THE DISCIPLINED TRADER DEVELOPING WINNING ATTITUDES PDF
The Master Swing ecogenenergy.info - Trading Software master the market with confidence, discipline and a winning attitude mark No-Drama Discipline: The Whole-Brain Way to Calm the Chaos and Nurture Your Child's Developing Mind. The Disciplined Trader Developing Winning Attitudes Mark Douglas NEW YORK INSTITUTE OF FINANCE Library of Congress Cataloging-in-Publication Data. Download The Disciplined Trader: Developing Winning Attitudes For any device Download here.
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The Disciplined Trader: Developing Winning Attitudes [Mark Douglas] on ecogenenergy.info *FREE* shipping on qualifying offers. One of the first books to address. Pdf eBooks download The Disciplined Trader: Developing Winning Attitudes Epub online This work aims to help traders learn the critical. Douglas, Mark The Disciplined Trader - Developing Winning Attitudes. Uploaded by amdumitru Download as PDF, TXT or read online from Scribd. Flag for.
Each trade is simply an edge with a probable outcome, statistically independent of every other trade. This is why it is crucial to have the correct mindset and be able to get over setbacks. By taking complete responsibility for your trades and thinking in probabilities will help you achieve the correct mindset. If you take full responsibility, you realise that there are no boundaries in trading, you choose entry and exit from the market.
This is opposite to life, where people have grown up with set rules and boundaries that you have to adhere to. In the market, there are no such boundaries, but market discipline is essential to be a good trader, therefore understanding and embracing this paradox is key. Operating in a no rule environment can bring great joy but also pain.
It is essential that you act without fear and not fight the market. This will mean that you are not fighting against yourself and therefore able to place trades when you believe that you have your edge.
This will ultimately to a more consistent performance. Consistency is a state of mind and you have to act on the premise that solutions are in your mind and not in the market.
You have to be able to act without resistance or hesitation, but with the appropriate amount of positive restraint to counteract the negative effects of overconfidence or euphoria this is a unique state of mind a traders mindset! It is essential that you understand risk. The market can do anything at any time. It has an almost infinite number of ways to express itself.
Only the best traders consistently predefine their risks before entering a trade.
Only the best traders cut their losses without reservation or hesitation when the market tells them the trade isnt working. Only the best traders have an organised, systematic, money-management regimen for taking profits when the market goes in the direction of their trade. These are the 3 areas where most people fall down in trading if you eliminate errors regarding these areas, you will become a lot more consistent.
The author defines a probabilistic mind-set pertaining to trading consists of five fundamental truths: 1. Anything can happen 2. You dont need to know what is going to happen next in order to make money. There is a random distribution between wins and losses for any given set of variables that define an edge. An edge is nothing more than indication of a higher probability of thing happening over another. Every moment in the market is unique By accepting these truths and training your mind, you can avoid emotional pain.
Emotional pain is a perception, if you can train your mind to interpret a loss not as pain or a mistake but as a natural occurrence, you will learn to accept it as part of being a trader and not let it effect you. The author talks a lot about creating winning attitudes and beliefs that you are a consistent winner.
He identifies seven building blocks to provide the underlying structure for what it means to be a consistent winner: 1. I objectively identify my edges. I predefine the risk of every trade.
I completely accept the risk or I am willing to let go of the trade. Published in: Full Name Comment goes here.
Are you sure you want to Yes No. Be the first to like this. No Downloads. Views Total views. Actions Shares. Embeds 0 No embeds. No notes for slide. Developing Winning Attitudes Epub 1. Developing Winning Attitudes Epub 2. Book details Author: Mark Douglas Pages: Prentice Hall Language: English ISBN They would, however, often caution those who sought their wisdom to understand that all the market knowledge in the world won't do them any good until they learned what can be called self-discipline and emotional control, without necessarily being able to explain what they were.
For instance, "Cut your losses short" is great advice that is often given as an axiom of trading wisdom. But how do you explain to someone the steps needed to learn how to do that? Especially when he is interacting with an environment that is in perpetual motion and will always offer him the possibility that the market can come back and make him whole, if he is in a losing trade.
