How do I define a great book? When there is enough insight that results in a change of behavior. And believe me, you’ll find enough insight on this book.
Put it on other words, there is the trader I used to be before and another trader (I like to think I am) after reading this book. It completely changed the way I saw the market for good.
This book teaches you how to go about thinking probabilistically. This is more important than you might think. Let me give you one example: what happens when you go long on any currency pair?
Most trader tend to ignore all the evidence against their trade, like: other traders going short, an important resistance level that is just above your entry, a double top pattern, etc. Well, almost all traders do. I stopped doing it after reading this book.
Once you stop blocking this information, you make yourself available to all the information “available” at the market. You can cut losses short, get out of a trade if you are long and there is a resistance level close to your entry, etc.
Another thing that I changed after reading this book is the way I approach each trade. I no longer think that each trade is important.
To be successful you need to trade, that’s out of question, but you are not going to win all your trades, some of them will go against you, so you need to focus on a set of trades, not on each trade individually. You need to get rid of the fear of losing (accepting risk), this way you’ll stop blocking information against your trade.
Basically, Mark Douglas explains that the difference between successful trader and everyone else is not how they trade, but the way they think about how they trade.
Now, if you decide to read this book, read it two or three times, you won’t regret it.
I’ve been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .