This time around, it inspired me again. Not only this book inspired me into further thoughts, it also helps to revisit tons of wisdom that I almost forget these days. The best part about this book is... it applies to any market condition regardless of time and products. End of the day, the author want us to believe that we are trading our belief rather than trading the market... which is very true!
On the expanded part, honestly, nothing much and nothing special. End of the day, it is still back to the theory as presented by the author. Well, it is adequate to become a super trader even without the expanded part, ha...
After so many years, this "old" book remains one of the best trading books in the market. After all there is really nothing new under the sun. As such, I have no hesitation to rate this book at 10/10. If I am not mistaken, my last rating was not that high. But, this time around, I think I appreciate more after went through all the ups and downs. As usual, with a rating of 10, this book certainly has a lot of nice quotes as below. Last but not least, this is a must read book for beginners, amateurs and even experts. I highly recommend this book. Thumbs up!
Entry into the market is one of the least important aspects of good trading. The keys to a moneymaking system are elements such as determining your objectives and the way you exit your positions.
Many traders have what I call the perfectionism complexity complex. In other words, what you have is never quite enough. There is always another exit or another entry that will make it better. What this means is that you always will be struggling with new ideas. Consequently, you never will get to the real issue of trading and just being a trader, doing trading.
To a committed person, the most important thing is the destination. When you are committed to becoming a good trader, you do whatever it takes and little things don't throw you off track. When distractions arise, you go around them and focus on your goal. That's the power of commitment and commitment is essential to trading success.
It's fairly difficult dealing with the markets if you are not willing to lose. It's like walking but wanting to use only your left foot, avoiding your right foot.
Instead of giving up on the market after a string of losses just in time to miss the really big move, they avoid their system until it is doing really well. When it is showing tremendous profits, they jump on board, only to be blown away by the market.
Everything you think about and everything you worry about are in the past. When u release them and concentrate on the now, you'll find that everything is beautiful. It's only our thoughts, based on our interpretations of what happened in the past, that cause upset and struggle.
Occasionally, I might have a thought about the problem, but then I realize, "You just gave this to god. Are u now taking it back?" The answer is usually no, and I automatically drop it.
Instead of looking for issues, I spent the same amount of time writing down the blessings in my life and give thanks for those blessings. Quite often the blessings are the same ones, but that's ok. It is a wonderful vitamin.
If you find yourself worrying about anything, write it down on a piece of paper and give it to God. Put it in your own God box but remember that you have to be totally willing to turn it over to God and release it. If you don't give it willingly, you'll find that God is quite willing to let you keep it.
If my body reflects feelings of tension, anger and irritation, I am acting out of fear. If my body reflects feeling of relaxation, well-being or harmony, I am acting out of love. I am trying to increase my attention to this before the decision is implemented.
You cannot trade the market. You can only trade your beliefs about the market.
When under stress, you revert to primitive behavior, but with more energy. This is fine if you must run away from a predator, but it is disastrous if you have to think quickly about a market situation. The trick to dealing with such a situation is to rehearse it in your mind before it happens. When you've done that, your unconscious mind will know exactly what to do and stress won't be a factor.
Remember that employee traders work for systems; they don't necessarily understand the systems. I believe this is the key to why they are not necessarily good traders.
Stockbrokers are really employees (to the extend that they receive a salary) who are paid to sell stocks. They are self-employed to the extend that they depend on commissions. When employee traders approach trading, they usually bring the employee mentality into play. They want to be told what stocks to buy or what the market is going to do. They are used to being told what to do, and they abhor making mistakes. That's the employee mentality, and it doesn't fit into good trading.
They treat their trading business as a group of systems. They make those systems as automatic as possible and then train other people to run them. You cannot be a perfectionist and develop automatic systems. However, you can develop such systems and free yourself.
Traders become investors when they invest in systems that give them a good return on their capital without requiring additional work.
Remember that your real goal in designing a trading system is to develop one that works well in one or two market types. The mistake most people make is to try to fit one system to multiple market types.
Key ways to grow your business:
1. Develop new, improved trading systems- Some of your systems may stop working in certain market conditions, and so it's always good to have more systems in pipeline.
2. Find more markets in which to apply each system.
3. Add Traders.
4. Make your traders more effective at what they are doing - measure the effectiveness by the number of mistakes that trader makes.
5. Optimize your position sizing.
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