The easiest way to explain how to apply this type of wisdom, without actually explaining it at all, is to say, "Well, if you want to be a successful trader, you need to learn self-discipline and emotional control.
First, self-discipline and emotional control are abstract concepts that are not easily explained or understood. We all hear or read the words a lot, but ask anyone you know to define either of these concepts, and you'll probably get a blank stare. Second, today's successful traders started out their journey without maps, signposts, or guidelines or the benefit of knowing exactly where they had to end up, from a psychological perspective, to accumulate their fortune.
They had to explore the trading world through a means of self-reflection and readjustment that was very demanding and time consuming. One could say they more or less stumbled through it learning from each mistake, many small and others that were devastating both financially and emotionally. At some point, they probably realized that something about themselves had changed because the normal kind of market activity that once had a very negative emotional impact on them, like anger, stress, anxiety, and fear, just didn't have that same effect any longer.
They must have gained some measure of confidence in themselves to respond appropriately to all possible market conditions because there is a direct correlation between a person's level of confidence and the negative emotions mentioned.
Confidence and fear are states of mind that are similar in nature, only separated by degree. As a person's level of confidence increases, his or her degree of confusion, anxiety, and fear dissipates proportionately.
This confidence would naturally develop as people learned to trust themselves to do whatever needed to be done, without hesitation.
As a result of this kind of self-trust, they would no longer need to fear the seemingly unpredictable and erratic behavior of the markets. However, the main point I am making here is that the process of change that took place was in the mental environment and psychological makeup of each individual trader; the markets didn't change, the tools that were used didn't change, the trader did.
Now, when traders go through a transition in their personal development and learn a new skill on a trial-and-error basis, it is unlikely that they would keep a detailed record of the steps to that learning process, especially if that process was characterized by pain, anxiety, and frustration. Obviously, if someone doesn't know exactly how they acquired the skills they now have, then, naturally, it would be extremely difficult for them to explain to someone else how they got them.
Developing educational programs to explain how to become a successful trader requires a completely different set of skills from the skills necessary to be a trader. As will be explained in a moment, the learning process and the kind of personal transformation that was necessary to enable me to write this book was distinctly different from the kind of learning process I experienced as a trader to realize why a book like this needed to be written. One learning process was chosen and the other was forced.
What I mean by forced is, I had to lose my house, my car, and practically everything else I owned to learn some of the ways in which I needed to change my perspective to operate in the trading environment effectively. Losing all my possessions was a complete life-altering experience, an experience that taught me a lot about the nature of fear and the debilitating effects it has on a person's ability to trade effectively.
The kind of insight I gained as a result of this experience is the type of learning process I call a forced awareness. This is where the nature and characteristics of the environment I was operating in were much different from what I believed they were, first out of ignorance, and because I put up mental defenses to block my perception of certain information.
Eventually I was forced by the markets to acknowledge many things about myself that I otherwise wouldn't consider. When all the external symbols that represented a major part of my identity were gone, I didn't have any other choice and was forced to perceive myself in new and different ways. These events occurred in March Less than a year before, in June , I moved from the suburbs of Detroit where I was enjoying, at least financially, a very successful career in commercial property and casualty insurance.
I left Michigan and success to move to Chicago and be a trader. I went to work for Merrill Lynch because I didn't have enough money to buy a seat at the Board of Trade or the Chicago Mercantile Exchange and didn't know that you could lease seats at that time. I had an expensive apartment on the gold coast of Chicago and a Porsche; I was maintaining a house in an affluent suburb of Detroit that my girlfriend and her two daughters were living in; and I was driving or flying back and forth between the two cities almost every weekend to visit them.
I was under extreme financial pressure to succeed because my life-style expenditures were far and away in excess of what I could afford. Unless I made it big as a trader, it would be very hard to reconcile some of the decisions I made to put myself in that kind of a situation. By the time I moved to Chicago I had already been trading for over two years. Twice, before moving, I lost all my trading capital. Of course, I would quickly save up and start again.
