Trading In The Zone PDF Free Download

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TRADING IN THE ZONE MASTER THE MARKET WITH CONFIDENCE, DISCIPLINE AND A WINNING ATTITUDE MARK DOUGLAS Foreword by Thorn Hartle NEW YORK INSTITUTE OF FINANCE wcw VHDV • Tnnnurn . cvnucv • Tnrvn • cinr.«pnpc Library of Congress Cataloging-in-Publication Data Douglas, Mark (Mark J.) Trading in the zone : master the market with confidence, discipline, and a winning attitude / by Mark Douglas, p. cm. ISBN 0-7352-0144-7 (cloth) 1. Stocks. 2. Speculation. I. Title. HG6041 .D59 2001 332.64—dc21 00 045251 © 2000 by Prentice Hall All rights reserved. No part of this book may be reproduced in any form or by any means, without permission in writing from the publisher. Printed in the United States of America 10 9876 5 4321 This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. . . . From the Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations. ISBN D-73SE-DmM-7 ATTENTION: CORPORATIONS AND SCHOOLS Prentice Hall books are available at quantity discounts with bulk purchase for educational, business, or sales promotional use. For information, please write to: Prentice Hall, Special Sales, 240 Frisch Court, Paramus, N] 07652. Please supply: title of book, ISBN, quantity, how the book will be used, date needed. NEW YORK INSTITUTE OF FINANCE An Imprint of Prentice Hall Press Paramus, NJ 07652 http://www.phdirect.com NYIF and NEW YORK INSTITUTE OF FINANCE are trademarks of Executive Tax Reports, Inc. used under license by Prentice Hall Direct, Inc. DEDICATION This book is dedicated to all of the traders I have had the pleasure of working with over the last 18 years as a trading coach. Each of you in your own unique way is a part of the insight and guidance this book will provide to those who choose to trade from a confident, disciplined, and consistent state of mind. o TABLE OF CONTENTS FOREWORD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi PREFACE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xm ATTITUDE SURVEY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xvii _________________CHAPTER 1___________ THE ROAD TO SUCCESS: FUNDAMENTAL, TECHNICAL, OR MENTAL ANALYSIS? IN THE BEGINNING: FUNDAMENTAL ANALYSIS . . . . . . . . . . 1 THE SHIFT TO TECHNICAL ANALYSIS . . . . . . . . . . . . . . . . . 3 THE SHIFT TO MENTAL ANALYSIS . . . . . . . . . . . . . . . . . . . 4 _____________________CHAPTER 2_______________ THE LURE (AND THE DANGERS) OF TRADING THE ATTRACTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 THE DANGERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 THE SAFEGUARDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Problem: The Unwillingness to Create Rules. . . . . . . 27 Problem: Failure to Take Responsibility . . . . . . . . . . 28 Problem: Addiction to Random Rewards . . . . . . . . . 30 Problem: External versus Internal Control.... 31 _______________CHAPTER 3______________ TAKING RESPONSIBILITY SHAPING YOUR MENTAL ENVIRONMENT. . . . . . . . . . . . . . . 34 REACTING TO LOSS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 WINNERS, LOSERS, BOOMERS, AND BUSTERS . . . . . . . . . . 50 ___________CHAPTER 4_______________ CONSISTENCY: A STATE OF MIND THINKING ABOUT TRADING . . . . . . . . . . . . . . . . . . . . . . . . 58 REALLY UNDERSTANDING RISK. . . . . . . . . . . . . . . . . . . . . . 61 ALIGNING YOUR MENTAL ENVIRONMENT . . . . . . . . . . . . . . 64 ___________CHAPTER 5________________ THE DYNAMICS OF PERCEPTION DEBUGGING YOUR MENTAL SOFTWARE . . . . . . . . . . . . . . . 70 PERCEPTION AND LEARNING . . . . . . . . . . . . . . . . . . . . . . . 74 PERCEPTION AND RISK . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 THE POWER OF ASSOCIATION. . . . . . . . . . . . . . . . . . . . . . . 80 ___________CHAPTER 6_____________ THE MARKET'S PERSPECTIVE THE 'UNCERTAINTY' PRINCIPLE . . . . . . . . . . . . . . . . . . . . 88 THE MARKET'S MOST FUNDAMENTAL CHARACTERISTIC. . 93 _____________CHAPTER 7__________ THE TRADER'S EDGE: THINKING IN PROBABILITIES PROBABILITIES PARADOX: RANDOM OUTCOME, CONSISTENT RESULTS. . . . 102 TRADING IN THE MOMENT. . . . . . . . . . . . . . . . . . . . . . . . . 106 MANAGING EXPECTATIONS . . . . . . . . . . . . . . . . . . . . . . . . . 113 ELIMINATING THE EMOTIONAL RISK . . . . . . . . . . . . . . . . . 120 _______ CHAPTER 8__________ WORKING WITH YOUR BELIEFS DEFINING THE PROBLEM . . . . . . . . . . . . . . . . . . . . . . . . . . 125 DEFINING THE TERMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 HOW THE FUNDAMENTAL TRUTHS RELATE TO THE SKILLS . . . . . . . . . . . . . . . . . . . 130 MOVING TOWARD 'THE ZONE'. . . . . . . . . . . . . . . . . . . . . . 135 ___________CHAPTER 9_________________ THE NATURE OF BELIEFS THE ORIGINS OF A BELIEF. . . . . . . . . . . . . . . . . . . . . . . . . 139 BELIEFS AND THEIR IMPACT ON OUR LIVES . . . . . . . . . . . 142 BELIEFS vs. THE TRUTH. . . . . . . . . . . . . . . . . . . . . . . . . . . 147 ________CHAPTER 10__________ THE IMPACT OF BELIEFS ON TRADING THE PRIMARY CHARACTERISTICS OF A BELIEF . . . . . . . . . . 