I did not trade since Monday, because i expected some window dressing by big players for FY end. So i spent time on reading few psychology books.
Mark Douglas- Trading in Zone
Re read. The book is mostly about trading psychology
Annie Duke - Thinking in bets- Making smarter decision when you dont have all the facts.
The author is poker ex-world champion and successful gambler. Excellent book. Mostly
talks of about emotions and minds of gamblers and how they think.
For those who have already read many psychology books and who have basic understanding of how our mind works. These books are very helpful
David D Burns - Feeling good-The new mood therapy.
Re-Read. Practical guide to overcome anxiety, depression and regret. Recommended for
those who are interested in psychology and those who are in need of therapy for
depression. I like to read lot of psychology books. So i re-read it.
Barbara Olasov Rothbaum - Pathological Anxiety_ Emotional Processing in Etiology and Treatment (2005, The Guilford Press).
This is book is about the theory behind “Exposure therapy”.
Fear is one of the most devastating emotion that causes traders to self destruct. Psychologically, fear can only be overcome by exposing to the fear. that is a person afraid of dark has to be gradually exposed to darkness to overcome fear, same is the case with people who are afraid of heights, they are gradually exposed to height by taking them to higher floors of tall building gradually.
This is the catch 22 situation for traders, to overcome the fear of loss, the trader need to be exposed to losses gradually through Stop loss hits. But a massive loss will cause a shock and undo all the gains of exposure therapy while a smaller loss will not offer any therapy effect. Therefore the losses are to be just right.
I am reading the book. I could connect with my own experience of fear of losses.
SO WHAT U GUYS ARE READING DURING THIS WEEK. PLEASE SHARE.
This book is less about trend trading and techniques and more about Trading stories and mind set of a trader. It’s almost life lessons for a trader… The books is full of parables and stories which teaches you number of interesting lessons about trading and life…Although this book of Michael Covel is less popular compared to his blockbuster book “Turtle trader”, I feel this is his best work to date.
This book is based on the author’s extensive 15-year study of the world’s top trend following traders such as Ed Seykota, Paul Tudor Jones, the Turtle Traders, Larry Hite, and many others. This is not a book filled with Mr. Covel’s opinions, as it’s direct quotes, advice, and methods of successful millionaire and billionaire traders, most of which he has interviewed in person. The author has also studied the entire history of trend following traders back to the 18th century including some more recent legends like Jesse Livermore and Richard Donchian.
I love currencies. Study about currencies are not complete without reading about, how currencies are controlled by governments, how they are gradually debased that ultimately causes the collapse of the system. This happens over several decades if not over several centuries. But we have a “fast forward” example in Indonesia rupiah during Asian financial crises (that ultimately caused political crises and east Timor breaking away from Indonesia.