My brief periods of success and few winning trades were enough to justify that I continue trying. This devastated me, but I also became completely hooked on trading and even more determined to be successful. From that experience I decided to buy all the books I could get and attend all the seminars I could afford. Something stated in virtually all the books I read was that it is very difficult to learn how to trade or sustain any success if one is under a great deal of financial pressure—meaning don't expect to become a successful trader if you have limited trading capital or if you are trading with money you can't afford to lose.
I was obviously violating both these rules because I had very little trading capital relative to my life-style that I absolutely could not afford to lose. Also I had a lot of other evidence that the odds were not exactly in my favor. I came to Chicago because I believed that if I could get close to the action and meet people who knew how to trade, I could then learn from them. I was in for a very rude awakening. I was at Merrill Lynch Commodities, its second largest commodity office, with 38 account executives.
At first I was shocked to find out only one of the account executives had any experience trading his own money. Then I was further shocked to learn that none of these account executives had any customers who were making any money. In fact, the typical customer lost his original stake within an average of four months.
My next major disappointment came when I began to meet and make friends with as many floor traders as possible, believing that if the guys up in the offices don't know how to make money, the floor traders certainly must. Again, I found the same conditions that existed up in the offices. Other than a handful of floor traders who had a reputation and a mystique that everyone seemed to be in awe of, I couldn't find one person who was making money consistently, who wasn't confused or knew what he wanted to do and then did it, without first having to ask everyone around him for confirmation that he was doing the right thing.
I am not implying that I didn't meet traders who at some point in the day hadn't made money. They just couldn't keep it. But they would always lose it back, plus more, a short time afterward.
Everybody seemed to be suffering from the same kinds of problems and mistakes that nobody really recognized as problems. Obviously, the nature of the markets made it easy not to have to confront anything that otherwise might be perceived as a problem because the next trade always had the possibility of making everything else in one's life seem irrelevant. Why deal with anything if the next trade can make you rich?
All the traders I knew, including myself, were affected by this type of "big-trade" mentality.
As my financial problems grew, so did my desperation. And I certainly wasn't comforted by anything I saw going on around me.
But I still held on to the belief that I could trade out of these difficulties. That is until March ; by then it was all over. A mere eight months after moving to Chicago to pursue my dreams of financial independence, I had nothing left except my job, apartment, clothes, a television, and a bed. Practically overnight, almost all the symbols that validated my identity were gone.
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What I mean is, a big part of my self-concept was made up of my possessions like my house, my car, and especially my credit. Maintaining flawless credit was something I had always been proud of. Now I found myself without any of these things. As I've already pointed out, it's not as if there hadn't been plenty of evidence to suggest the possibility of this happening, because there had been. But there was a part of me that wouldn't allow a direct confrontation with this evidence or the implications.
It was just too easy to make excuses for all the things going on around me that didn't add up. Refusing to confront or consider the implications of all the conflicting information created a great deal of stress. And to compound the situation, I had this intense fear that I would lose everything.
But again, I did everything possible to hide this fear and put it somewhere in my mind where I couldn't feel it. Yet, there must have been a part of me that sensed my impending fall.
Why else would I have been so consumed with fear? But how could I face any of this when I had no way of reconciling the imbalance that losing all of these things would create? What I mean is the imbalance between what I believed about myself and the things that validated these beliefs. Who would I be after all these things were gone? Well it didn't take me very long to find out. As my financial condition deteriorated to critical levels, my mental defenses also began to break down.
I eventually accepted the inevitability of doing what I believed was the ultimate act of failure and filed for bankruptcy. There were a lot of things that changed inside of me as a result of this experience.
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And like any one else forced to deal with major changes in his or her life, I learned a lot about myself. The first thing that happened, which was quite surprising, was that the stress dissipated. Actually I was overcome with a great sense of relief with nothing to anticipate, dread, or try so desperately to defend against. I was living through my worst fear and found there really wasn't anything about the situation that I couldn't deal with.
