Book Review – Trading in the Zone

Trading in the Zone takes you through the fascinating world of human mind, explaining in depth the mental approach to trading. We all have fears, responsibilities, beliefs, perceptions, and the book explains us how they interfere when we are trading. Even the best traders may go through difficult times, be scared and lose their objective vision of the market. Many traders lack of consistent profits even if they have profitable systems. Trading in the Zone shows us what may be the causes and gives suggestions to achieve the right attitude towards trading.

 

3-stars

 

 

book-trading-in-the-zone-cover
Trading in the Zone Cover

Title: Trading in the Zone: Master the Market with Confidence, Discipline and a Winning Attitude

Published: January 2001

Author: Mark Douglas

Suitable for:

  • Experienced Traders
  • Traders with good systems unable to keep consistent profits

Main Topics:

  • Trading Psychology

 

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Content

Trading in the Zone is not directly related to Forex trading, the content is more focused on trading psychology regardless of the market. The author explains in depth the mechanisms of our mind, supporting the theory with real examples.

The book opens explaining why trading is so attractive and at the same time so dangerous for many people, continuing with the concepts of responsibility and risk. A trader usually refuses to assume responsibility for a losing trade and tends to blame some external cause. The trader also must understand the risk and learn that his/her consistency is a state of mind.

You will be described how to look at the market objectively, considering only the facts, because the market is never with you or against you, the market is uncertain, in the meaning that there is no 100% guarantee direction and anything can happen. The successful trader thinks in terms of probabilities, trading the opportunities, managing the expectations and eliminating the risks derived from emotions.

A few chapters are dedicated to the concept of beliefs, how they are created and how they impact our attitudes, trading included. Having clear what beliefs are and where they are from helps the trader to improve his/her trading skills and consistency.

In the last chapter the reader is invited to perform an exercise so that he/she can achieve the correct state of mind and attitude to become a consistent trader.

I believe some of the concepts presented are too easy, furthermore, often the explanations are too detailed losing the purpose of being a book for traders.

Writing Style

The reading of this volume is not easy, the sentences are long, the language very articulated and the terms technical. The flow goes slow and may result boring at times. Be prepared to be focused if you want to understand the concepts.

Value

I am not able to find a great value in this piece of literature. The concepts presented are often too easy and trivial. The book is relatively old (2001) and I do not believe that the content provides many benefits. As a note I must add that on the contrary, many readers have found the book interesting and very useful.

Conclusion

If you want to understand mechanisms such as “Why we are afraid of enter a trade”, “Why we don’t close a losing trade”, “Why we never blame ourselves for losing trades”, “Why we can’t watch the market objectively” and “Why we are not consistent” this is the book for you. The author will take you through the processes in the human mind, helping you to understand causes and consequences so that you can become a better trader. On a sad node, the book is not very engaging and be prepared to focus on the reading, moreover, some of the concepts may result trivial.

 

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