153 SELF-EVALUATION AND TRADING . . . . . . . . . . . . . . . . . . . . 167 __________CHAPTER 11___________ THINKING LIKE A TRADER THE MECHANICAL STAGE. . . . . . . . . . . . . . . . . . . . . . . . . . 173 THE ROLE OF SELF-DISCIPLINE. . . . . . . . . . . . . . . . . . . . . 179 CREATING A BELIEF IN CONSISTENCY . . . . . . . . . . . . . . . . 184 EXERCISE: LEARNING TO TRADE AND EDGE LIKE A CASINO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189 A FINAL NOTE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 ATTITUDE SURVEY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203 INDEX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209 FOREWORD The great bull market in stocks has led to an equally great bull market in the number of books published on the subject of how to make money trading the markets. Many ideas abound, some good, some not, some original, some just a repackaging of earlier works. Occasionally, though, a writer comes forward with something that really sets him or her apart from the pack, something special. One such writer is Mark Douglas. Mark Douglas, in Trading in the Zone, has written a book that is the accumulation of years of thought and research—the work of a lifetime—and for those of us who view trading as a profession, he has produced a gem. Trading in the Zone is an in-depth look at the challenges that we face when we take up the challenge of trading. To the novice, the only challenge appears to be to find a way to make money. Once the novice learns that tips, brokers' advice, and other ways to justify buying or selling do not work consistently, he discovers that he either needs to develop a reliable trading strategy or purchase one. After that, trading should be easy, right? All you have to do is follow the rules, and the money will fall into your lap. At this point, if not before, novices discover that trading can turn into one of the most frustrating experiences they will ever face. This experience leads to the oft-started statistic that 95 percent of futures traders lose all of their money within the first year of trading. Stock traders generally experience the same results, which is why pundits always point to the fact that most stock traders fail to outperform a simple buy and hold investment scenario. So, why do people, the majority of whom are extremely successful in other occupations, fail so miserably as traders? Are successful traders born and not made? Mark Douglas says no. What's necessary, he says, is that the individual acquire the trader's mindset. It sounds easy, but the fact is, this mindset is very foreign when compared with the way our life experiences teach us to think about the world. That 95-percent failure rate makes sense when you consider how most of us experience life, using skills learned as we grow. When it comes to trading, however, it turns out that the skills we learn to earn high marks in school, advance our careers, and create relationships with other people, the skills we are taught that should carry us through life, turn out to be inappropriate for trading. Traders, we find out, must learn to think in terms of probabilities and to surrender all of the skills we have acquired to achieve in virtually every other aspect of our lives. In Trading in the Zone, Mark Douglas teaches us how. He has put together a very valuable book. His sources are his own personal experiences as a trader, a traders coach in Chicago, author, and lecturer in his field of trading psychology. My recommendation? Enjoy Douglas's Trading in the Zone and, in doing so, develop a trader's mindset. PREFACE The goal of any trader is to turn profits on a regular basis, yet so few people ever really make consistent money as traders. What accounts for the small percentage of traders who are consistently successful? To me, the determining factor is psychological—the consistent winners think differently from everyone else.I started trading in 1978. At the time, I was managing a commercial casualty insurance agency in the suburbs of Detroit, Michigan. I had a very successful career and thought I could easily transfer that success into trading. Unfortunately, I found that was not the case. By 1981, I was thoroughly disgusted with my inability to trade effectively while holding another job, so I moved to Chicago and got a job as a broker with Merrill Lynch at the Chicago Board of Trade. How did I do? Well, within nine months of moving to Chicago, I had lost nearly everything I owned. My losses were the result of both my trading activities and my exorbitant life style, which demanded that I make a lot of money as a trader. From these early experiences as a trader, I learned an enormous amount about myself, and about the role of psychology in trading. As a result, in 1982, I started working on my first book, The Disciplined Trader: Developing Winning Attitudes. When I began this project I had no concept of how difficult it was to write a book or explain something that I understood for myself in a manner and form that would be useful to other people. I