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Some highly recommended books

  #453 (permalink)

St. Louis
Trading Experience: Beginner
Platform: thinkorswim, NT8
Favorite Futures: equity and fx futures and options
Leon of Pizza's Avatar
Posts: 133 since Sep 2013
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centaurer View Post
...the causality is backwards.

Do you mean that the positive expectancy is the result of the positive mindset, therefore the mindset had to have existed first? Yeah, that seems inverted at first glance but I took it to mean that it was up to the reader to apply the practice and then look for the result after. Any trading plan will have an expectancy - even if it was never traded. A plan with a demonstrated positive expectancy generates a positive mindset before the first order is placed.

I lifted his summary description of the zone and put it into my personal system manual (paraphrased):

Mark Douglas described being in the zone as:

No fear, no euphoria
No hesitation, no compulsion.
No agenda:
- No need to be right.
- No need to regain lost money.
- No need to take revenge against the other participants.
- No need to avoid the loss (predefined amount).
Confident acceptance of risk.
Peaceful acceptance of any outcome.

And I'm pretty sure this is Douglas:

Thinking in terms of probabilities shifts the basis of right/wrong from the individual trade to a large sample of trades.

Taken together and reduced further, the meaning I took was: Small samples of reality are inaccurate, so don't act like a child during the bad ones.

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