Trading the Zone - by Mark Douglas

Greetings,

If you have read some of my past posts, you would be aware of my 'fear of trading' issues. Slowly but surely, I am trying to overcome this through discipline and action. I know that I will eventually become extremely successful as a trader. As far as I am concerned, it is not if – it is when. At present, I am in the period of pain, the school of hard knocks! To become successful, I need to get over myself!

I have started to read ‘Trading the Zone’ by Mark Douglas. I purchased this book, along with his first book, ‘The Disciplined Trader’ about 8 months ago. The Disciplined Trader was my first introduction to trade psychology. A tough read, but an eye opener all the same. Trading the Zone looks to be an easier read.

There is one section of the prefix (page xiv) that I am compelled to share with you.

“Those Traders who have confidence in there own trades, who trust themselves to do what needs to be done without hesitation, are the ones who become successful. They no longer fear the erratic behavior of the market. They learn to focus on the information that helps them to spot opportunities to make a profit, rather than focusing on the information that reinforces their fears.

While this may sound complicated, it boils down to learning to believe that: (1) you don’t need to know what’s going to happen next to make money; (2) anything can happen; and (3) every moment is unique, meaning every edge and outcome is truly a unique experience. In any case, you wait for the next edge and appear to go through the same process again and again. With this approach you will learn in a methodological, non random fashion what works and what doesn’t. And just as important, you will build a sense of self-trust so that you won’t damage yourself in an environment that has the unlimited quantities the market has.”

This is my ultimate goal as a trader – The expanding trade account and the monetary award will be the result.

Thank-you for your time today,

Cheers - David