The Disciplined Trader: Developing Winning Attitudes

Must read for traders who want to understand and explore trading and the psychology of trading.

Mark Douglas writing style is very Zen, but the lessons are vital so it's worth the slog. It took me three WEEKS to get through the first 80 pages. At first the concepts were downright weird, and he delivers them in a slow-pitch fashion. There were hardly any concrete examples or analogies to really sink my teeth into. It didn't feel like a standard book. He doesn't seem to observe any of the standard conventions about clarity, brevity, expansiveness, repetition, or other typical tools. Granular at some levels, yet macro at others. Nothing in the middle, which is where a guy like me WANTS it to go. I WANTED somebody to take me by the hand and say, "Here's HOW you change yourself. "Do this assessment / self-evaluation form, then "Do the exercises for the 'foundation' areas everybody needs, then "Do these other exercises specifically for the areas you suck at worst, then "Do them for Y weeks, and rinse and repeat as necessary until you have the Core Skills." I didn't WANT to learn this weird Mark Douglas way. It wasn't fun. It wasn't hip. But I persevered, and the light at the end of the tunnel was not a train. I would learn a principle then find out I had only learned PARTS of it - there was actually something bigger, broader, and more all-encompassing above it. Criminitly... I'm starting to sound like Mark. He'll give you principles, but you'll still have to learn WHEN and HOW to apply WHICH principles. Here's an example in my own voice, adapted from the book: The old trading mindset says, "when BAD things happen, kick in either fight or flight reaction." The new mindset says, "When INTERESTING things happen, OPEN YOUR EYES, learn from them and DELIBERATELY choose a response.... Studying this book is almost like watching one of the cooking shows on PBS. Those guys ACT like they're going nice and slow, and that you have plenty of time to keep up. But the truth is, They're burning rubber and you don't have a snowball's chance unless you taped the dang show and can re-wind at will. ... One of the things about this book - Mark seems to be a shockingly humble guy. He doesn't present himself as the world's perfect trader. Yes, he has street cred, but he doesn't present it like that at all. He wants you to know the pain he went through, so you can avoid it yourself. Not only does he see the big picture, he sees the ugly gory details... -Norm Chambers

This book clearly explains how BELIEFS drive cognitive functioning. If you are interested in more accurately perceiving object reality (rather than your filtered versions of it) then this book is for you. Douglas explains how beliefs filter reality. He then goes on to explain how to manage your beliefs, such that you become more adaptive and learn faster from experience. He provides specific mechanical steps for engaging in belief change. This book is actually about becoming more fully conscious ! Douglas shows you how. Douglas confirms the findings of Ariel and Mack in the book INATTENTIONAL BLINDNESS. To appreciate this book, you really do have to understand the IB phenomenon as described in that book... An earlier reviewer quotes this from the book, poking fun at it: "Our committed expectations about the future will act as a force on our perception of market information to control its flow into our mental system in such a way as to avoid a confrontation with anything that doesn't conform with what we already believe is possible." What Douglas is saying is simple: predictions are beliefs, and you will automatically ignore data that invalidates your beliefs. Beliefs, including predictions and judgments, are in fact filtering your perception of objective reality. This means that what you believe has everything to do with what you notice or perceive. This book is actually a classic, from a layman, on cognition and cognitive process. The biggest contribution to cognitive science here is the coverage of fear and how fear narrows perception in a very dangerous way for traders. Approach the book as a cognitive science book written by a very experienced and knowledgeable layman and you'll enojy this book tremendously. The subject matter is applicable well beyond the trading domain. However, since trading is so psychologically demanding, it is in fact a laboratory for understanding cognition and cognitive effects produced by emotions like fear. Buy this book if you want the inside scoop on how you actually are perceiving the world around you.

Mark Douglas is a prophet. What he has uncovered in this book and even more so in his next book (Trading in the Zone) is groundbreaking. Most people approach trading as a function to make money but no one really thinks long and hard as to how our personal believes, attitude and perception is the most important fundamental to making money in the markets. The Discipline Trader tries to unravel the ways a mind can block us from thinking like a trader and thus create our own perception of fear and false believes. The book also goes deep into how the mind works at times when the threat of loss is always present and ways to counteract that. I personally have found immense benefit from his work. Only read his work with extraordinary focus and faith. Any conflict or distraction you bring to this book will act as a force in causing you to miss the real message. RIP, MD.

A master piece. One of the best book you will find out there.

Highly recommended.

If you're struggling with your trading career , read this maybe something is lacking. Best book ever.

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Un libro che appare tra le letture consigliate da J Ross ; a mio vedere un supporto importante rivolto a tutti coloro che intendono cominciare ad occuparsi di trading