thought it was going to take me between six and nine months to get the job done. It took seven and a half years and was finally published by Prentice Hall in 1990. In 1983, I left Merrill Lynch to start a consulting firm, Trading Behavior Dynamics, where I presently develop and conduct seminars on trading psychology and act in the capacity of what is commonly referred to as a trading coach. I've done countless presentations for trading companies, clearing firms, brokerage houses, banks, and investment conferences all over the world. I've worked at a personal level, one on one, with virtually every type of trader in the business, including some of the biggest floor traders, hedgers, option specialists, and CTAs, as well as neophytes As of this writing, I have spent the last seventeen years dissecting the psychological dynamics behind trading so that I could develop effective methods for teaching the proper principles of success. What I've discovered is that, at the most fundamental level, there is a problem with the way we think. There is something inherent in the way our minds work that doesn't fit very well with the characteristics shown by the markets. Those traders who have confidence in their own trades, who trust themselves to do what needs to be done without hesitation, are the ones who become successful. They no longer fear the erratic behavior of the market. They learn to focus on the information that helps them spot opportunities to make a profit, rather than focusing on the information that reinforces their fears. While this may sound complicated, it all boils down to learning to believe that: (1) you don't need to know what's going to happen next to make money; (2) anything can happen; and (3) every moment is unique, meaning every edge and outcome is truly a unique experience. The trade either works or it doesn't. In any case, you wait for the next edge to appear and go through the process again and again. With this approach you will learn in a methodical, non-random fashion what works and what doesn't. And, just as important, you will build a sense of self-trust so that you won't damage yourself in an environment that has the unlimited qualities the markets have. Most traders don't believe that their trading problems are the result of the way they think about trading or, more specifically, how they are thinking while they are trading. In my first book, The Disciplined Trader, I identified the problems confronting the trader from a mental perspective and then built a philosophical framework for understanding the nature of these problems and why they exist. I had five major objectives in mind in writing Trading in the Zone: To prove to the trader that more or better market analysis is not the solution to his trading difficulties or lack of consistent results. To convince the trader that it's his attitude and 'state of mind' that determine his results. To provide the trader with the specific beliefs and attitudes that are necessary to build a winner's mindset, which means learning how to think in probabilities. To address the many conflicts, contradictions, and paradoxes in thinking that cause the typical trader to assume that he already does think in probabilities, when he really doesn't. To take the trader through a process that integrates this thinking strategy into his mental system at a functional level. (Note: Until recently, most traders were men, but I recognize that more and more women are joining the ranks. In an effort to avoid confusion and awkward phrasing, I have consistently used the pronoun 'he' throughout this book in describing traders. This certainly does not reflect any bias on my part.) Trading in the Zone presents a serious psychological approach to becoming a consistent winner in your trading. I do not offer a trading system; I am more interested in showing you how to think in the way necessary to become a profitable trader. I assume that you already have your own system, your own edge. You must learn to trust your edge. The edge means there is a higher probability of one outcome than another. The greater your confidence, the easier it will be to execute your trades. This book is designed to give you the insight and understanding you need about yourself and the nature of trading, so that actually doing it becomes as easy, simple, and stressfree as when you're just watching the market and thinking about doing it. In order to determine how well you 'think like a trader,' take the following Attitude Survey. There are no right or wrong answers. Your answers are an indication of how consistent your current mental framework is with the way you need to think in order to get the most out of your trading. ATTITUDE SURVEY 1. To make money as a trader you have to know what the market is going to do next. Agree Disagree 2. Sometimes I find myself thinking that there must be a way to trade without having to take a loss. Agree Disagree 3. Making money as a trader is primarily a function of analysis. Agree Disagree 4. Losses are an unavoidable component of trading. Agree Disagree 