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

Mark Douglas uncovers the underlying reasons for lack of consistency and helps traders overcome the ingrained mental habits that cost them money. He takes on the myths of the market and exposes them one by one teaching traders to look beyond random outcomes, to understand the true realities of risk, and to be comfortable with the “probabilities” of market movement that governs all market speculation.

Mark began coaching traders in 1982, and has continued to develop seminar and training programs on trading psychology for the investment industry, as well as individual traders. He has been a frequent speaker at seminars across the world, as well as in the U.S., teaching traders how to become consistently successful.

If you are like most people, after your first few losing trades you set about to learn better market analysis. After your next string of losers you learned about risk management. But there’s still one more challenge to conquer&emdash;yourself.

That is the major premise of this book. If it sounds like wishy-washy psycho-babble to you, I’ll only say that I would have agreed — four months ago, before I quit my 20-year technology career, obtained a Series/7 license and joined a professional day-trading firm. I now believe most people would lose money if you gave them 50/50 odds on whether or not it was going to rain tomorrow.

In other words, successfully forecasting the market is not enough. Why not? Well, this book explains why not. It has to do with one’s sense of self-worth, one’s moral judgment of money, one’s work-ethic, one’s tendency to focus on good news while ignoring bad, and other things.

“Zone” was recommended to a friend of mine by a professional floor trader who told him, “I wish I had read it before starting two years ago. Don’t place another trade until you do.” Well said. Does this apply to investors as well as traders? Oh, absolutely! If you have ever said to yourself, “I’m not selling that stock while it’s down, I’ll wait until I have a profit in it,” then for the love of money, read this book.

Finally, read “Zone” before Douglas’ earlier work. If you still want more then read “Disciplined Trader” for a general review plus a deeper exploration into the author’s philosophical and meta-physical theories.