Trading in the Zone

When I first attended a trading seminar during the beginner stage I got to know a trader and we became friend. We met up once in a while to discuss trading. Over time the frequency of meetings and phone calls lessened and we lost touch after that. I received a call from him about two years later and he asked if I was keen to have some trading books and told me that he had given up trading and wanted to disposed all the trading materials and books. When I met him up to collect the books he told me that trading is just not for him.

Among those big pile of books that Tony gave me , “Trading in the Zone by Mark Douglas” is one of my favourites. It is a book about trading psychology. I read through it once and every now and then I still use it as a reference. I believe many traders have also read this book before.

When I first picked up this book , I flipped to the front cover page of the book and it says

“ You may know a lot about the markets. you may even know the major players , when to buy , when to sell , and which stocks have the potential to move. But how well do you know yourself ?

Even the most astute , highly motivated , well-grounded traders can be crippled by counter-productive thinking that leads to poor decisions and trading errors. They suffer from an inability to stay objectively focused or lack the necessary confidence to execute their trades properly. Or they let deeply ingrained mental contradictions and misconceptions about trading or the nature of the market rule their stock picking.

The result ? An extremely high percentage of traders lose all or most of their money within the first few year of trading. “

I then flipped to the back of the book cover and look at Mark’s background as an active trader. Yes , I told myself this book is a must read for me. So far no regrets …