This book is useful for me in an unexpected way. I find the book helps me to heal old wounds, not just trading ones but those related to other aspects of my life. I am starting to see how I distort my thinking and expect things to happen contrary to what's happening around me at the moment. So, I suppose you can substitute the word "market" with anything you are dealing with at the moment and this book will still apply. In many ways, cognitive therapy is like Zen but with a more concrete touch. I also find in dealing with trading I become more capable to use that as a reference point for the understanding of my everyday life as well. Maybe it is because when you are not trading, you don't have the need to focus on the "now". But when you need to, you naturally would.
We can observe our own weaknesses in many things, especially in trading. It's often said that we have a type of gain when we don't overpay the tuition. Unfortunately for me, I could not keep up with the program in this book for practical reasons. I expect that almost everybody that starts this program will abandon it fairly quickly.
The potential gains from this book might be commensurate with efforts made. That's always the claim when a program is promoted. Much is required in this program, perhaps in violation of principles to keep things as simple as possible.
In defense of the book, challenging one's perceptions and beliefs is not a small task. The reader is tasked with keeping a detailed journal that goes well beyond most trading journals. Some biofeedback is required. Monitoring one's thought patterns and managing them in real time requires utmost commitment.
This is a book that no trader can outgrow by definition since one will always struggle to manage the routines themselves. Systems like this can claim to work when the subjects adhere to them 100%, which is impossible. Nevertheless, it may be possible to fashion a practical program using ideas from this book.
I gave very high ratings to the author's previous two books. However, I remarked that they are for professional trading trainers and trainees preferably with intermediate knowledge on psychology. Eventually, the author had presented the "mass market" this great work which it can digest. Very useful indeed. A must for any serious trader's collection!
Below please find some of my most favorite passages for your reference:-
When you think about your thinking by adopting the perspective of a self-observer, you no longer buy into negative thought patterns. pg42
A trading career is a marathon, not a sprint; the winners pace themselves. pg78
When we pursue goals in an effortful manner, we build intentionality and free will. pg80
A different facet of well-being is serenity: a mind free of distracting thoughts and feelings. It is vital to elite performance: a mind at peace is one that can be fully focused on market patterns. pg83
Success does not consist in never making mistakes but in never making the same one a second time. - George Bernard Shaw pg99
To keep yourself solution focuse, you want to ask yourself, "What did I do well today? What about this trade did I do right?" You will find that, over time, your performance is varied. pg113
When you talk aloud your thoughts and feelings, you no longer identify with them; you listen to them as an observer. pg117
Our coping is mobilized when we imagine anticipated stressful situations, preparing us for when those situations actually occur in trading. pg127
Consider two coaching scenarios.....1# "How could you be so careless? You just ruined your week. Do you realize what will happen if you continue to do this...." 2# C'mon, you're a better trader than that! Remember last month when you put together a string of winning days?...." 1# mirrors a sense of failure....2# doesnt avoid the problem, but starts from the premise of good trading. It mirrors encouragement and a reminder of the trader's strengths. pg144
I find it helpful, during trading, to periodically remind myself, "It's not about me." pg178
Tangible rewards for your success are among the strongest positive reinforcers. pg206
You dont have to diversify by trading many markets. You can diversify by time frame, directionality and setup pattern (trending, reversal). pg247
Anyone who fights for the future lives in it today. -Ayn Rand pg261
It's okay to be emotional; it's not okay to let emotion change your management of risk. pg281
What distinguishes this book (I don't know his other works so I can't refer to them but a cursory sampling of them here at Amazon induced me to try this one out first) from other trading books I've read is that Steenbarger unabashedly incorporates "self-help" elements into his overtly psychological approach to becoming a professional trader. I'm aware of the stigma attached to the self-help genre as a whole, but in Steenbarger's case these elements emanate from extensive academic training in psychology (from the "About the Author" section of the book near the back: "Brett N. Steenbarger, PhD is clinical associate professor of psychiatry and behavioral sciences at State University of New York Upstate Medical University in Syracuse, NY"), so his self-help angle reflects what seems to be a genuine concern with helping people--a refreshing antidote to the many dry, analytical, impersonal tomes on trading out there (which isn't to imply that the latter don't have their place--they do--but they're useless if you haven't first mastered various inner aspects of professional trading).
I emphasize Steenbarger's self-help emphasis to distinguish it from the emphasis of another, more famous (but not necessarily better) writer, Mark Douglas, author of _The Disciplined Trader_ and _Trading in the Zone,_ both classics (and for good reason) in their field, whose insights about trader discipline, while incisive, are hardly inspiring. And for me, it's what endears me most to Steenbarger. The writer I've encountered who's come closest to equaling this profound sense of connection Steenbargers makes with his audience is Dr. Alexander Elder, although while Elder establishes his rapport through humor and familiarity, Steenbarger establishes his through perspective, compassion, and insight into how optimism and realism aren't necessarily mutually exclusive.
