Essentials of Trading written by Larry Pesavento along with his former student and now professional trader, Leslie Jouflas, is a wonderful compilation of articles written about all facets of trading. The articles exemplify the incredibly close knit connections of trading to real life! The articles include a broad spectrum of subjects from discipline to handling the unexpected in trading to all ranges of emotions experienced throughout a career in trading. The book is laced throughout with quotes from many walks of life, from famous artists to famous traders that are truly inspirational. ‘Essentials of Trading’ will inspire you and motivate you in your own trading. As the ancient saying goes – “A smart man learns from his mistakes, but the wise man learns from the mistakes of others.”
Trading while in a state of anger is a surefire recipe for disaster. Trading in anger takes two forms. First – anger against the market which traditionally leads to revenge trading by trying to recoup your losses because the market failed to meet your expectations! Markets are seldom wrong – men often are. If this type of anger is a frequent occurrence then you should seek professional help immediately. That type of anger is deeply seeded in the trader’s psyche and goes beyond the scope of this trader’s experience.
Anger coming from outside the market environment is more frequent and more easily identified and correctable. The source of this anger is usually related to personal relationships or outside business events. This can be as trivial as normal bill paying or car problems or parental responsibilities. Sometimes these are minor distractions and not anger triggered. Anger takes energy away from the responsibility of strict risk management. The trader must learn to acknowledge the presence of an outside distraction. Traders who use well thought out trade plans are less susceptible to distractions. Those without trade plans are at the mercy of the market. Some words of advice – if the anger is bothering you at any level take a break until the culprit is out of your system. It will prove to be the best trading decision of the day!
Essentials of Trading: It's Not WHAT You Think, It's HOW You Think By Larry Pesavento pdf
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