficult.

 

Most likely if you are coming up negative, then your plan probably has failure built into it and no matter what you do, you will continue to lose. If you are turning a profit, then there is nothing else to do but trade.

 

 

MM

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If you are interested in practical strategies to manage the emotions of trading, you can't beat Brett Steenbarger's The Daily Trading Coach: 101 Lessons for Becoming Your Own Trading Psychologist.

 

Although I very much enjoyed Steenbarger's two earlier books, they are more focused on the process of therapy and contain many stories about his own clients. His first book, The Psychology of Trading, focuses on the brief therapy model that Steenbarger's uses in his clinical work and draws on his experience with clients who are not necessarily traders. As a psychologist, I found this book great fun, watching a master at work, but I think that the information would be tough to translate into practical strategies for most traders.

 

That's where Steenbarger's third book, The Daily Trading Coach, comes in. The techniques and suggestions in this book are practical and doable. No matter where you struggle with the emotional aspects of trading, you'll recognize yourself in his descriptions and find a strategy that you can use.

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JBahn,

 

All the books suggested so far are good books I’m sure, but the key is finding one that speaks to you deeply. Below are a few bit more esoteric suggestions.

(These are not endorsements or testimonials for these (or any of the books others have listed). For example, I’m sure they are good books but I have had Kiev books on my shelves for decades and have, at most, only skimmed and maybe never even opened them. Same with Brett S.'s books...)

Just trying to give you some options…

 

Both these authors have similar path to yours - money managers turned increasingly solo.

(But that doesn’t mean they will have sufficient compatibility with you – still hth)

 

The Psychology of Technical Analysis: Profiting From Crowd Behavior and the Dynamics of Price (9781557385437) Tony Plummer

 

See the chapter on fears, emotions, etc. Plummer also has a good article based on the enneagram re emotions, trading psychology, etc.

 

The 21 Irrefutable Truths of Trading: A Trader’s Guide to Developing a Mind to Win (9780071357890): John H. Hayden

 

The psychology section of this book is oriented toward ‘character / virtues’ based trading

 

Also see

 

The Secrets to Emotion Free Trading by Larry Levin

 

Not even sure why anyone would really want emotion free trading :) but we know what he's getting at...

Again, haven't read this... but it may help you... who knows?

 

etc.

 

You may find your best path is ‘off the ranch’ in content not specifically for traders. PM me if you want suggestions. hth. All the best.

 

zdo

Edited by zdo

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zdo has good book examples... I remember reading few books from that list.

 

Few years ago, I liked this book "How to Become A Successful Trader" by Dr. Ned Gandevani. He profiles trader types using some tests.. I recommended this book to few of my friends... some hated it and some liked it. I liked it and thought it had practical ideas. I also know Dr. Gandevani has new books but I have not read them.

 

Regards,

Suri

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JBahn,

 

You may find your best path is ‘off the ranch’ in content not specifically for traders. PM me if you want suggestions. hth. All the best.

 

zdo

 

I have read many psychology/motivation books which are not directly related to trading and I think they are great...

 

Few books from my memory:

'Maxwell Maltz' books ...still have his book on Audio CDs.

 

Recently I read a book "Confidence: How Winning Streaks and Losing Streaks Begin and End" by Rosabeth Moss Kanter, which is excellent.

 

The Predictors: How a Band of Maverick Physicists Used Chaos Theory to Trade Their Way to a Fortune on Wall Street by Thomas Bass ... Fun read

 

When Genius Failed: The Rise and Fall of Long Term Capital Management by Roger Lowenstein

 

Who Moved My Cheese?: An Amazing Way to Deal with Change in Your Work and in Your Life by Spencer Johnson and Kenneth Blanchard.. Excellent book for every one.

 

Regards,

Suri

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Trading does not come natural to the human brain. It has to be learned. A chuck of this is the psychology of self. Separating uncertainty from worry and fear is something that your brain (or the socialization of your brain) was never designed for. So if you're having difficulty moving one set of psychological skills that proved okay successful in one domain of your life to trading, welcome -- this is typical. There is nothing "wrong" with you. But it does indicate that the "you" that your brain has organized you as needs to be changed. That's all. The mindset for the vast majority of traders has to be developed. Particularly the management of uncertainty and the meaning that become embedded the meaning making pathways of your brain. This is where you will find your self limiting beliefs about yourself. It is the mindset that you take into uncertainty (that's trading) determines the probability of success. Evolutionary and psychological bias, in the vast majority of traders, will have to be examined and changed for this to occur. It takes emotional labor, and that's the price for re-development of the self designed for trading. It's a great personal development adventure.

Rande Howell

www.tradersstateofmind.com

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Trading does not come natural to the human brain. It has to be learned. A chuck of this is the psychology of self. Separating uncertainty from worry and fear is something that your brain (or the socialization of your brain) was never designed for. So if you're having difficulty moving one set of psychological skills that proved okay successful in one domain of your life to trading, welcome -- this is typical. There is nothing "wrong" with you. But it does indicate that the "you" that your brain has organized you as needs to be changed. That's all. The mindset for the vast majority of traders has to be developed. Particularly the management of uncertainty and the meaning that become embedded the meaning making pathways of your brain. This is where you will find your self limiting beliefs about yourself. It is the mindset that you take into uncertainty (that's trading) determines the probability of success. Evolutionary and psychological bias, in the vast majority of traders, will have to be examined and changed for this to occur. It takes emotional labor, and that's the price for re-development of the self designed for trading. It's a great personal development adventure.

Rande Howell

www.tradersstateofmind.com

 

With all due respect, you have it completely backwards. We are born with the skills to trade and through social interactions and a moral upbringing, you unlearn the skills and mindset that are best for trading. Look at a preschool and you will see some of the best traders you will ever see. The level of selfishness they possess is far closer to what is needed to trade than that of a developed adult.

 

As a simple example: if a toddler/child sees another child with a toy that he wants he may simply go over and take it because he wants it. The child will then be taught that you don't do that to others and eventually he will " correct" that behavior. However, that is one of the types of behaviors a trader needs in the market. You see it, you take it. You would be appalled if you were at a party and I approached you and took your drink from you because i wanted it. because we have learned that this is socially unacceptable behavior.

 

If you are taking for selfishness or need, there is no such thing as fear. If you are uncertain about why you are taking, then you have fear.

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zdo - very good addition to this thread. I am adding a few of those to my reading list.

 

Mightmouse - you in Trumbull, CT? I just moved from Trumbull about a year ago. Used to live on Tashua Rd down by the old church.

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Brian

 

Mark Douglas is a must read. He describes well what a peak performance state of mind looks like for trading. The problem is that you are not shown HOW to develop the mindset.

 

It is somewhat self serving, but I encourage you to check out my book, Mindful Trading: Mastering Your Emotions and the Inner Game. Traders tell me that it really gets into the head of a trader and shows the tools and skills needed to evolve as trader. An excerpt from the book can be read for free by clicking here.

 

Trading is an exciting path to self development. Avoiding your psychological demons is impossible because they staulk you. I wish you well.

 

Rande Howell MEd, LPC

www.tradersstateofmind.com

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Rande - always love to hear from an author themselves. I will definitely check out your book.

 

You're welcome. Trading is a serious undertaking. I like being in the trenches with people who are taking trading seriously.

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