It wasn't nearly as bad in reality as I imagined it would be. I was still alive and healthy, I was able to think and function, and I started to appreciate my ability to think as my greatest asset. This sense of appreciation began to grow into a deeper level of understanding about the basic nature of my identity. For the most part, I grew up believing that who I was consisted of the things that I owned. What I began to realize is that I was more than the things I had accumulated. When the facade was stripped away, it allowed me to sense this deeper dimension that, up to this point, I had only the slightest inkling of These new awarenesses, in turn, helped me understand how being wrong and losing something didn't in any way diminish me as a person.
I was beginning to learn that there was a certain freedom in granting myself permission to be wrong and maybe there was no such thing as a failure, unless something positive and useful isn't learned from the experience. However, I didn't relate these personal experiences because I thought they were particularly unusual, except for one. Everyone knows there are many traders who lose everything they own, and even though some of them will come to the same kind of awarenesses about themselves, they wouldn't necessarily be able to do it as a trader, considering the financial requirements.
I, too, was not in a financial position to keep on trading, except that I still had my job at Merrill Lynch. In fact, for me it was business as usual, as if nothing at all had happened. I certainly wasn't about to announce to my customers or anyone in the office that I had just filed for bankruptcy. My job as an account executive was one of the few things I had left, and as far as I was concerned, it depended on me being a good trader.
This is the one key difference for me that ultimately lead to the creation of this book. I was fortunate enough to be able to keep on trading although not with my own money while these major psychological changes were taking place, putting me in a unique position to examine and study the various ways in which the condition of my inner psychological environment affected what I experienced in the outer physical environment.
This relationship between inner and outer isn't always that apparent but in this situation it was inescapable. I learned that the markets offer the trader an opportunity to profit from price movement, and these opportunities are basically in perpetual motion. It is an environment where the individual has the freedom to create his own results, unimpeded by many of the constraints that exist in everyday social life.
These never ending opportunities make the market a perfect mirror of the trader's attitude. What the trader sees in that movement and what he can do about it the markets have no control over.
All the choices and all the power to turn these choices into experience reside in the mind of each trader. For example, if I perceived the market as a threat, afraid of what it might take away from me, it wasn't because the outside conditions were actually threatening me in some way.
It became very apparent to me that my fear was a result of my inability to anticipate events or act in a way that most appropriately served my best interests. It was only the lack of trust I had in myself to do what needed to be done that I was really afraid of.
You can think of it this way: The environmental information we focus our attention on, out of all that exists, will be the information that has the most importance to us. As we allocate more and more of our attention to certain kinds of information, because of its importance, we are at the same time systematically excluding other types of information from our awareness. I created my losses instead of avoiding them simply because I was trying to avoid them.
Instead of being positively focused on market information that would indicate the potential for opportunity, I was more concerned with information that validated what I feared the most. As a result, a great deal of market information pertaining to other possibilities and opportunities that existed in any given moment completely escaped my attention, passing me by.
The only way I could have perceived these opportunities other than after the fact would have been to let go of whatever was causing me to divert my attention away from what was happening in the market "now. Once this shift in perspective occurred, I started to notice behavior characteristics of the market and relationships between those characteristics that I was otherwise totally oblivious to. At some point, I realized that because I had already lost everything, I really didn't have anything to fear, and, as a result, I inadvertently learned one of the most important lessons to becoming a successful trader: No guilt, anger, shame, or self-punishment.
As my fear of losing dissipated, I was seeing and experiencing a different market because I was different. It was as if someone had removed blinders, which I didn't know existed, from my eyes. Up till then, my trading had always been affected by my fears.
I didn't have the slightest notion of what it would be like to trade without fear or that doing it was even a possibility and least of all, that it was, in fact, necessary to be successful. What also became very apparent to me was the extent to which all of my fears had effectively blocked me from understanding why it was so absolutely necessary to have some clearly defined trading and money management rules that must be followed.
