I have been reading more of
The Disciplined Trader by Mark Douglas. I like the book. I think people who want to become better in the Markets think that there is a magic formula. This book addresses that "touchy feely" side of trading. I think most people can understand the "rules" of trading. Few people can manage their emotions though when they are in the Market. So here are a few more ideas from the book.
- Prices will go in the direction of the greatest force. (Elder's Force Index could be useful to gauge the strength.)
- If you never really know where the market may stop, it is very easy to believe there are no limits to how much you can make on any given trade.
- Get over the notion that each trade has the potential to fulfill all your dreams.
- Once you put on a trade, you have to actively participate to end your losses.
- You have to learn how to read the market. It will tell you what to do.
- In an unstructured and unlimited environment, it is essential that you establish rules to guide your behavior.
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