Readers reviews of
You can add your review of this book by
contacting us . We will then place your review on this page. (You can
request to have your name deleted if you wish)
brings a unique perspective to the psychology of trading. It is written by a psychologist
and this is both an advantage and a disadvantage. The psychologists world is
dominated by the belief that almost everybody should have therapy and this is the lens
through which they view the world. Trading problems are an extension of personal problems
which would require therapy.
This is a valid
approach for some traders, and Brett draws on a range of case studies to highlight the
connection. He includes many therapy examples which he then relates to either problems
other traders have experienced, or
problems that he has experienced himself as a trader.
It has become a
cliche to say that a trader loses in the market because he is really using the market to
reinforce his fathers belief that he is not good enough. Brett avoids the clich? and
provides a range of good examples to show how this type of psychological problem can
impact on trading performance. This is the psychology of selected traders. The book does
not deal with the psychology of trading crowds.
I found him
more useful when he discusses the psychology of trading. We all have these destructive
behaviors. I now resist the temptation to open new trades in the days before I conduct a
workshop series. This was a destructive behavior that almost inevitably ended in a failed trade. Early recognition, not therapy,
provided a solution.
accept that to some degree we act differently when we plan a trade and again when we
manage the trade. Many traders talk of the difference between paper trading and trading
with money. This highlights the difference in the way our emotions impact on the execution
of our trading plan. This is part of the
psychology of trading, and becoming more aware of these behavioral factors will help
traders to develop better responses that reinforce trading discipline.
understand this is not a call for therapy but at times Brett is not successful in making
this distinction between the process of learning and abnormal behavior.
I found the
book fell into three main, informal sections. In the first part of the book there is a
great deal of useful information about the psychology of trading. In the middle section of
the book there is a subtle slide into a focus on the psychological problems of specific
traders. Like any collection of case studies, these are revealing and offer some
innovative strategies. Readers can use the key points in italics to locate the relevant
case study examples when re-reading the book.
The third part
of the book drifts towards extremes. The case studies selected show more extreme
behaviors. They slip towards the cliche versions of the relationship between psychology
and trading. I suspect that those traders who exhibit these extreme behaviors are the
least likely to read the book. Traders who do not require therapy may end up reading these
sections with the same morbid fascination they bring to the detailed autopsy reports of
Patricia Cornwell novels.
Brett is a firm
believer in the relationship between body and mind or biometrics. Readers
interested in exploring these relationships further as applied to trading will find the
third section of the book useful. It contains some interesting and challenging ideas, but
again I found them towards the extreme edge of trading behavior.
This is an
interesting book. I found interesting nuggets and ideas spread throughout. The last
chapter is particularly good and thought provoking. Experienced traders will find much to
ponder. New traders are more likely to dismiss it because they often have yet to
appreciate the role psychology plays in our trading success.
View our Privacy and Internet Security Policy
guppytraders.com Pty Ltd,
ACN 089 941 560