It was all starting to make sense. The more I followed my rules the more I trusted myself. The more I trusted myself the more I could focus my attention on subtle relationships in the market's behavior to learn new things about the market helping me become a better trader. Eventually I could gauge the positive effects these new attitudes had on my ability to shift my perspective and flow with the markets.
The less I cared about whether or not I was wrong, the clearer things became, making it much easier to move in and out of positions, cutting my losses short to make myself mentally available to take the next opportunity. Not a lot of money by most trader's standards, but steady. I was having winning days that were turning into winning weeks and months. Then sometime in August I thought of writing a book or at the very least developing a seminar to explain to other traders what I had discovered for myself.
In the area of education there was a definite void in the market. There really wasn't any material that addressed trading psychology at a deep enough level of insight to effectively help someone understand why success was so elusive.
I wrote this book to address what I believe is a critical need for people who want to trade the futures of stock markets to have an organized, systematic, step-by-step approach to learn the mental skills necessary to accumulate wealth as a trader.
The secret to this approach is learning a new thinking methodology. It is my intention in this chapter to demonstrate clearly how a typical social upbringing that instills in the individual certain values and beliefs that make up a thought methodology used for being successful is not practical or functional and is inconsistent with the methods necessary to be successful in the trading environment.
Someone attempting to operate in the trading environment in all the familiar ways that would assure getting what they want will likely find themselves in a constant state of frustration, anxiety, and fear, wondering what is wrong or thinking something must be wrong with them.
The irony is, of course, that, on the surface, trading looks so simple, when in fact most people will find it to be the most difficult endeavor they ever undertake. Success will always seem so close, and yet always so elusive. And this frustration will continue until the trader adapts to the conditions that exist in the trading environment by learning a new thinking methodology, one that works most effectively in that environment and not what he thinks will work based on his cultural and social upbringing.
Perhaps many of you reading this book have heard about a seminar being offered where you can learn how to walk barefoot over a foot bed of red- hot coals.
The people who developed the method to make it possible did so on the assumption that the achievements of people who do things very well and excel beyond what other members of the same culture of society would consider possible do so as the result of a specific way they think—a methodology in which their beliefs are in some way different from everyone else's.
The only difference between those who excel and those of mediocre achievement is that one group has learned a thinking methodology that has not occurred to the other. With this hypothesis, it is my understanding that the people who developed the program went to the South Pacific and sought out those who demonstrated an ability to walk over hot coals with their bare feet— without any physical damage whatsoever.
Upon finding a few of these South Pacific "fire-walkers," the program developers proceeded to analyze their beliefs and attitudes so as to arrive at a thinking methodology they could teach in the United States. I'm sure I don't have to point out the physical and emotional implications of attempting to walk over a red-hot bed of coals with your bare feet. The fear generated over just the thought of doing it would normally be overwhelming.
The potential physical damage to your feet— with the possibility of being crippled for the rest of your life—is quite real. And yet, as presented by several news organizations, both television and print, people from all walks of life involved in the seminar accomplished what we would universally agree to be a tremendous feat. They overcame their fear and walked 20 feet over a bed of hot coals. Now, I'm not going to have you fire-walking the futures pit, but habits of thought die hard.
And to make way for the new thinking methodology I offer as a means of excelling as a trader, you will have to question some of your beliefs and probe deeply rooted concepts of what is possible. Sometimes only a thorough mental "house cleaning" can help you throw away failure to make room for success.
And exposing yourself to information that may cause you to ask yourself "what if it were true" is the first step to any mental cleansing process. For many reasons, which will be explored in greater depth in Part II, it rarely, if ever, occurs to the beginning trader that the markets confront him with an environment that is categorically different from anything he is accustomed to or trained to deal with effectively by society.
For example, the markets can be looked at as a never-ending event, always changing, virtually without structure, in perpetual motion, with an unlimited potential for profit as well as loss in every trade. The psychological impact on the individual interacting with such an environment is formidable—especially when you consider the many ways in which all of us typically go about structuring our lives with highly defined boundaries, limits, and rules, so things stay basically the same.