One thing I must say, however, is that those who haven't been trading for awhile may not benefit as much from this book as those who have--and especially those who have already lost a great deal of money. Steenbarger even implies as much in the way he titles his chapters: "Change: The Process and the Practice"; "Stress and Distress: Creative Coping for Traders." These are the FIRST TWO chapters of the entire book! Indeed, this is obviously a work intended to help the already-wounded trader get back on his/her feet and this time do it right. Steenbarger emphasizes the necessity of the professional trader eventually having to consider trading well from the standpoint of a fear-based need rather than a luxury-based desire--a revelation, again, that usually only comes to those who have already been severely wounded by trading badly. If this is you, this is your book. If it isn't, and you stick with trading, it eventually WILL be--unless it's already too late.
In Googling "Trading Coach" this morning, I came across "The Daily Trading Coach". I read the reviews and looked through the sample and Googled the author. I've been trading for about 10 years and I'm admitting that I've never been good and it so unless I want to give it up, I need to change how I trade. That's why I bought this book. I'm spending a month of vacation time from my job to get my act together since I'm going into my 60th year and want very much to be able to trade to supplement a pension in my retirement. Quite a bit of pressure. So to grapple with the fear that I have of destitution in old age, (just kidding) I'm setting up a better trading process; journaling, determining a pre-market routine, figuring out how to make trading a business, etc. It's complex so it's important to get organized and have a system down on paper to work with, a business plan. I've never sat myself down to do that.
I've worked in both the textbook industry and the educational field and just in reading the preface and intro. of this book and seeing how Mr. Steenbarger has laid the text out and is using multimedia through his website, I am impressed. I see the danger here as one of being overwhelmed with data, but the author is obviously a man of great accomplishment and organization, and a lack of organization, dedication and consistency have been my downfalls. I'm looking for help to stop speculating and make trading a business. I've learned a lot about trading in the last 10 years. Now I need to apply it in an effective manner.
I'm going to use this book as a workbook. I'll go into it looking for what applies to my trading of the day, read some about the subject, then be led through a wealth/maze of information on-line, helped to assess it's use and organize the information into my trading plan. A good way to keep myself on track... like having a coach at my side when I want some assistance to work on something specific to my trading challenges. I'm thinking I've found the teacher/coach I am ready for, and it's ME, with a little help.
Happy Trading
Forget all the other trading psychology books. Ive read them all. Just the section on pro traders sharing their psychology is worth it. That section has more usable info than the book market wizards which I also rate 5 stars! The resources and different sites you can explore to hook up with like minded traders is worth the price of the book. Brett pulls no punches. He allows the people he interviews to tell the turht, such as "The one constant is that it takes a substantial amount of research outside market hours to implement your plan and trading ideas." He describes day trading as if you are training for the olympics. You must be motivated and in condition and you must believe in your plan. Brett says one of the most beautiful things I think anyone can share with another person in a book..."Its amazing how much you can achieve when you know you are not ordinary."
He talks about grounding yurself and the mental preparation you need to go thru before you even turn on the computer. He does not give set mandatory ideas but lets you find your own way. Lets put it this way, living on 5 hours of sleep per night and having donuts for breakfast every single day will eventually wear you down as a trader. You must train like you are going into an olympic event. He even gives a great site where you can order cd's with great trading affirmations which Ive already bought and love. I admit this, there is so much in this book, it took me 3 months to fiish it because I couldnt digest all the pertanant info on each page. You better have a highlighter and 2 different colored pens by your side when you read this book!
I would love to find a study group to meet once per week in the Delray Beach area of Florida to really work on this book. The only book that comes close to it for trading psychology is Tools and tactics by Oliver Velez. Get both of them and you wont need any more psychology books.
This book is for traders who already have a trading plan or a stratgy in discretionary trading. This book will show you methods how to stand by yourself, watch yourself, and help yourself to follow your own guidelines.
Dr. Steenbarger states that he only coaches professional and institutional traders. So all of his books (I like Enhancing Trader Performance best) come at a huge discount.
This book is divided into 10 chapters made off 101 lessons. The reader/trader may find that some lessons aren't of any concern to her, and then he finds other lessons that really address his specific need or problem. Dr Steenbarger's books even helped me in other areas of my life.
But as for trading; in my not so humble opinion, a proper trading plan is still the most important asset to the trader. By all means in trading one has to know why to do, when to do, and how to do something. It's like a traffic light: you may feel you're tired, sad, happy or excited; you still know what to do when you see green light or red light. Psychology takes care of itself after you've crossed the street. It's when your plan works and you find it's your own behavior that hinders to get the most off it, then this book might help you with overcoming your limitations.
Product Details :
Hardcover: 368 pages
Publisher: Wiley; 1 edition (March 23, 2009)
Language: English
ISBN-10: 0470398566
ISBN-13: 978-0470398562
Product Dimensions: 6.1 x 1.2 x 9.2 inches
More Details about The Daily Trading Coach: 101 Lessons for Becoming Your Own Trading Psychologist 1st edition
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