Trading In The Zone Book Review – Mark Douglas

By Mark Douglas

Trading in the zone book review

This was one of the first books recommended to me to read when I started out on my trading journey so here is my Trading In The Zone book review.

Overview

Author: Mark Douglas

Published: 2000

Pages: 216

Subject: Trading psychology

A must read for wannabe traders

This book will not teach you how to trade the markets but it will enlighten you as to what real trading is about.
It is not a technical or fundamental analysis book.

Trading in the zone is written for the stock market but the same principles apply to sports trading as well. It’s all about the psychology of trading.

When I first read this book it changed my perspective and mindset as to how I should deal with market trading. It is a difficult read and will probably have to be read a few times for things to sink in.

Mark Douglas articulates the common dangers of trading, such as failing to take responsibility, and then gives us principles and tools to overcome them. Thinking in terms of probabilities and not ‘right and wrong’ is perhaps the most important single understanding.

Key points I took from the book

Do not be disappointed when you are wrong, or become overconfident when you are right. It is about implementing your method consistently regardless of wins and losses. Because wins and losses will stir your feelings and cause you to act irrationally, and result in self-sabotage.

⭐ To be consistent, you have to learn to think about trading in such a way that you’re no longer susceptible to conscious or subconscious mental processes that cause you to obscure, block, or pick and choose information on the basis of what will make you happy, give you what you want, or avoid pain.

⭐ Why do you think unsuccessful traders are obsessed with market analysis. They crave the sense of certainty that analysis appears to give them. Although few would admit it, the truth is that the typical trader wants to be right on every single trade. He is desperately trying to create certainty where it just doesn’t exist.

These above quotes ring so true to me – we see what we want to see. We filter information every second and we do that in trading too. We will filter out the information that will cause us pain and select information that gives us pleasure. And doing these seldom lead us to profits.

Trading in the zone book review – Final thoughts

If you are serious about trading then this book should be added to your library. I found it refreshing and inspiring. In fact, I am applying some of it to my life outside of the markets.

It is a difficult read and would be more suited to people who have some knowledge of trading. If you are a complete beginner the first half of the book might be too hard to understand.

The problem for most traders is human emotion, and maybe reading this book, will help potential traders in reducing their emotion levels.

The only bad I have to say about this book is, it could of been condensed down I feel to half the size and still got the message through.

If you want to trade, this must be part of your library. Psychological based proving how your thoughts and beliefs about the market along with emotions have no reflection on what the market is communicating to you at every moment. The ending shows steps to building a solid system of your own, which is the first stage of becoming a great trader.

You can purchase this book by clicking on the image below – please note this is an affiliate link so I will earn a small commission if you make a purchase but will be no extra cost to you. 

You can read the authors other book review here – The Disciplined Trader

 

Trading in the zone book review


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