For most people, a static environment is a fundamental component of their sense of security and well-being. Not only can the markets destroy a person's sense of security by forcing the trader to confront, on a moment-to-moment basis, his lack of acceptance of change, but they also produce an emotional environment of considerable competitiveness and stress. There's the compulsive need to win millions, with the simultaneous fear of financial devastation. Furthermore, the principles of time, effort, and reward associated with most job situations simply do not apply with the markets.
For example, many jobs offer an unchanging reward, regardless of effort, because of hourly wages or yearly salaries. For a trader, effort can be irrelevant, and there is virtually no relationship between time and reward. A trader can be stunned with a windfall profit in a matter of seconds for making one simple decision and the only energy expended was mental. Initially, you may think what could be wrong with making a lot of money in minutes or seconds.
A lot! Whether you're aware of it or not, most if not all of us grow up with highly structured belief systems about the conditions under which we deserve to receive money.
In fact, many people because of their childhood conditioning and religious training believe they don't deserve any money they didn't work for. Certainly, making a lot of money in a very short period of time with no effort expended does not fall within the definition most people have about working for their money.
So how does someone reconcile windfall profits against these structured work beliefs, especially when they're probably not even aware of them or would not take them into consideration if they were? This kind of mental conflict usually gets reconciled by the trader finding some clever, ingenious, or mundane way of giving his money back to the markets.
Not adjusting to the differences between the cultural and trading environments or just being unaware that differences exist can certainly account for many of the trading errors committed by the majority of traders. Yet, a thinking methodology can not only redefine the market's behavior in understandable terms to avert such mistakes, it can also manage most, if not all, typical undisciplined, emotional reactions to that behavior. You probably wouldn't even notice if you had behaved similarly in the past and suffered the same disastrous consequences.
Because the present situation is so immediate, you may have no concept of how typical and even thoughtless your behavior may be. In fact, it may be news to you that there are only a limited number of such typical reactions leading to failure. The following typical trading errors have a specific cause rooted in a thinking methodology that can be changed. Refusing to define a loss. Not liquidating a losing trade, even after you have acknowledged the trade's potential is greatly diminished.
Getting locked into a specific opinion or belief about market direction. From a psychological perspective this is equivalent to trying to control the market with your expectation of what it will do: Focusing on price and the monetary value of a trade, instead of the potential for the market to move based on its behavior and structure. Revenge-trading as if you were trying get back at the market for what it took away from you. Not reversing your position even when you clearly sense a change in market direction.
The disciplined trader: developing winning attitudes mark douglas books-acceptab
Not following the rules of the trading system. Planning for a move or feeling one building, but then finding yourself immobilized to hit the bid or offer, and therefore denying yourself the opportunity to profit. Not acting on your instincts or intuition. Establishing a consistent pattern of trading success over a period of time, and then giving your winnings back to the market in one or two trades and starting the cycle over again.
These skills give us the necessary requirements to look at, think about, and behave toward events in a manner different from what we may be used to or what we may have been taught. However, beyond the sheer mechanics of the activity—which just about anyone can master—lies a particular thinking methodology or strategy that leads to excellence.
Although few people have it, such a thinking methodology can nevertheless be learned. Any thinking methodology requires a series of approaches to goals and problems.
These approaches might be better described as mental techniques, even skills of thought application. Other techniques or skills include: Learning the dynamics of goal achievement so you can stay positively focused on what you want-not what you fear. Learning how to recognize the skills you need to progress as a trader and then stay focused on the development of those skills, instead of the money, which is merely a by-product of your skills.
Learning how to adapt yourself to respond to fundamental changes in market conditions more readily. Identifying the amount of risk you are comfortable with - your "risk comfort level"-and then learn how to expand it in a way that is consistent with your ability to maintain an objective perspective of market activity.
Learning how to execute your trades immediately upon your perception of an opportunity. Learning how to let the market tell you how much is enough, instead of assessing the potential from your personal value system of how much is enough. Learning how to structure your beliefs to control your perception of market movement. Learning how to achieve and maintain a state of objectivity.
