The Disciplined Trader is a comprehensive guide to understanding the psychology of self-discipline and personal transformation needed to become a successful stock or futures trader. This book will serve as a step-by-step guide to adapting successfully to the unusual psychological characteristics of the trading world.
The few successful traders who have, in some way, transcended these psychological obstacles have been generous with their one-line gems of trading wisdom: “Learn to take a loss,” “Go with the flow,” “The trend is your friend,” “Cut your losses and let your profits run,” “To know the markets you need to know yourself,” and on and on.
The Disciplined Trader fully explores, breaks down, and then organizes the psychological components of this advice into a step-by-step learning process, a process that takes you through the various stages necessary to orient yourself successfully to the trading environment.
The Disciplined Trader will explain to you what skills are necessary, why you need to understand them, and most important, how to go about learning them.
This book is organized in four sections. The first consists of the first two chapters and serves as an introduction. The second consists of Chapters 3 through 8 and defines the problems or challenges of becoming a successful trader. The third section consists of six chapters that will give you the basic insight you will need to identify what has to be changed in your mental environment and what you can do to change it.
The fourth section consists of Chapters 15 and 16 which put everything together into a unified framework to develop specific trading skills. You will learn how to observe market action from an objective perspective, determine where you need to limit yourself, and establish the steps you will need to take to expand those limitations in a productive and psychologically healthy way.
- The Nature of the Trading Environment from a Psychological Perspective
- Building a Framework for Understanding Ourselves
- How to Become a Disciplined Trader