The Best Trading Book You Can Read
If you’re a beginning trader, you’re probably reading a ton of books on trading right now. It’s good to have a thirst for knowledge, but keep one thing in mind as you read. You’ll be exposed to many different beliefs about the markets.
You see, there are literally hundreds of different ways to trade the markets.
You could spend years reading about trading and technical analysis. After just a few books however, your head will be full of trading jargon… and a lot of confusion.
Being confused can lead to a lot of frustration and money lost if you’re not careful. It’s one of the worst ways to get started in trading.
Many novice traders throw their hands up in despair saying, “It’s too confusing, there’s too much to learn.”
Finding the right path can be mind boggling…
There’s so many different ways to trade… Which way is best?
Here are a few tips…
First of all, I suggest you focus on one area and stick to it. For example, if you want to learn to trade stocks, trade stocks and nothing else. If your interest lies in options, focus on options and nothing else. Keep your trading as simple as possible. Be a purist!
Secondly, work on your attitude towards the market.
Be mindful of how you feel while you’re trading. This may sound funny, but it’s very important. It’s so important in fact, entire books have been written on the subject of trading psychology. You won’t realize it at first, but the secret to success in the markets lies in your head!
Trading psychology is an important subject and here is an essential book you can read about it…
“Trading in the Zone” by Mark Douglas. Mark breaks down the most important aspect of trading… the psychological aspect. The most challenging thing to accomplish in trading is having a mindset that’s beneficial to trading. Successful trading takes a special mindset.
This book teaches basic concepts most traders completely overlook. Mark understands the most important aspects of trading and will guide you down the right path.
The book will also teach you how to apply a beneficial mindset to your trading. You’ll learn that trading doesn’t have to be incredibly complex (most of the time, simpler is better). You’ll even learn some secrets to successful trading.
Here are a few of my own simple truths about attitude and the markets…
You can’t expect the markets to give you anything. Not money, not success, not happiness, not anything. The markets don’t care if you make money or not!
By expecting something from the markets, you’re setting yourself up for a big letdown. When the market does something you don’t expect, you’ll become emotional. When you become emotional, you lose discipline.
It’s up to you to remain disciplined and unemotional. If you don’t do it, who else will? The market sure won’t. If you can’t accept this fact, the market will separate you from your money in short order.
As a trader just starting out, things can be challenging…
But follow the steps above and you’ll get started out on the right foot. No matter what you decide to trade and how you decide to do it, make it simple. And above all, acquire the trading mindset and take responsibility for your actions.
Category: Stocks