Learning how to recognize "true" intuitive information and then learning how to act on it consistently. Trading systems give us a way to define, quantify, and categorize market behavior. Since the markets offer traders a seemingly infinite combination of behaviors, all with their corresponding opportunities and risks, it is easy to understand how our minds can become overwhelmed.
Trading systems limit the scope of market behavior, and therefore make this activity a little easier for our minds to manage.
They also give us direction and suggestions about what to do in a given market situation. Without them traders could easily feel as if they are floating aimlessly in an endless sea of possibilities and opportunities with no land in sight.
Since trading systems define opportunity and offer suggestions, following these suggestions can lead to the development of skills, even though as suggestions they merely point the way for your awareness to be directed. A true skill not only points the way, but almost automatically begins to direct awareness as well.
I do not offer a trading system in this book. It's more a means of interfacing a trading system with the mind's psychological structure.
If a trading system provides awareness of market signals, and suggests behaviors appropriate for any given market situation, then the thinking methodology I will share with you teaches skills and processes of skill application. Having the skills necessary to consciously manipulate one's psychological environment is essential for the trader who recognizes how ineffectual a trading system can suddenly become whenever a tense situation demands a split-second decision.
Most everyone reading a book of this nature would consider himself as successful to one degree or another, either through trial and error, or the rigorous application of some proven formula, through which each has learned—intentionally or not—skills or methodologies of thought to achieve this success. In any case, we all have a natural tendency not only to want to achieve success in something, but also to apply the principles of success that work very well in one situation to practically everything else.
The disciplined trader
It often doesn't occur to us that some environments may require very different psychological resources to achieve success. Suppose, for example, that you arbitrarily tried to apply a certain thought system of success to trading futures or stocks without first investigating the usefulness or validity of that system in relationship to the actual conditions as they exist in the markets.
More than likely, you would be doomed to failure before you even started. Obviously people don't consciously start trading with the belief that they don't have the right resources or that they're going to fail. In fact, it is just the opposite. Because most traders come from or still enjoy very successful careers outside of trading, they have a great deal of confidence in their ability to extend this success in the trading environment. This unfounded confidence, coupled with the way the markets distort a person's concept of reward in relationship to time and effort expended, will cause the trader to form some very unrealistic expectations about the kind of results he should achieve.
Believing that trading is easy is the reason for the unrealistic expectations. And they are probably the single biggest reason why most traders never make it beyond the initial levels of development before they lose all their money.
Starting out believing that trading is easy is a psychological trap that entices almost all traders. But it isn't too difficult to understand why, when you examine the dynamics of the process of how we set up a standard of performance for ourselves by which to gauge our progress. There are four basic components that make up a person's standard of performance or expectations for results.
Second is our concept of effort—our supply of personal energy is not inexhaustible; it runs out, we tire, and we may even become ill if we don't rest properly. The third is our concept of expertise—the number of skills we have learned and our degree of proficiency in using these skills; it usually takes a great deal of time and energy to acquire expertise.
Now one of the primary ways we learn to value ourselves is based on our belief about how much work we do and the amount of time it takes to do it. Which brings us to the fourth component in the equation; reward.It is like our own personal supply and demand formula for our time and energy. Amazon Drive Cloud storage from Amazon. The argument seems to be that the market is the truth, and if you can be without psychological damage that causes you to want to dissemble before your fellows then you can be the truth too and thereby make yourself congruent with the market--and know what it will do.
Sort order. Right now I want to give you an example to illustrate these first two points. It often doesn't occur to us that some environments may require very different psychological resources to achieve success.
The second consists of Chapters 3 through 8 and defines the problems or challenges of becoming a successful trader. So there's a sample of his prose, as well as a vision of enlightenment and its fruits as set forth in The Disciplined Trader.
And yet, as presented by several news organizations, both television and print, people from all walks of life involved in the seminar accomplished what we would universally agree to be a tremendous feat.
This comes with experience and the idea of having a positive frame of mind.