Trading in the Zone: Maximizing Performance with Focus and Discipline

Trading in the Zone : Maximizing Performance with Focus and Discipline

Trading in the Zone expands psychological strategies for successful trading and represents three more years of experience in working with a variety of traders on issues ranging from portfolio size and strategy to traditional coaching issues pertaining to performance, motivation, and recovery from failure.

Author’s Introduction:

Trading in the Zone can be read as a sequel to Trading to Win or on its own. I have sought to further develop some of the principles outlined in my previous book, I have also taken this opportunity to:

• Add a longer-term view to the trading strategies discussed.
• Examine more mistakes that traders can make.
• Review basic trading strategies and examine more complex strategies.
• Demonstrate additional ways to increase a trader’s psychological edge.

This book has been written not only to assist the professional trader but also the ordinary amateur trader and day trader as well. Taking into account the increasing use of the Internet for trading, the applications in this book can be of assistance to the home trader who trades once or twice a week as well as the career trader doing it every day.

The relative ease of entry into day trading through Internet access to online brokerages, the easy access to stock market information, and the continuation of the biggest and longest bull market in history have set the stage for a lot of amateurs to get into trading.

Amateur traders may get hooked on trading because of a few quick and easy wins, much as people get hooked on gambling. Random wins and losses create an inconsistent pattern of reinforcement that is habit forming. They then begin to focus attention on finding winning stocks rather than on learning the process. They are also likely to eventually lose because they become anxious and unable to behave as flexibly as the successful trader.

Contents:

– Part One : Getting in the Zone

• Defining the Zone
• Overcoming the Past
• Using a Goal

– Part Two : Preparing for the Trade

• Gathering Information
• Understanding the Analysis
• Learning More

 – Part Three : Controlling the Risk

• Managing the Risk
• Tolerating the Pain

 – Part Four : Trading Consistently

• Learning from Your Mistakes
• Overcoming Psychological Obstacles
• Stepping Up to the Challenge

 – Part Five : Using Advanced Strategies

• Taking Advantage of Capitulation
• Short Selling