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@tradingandbooks

11 Tweets 135 reads Mar 22, 2022
8 lessons/quotes from "Trading in the zone"
the best #trading psychology book
by Mark Douglas
thread 🧵👇
amzn.to
1⃣How to win at this game
1. Objectively identify your edge
2. Predefine the risk of every trade
3. Accept the risk or let go
4. Act on your edges without hesitation
5. Continually monitor susceptibility for making errors
6. Never violate these principles
2⃣A probabilistic mindset
1. Anything can happen
2. You don’t need to know what is going to happen next in order to make money
3. There is a random distribution btw wins and losses
4. An edge is just an indication of a higher probability of one thing happening over another.
3⃣The role of your mind
“You create your own game in your mind based on your beliefs, intents, perception and rules.”
4⃣Acceptance
If the information the market generates doesn’t cause you emotional pain, there’s nothing to avoid.
It is just information, telling you what the possibilities are.
This is called an objective perspective—one that is not skewed or distorted by what you are afraid."
5⃣The winners
“The winners have attained a mindset that allows them to remain disciplined, focused, and, above all, confident in spite of the adverse conditions.
As a result, they are no longer susceptible to the common fears and trading errors that plague everyone else.”
6⃣Risk-taker
"There is a huge psychological gap between assuming you are a risk-taker because you put on trades and fully accepting the risks inherent in each trade.
When you fully accept the risks, it will have profound implications on your bottom-line performance.”
7⃣Results expectation
“We have to be careful about what we project out into the future, because nothing else has the potential to create more unhappiness and emotional misery than an unfulfilled expectation.”
8⃣Market analysis is not the key
“However, market analysis is not the path to consistent results.
It will not solve the trading problems created by lack of confidence, lack of discipline, or improper focus.”
In summary:
1⃣How to win at this game
2⃣A probabilistic mindset
3⃣The role of your mind
4⃣Acceptance
5⃣The winners
6⃣Risk-taker
7⃣Results expectation
8⃣Market analysis is not the key
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