5. My risk is always defined before I enter a trade. Agree Disagree 6. In my mind there is always a cost associated with finding out what the market may do next. Agree Disagree 7. I wouldn't even bother putting on the next trade if I wasn't sure that it was going to be a winner. Agree Disagree 8. The more a trader learns about the markets and how they behave, the easier it will be for him to execute his trades. Agree Disagree 9. My methodology tells me exactly under what market conditions to either enter or exit a trade. Agree Disagree 10. Even when I have a clear signal to reverse my position, I find it extremely difficult to do. Agree Disagree 11. I have sustained periods of consistent success usually followed by some fairly drastic draw-downs in my equity. Agree Disagree 12. When I first started trading I would describe my trading methodology as haphazard, meaning some success in between a lot of pain. Agree Disagree 13. I often find myself feeling that the markets are against me personally. Agree Disagree 14. As much as I might try to 'let go,' I find it very difficult to put past emotional wounds behind me. Agree Disagree 15. I have a money management philosophy that is founded in the principle of always taking some money out of the market when the market makes it available. Agree Disagree 16. A trader's job is to identify patterns in the markets' behavior that represent an opportunity and then to determine the risk of finding out if these patterns will play themselves out as they have in the past. Agree Disagree 17. Sometimes I just can't help feeling that I am a victim of the market. Agree Disagree 18. When I trade I usually try to stay focused in one time frame. Agree Disagree 19. Trading successfully requires a degree of mental flexibility far beyond the scope of most people. Agree Disagree 20. There are times when I can definitely feel the flow of the market; however, I often have difficulty acting on these feelings. Agree Disagree 21. There are many times when I am in a profitable trade and I know the move is basically over, but I still won't take my profits. Agree Disagree 22. No matter how much money I make in a trade, I am rarely ever satisfied and feel that I could have made more. Agree Disagree 23. When I put on a trade, I feel I have a positive attitude. I anticipate all of the money I could make from the trade in a positive way. Agree Disagree 24. The most important component in a trader's ability to accumulate money over time is having a belief in his own consistency. Agree Disagree 25. If you were granted a wish to be able to instantaneously acquire one trading skill, what skill would you choose? 26. I often spend sleepless nights worrying about the market. Agree Disagree 27. Do you ever feel compelled to make a trade because you are afraid that you might miss out? Yes No 28. Although it doesn't happen veiy often, I really like my trades to be perfect. When I make a perfect call it feels so good that it makes up for all of the times that I don't. Agree Disagree 29. Do you ever find yourself planning trades you never execute, and executing trades you never planned? Yes No 30. In a few sentences explain why most traders either don't make money or aren't able to keep what they make. Set aside your answers as you read through this book. Afte you've finished the last chapter ('Thinking Like a Trader'), take the Attitude Survey again—it s reprinted at the back of the book. You may be surprised to see how much your answers differ from the first time. ACKNOWLEDGMENTS I would especially like to thank all of the traders who bought the signed limited edition manuscript of the first seven chapters of this book. Your feedback gave me the inspiration to add the additional four chapters. Next, I would like to thank fellow traders Robert St. John, Greg Bieber, Larry Pesavento, and Ted Hearne for their friendship and the special ways in which each of them contributed to the development of this book. I would also like to acknowledge my friend, Eileen Bruno, for editing the original manuscript; and, at Prentice Hall, Ellen Schneid Coleman, Associate Publisher, for her professionalism and help in smoothing the path to publication, and Barry Richardson, Development Editor, for his help in shaping the introduction. His time and talent are greatly appreciated. CHAPTER 1

We know how attitude is important for achieving a better life and things. You will come to know attitudes and disciplines are also important in the sector of trading. Trading is no longer a game of luck. The book, Trading in the Zone revolves around these aspects. So stay put if you are curious to learn more. Here is a complete review of the book Trading in the Zone and not to mention a free pdf of the book.

Summary of Trading in the Zone Book

The main theme of Trading in the Zone is about trades confident, discipline, challenges, and plans.

The book revolves around Trading and how to trade successfully. Here are the 4 main ideas that were shared in the book.

  1. Predicting a trade and executing that; here is a big difference.

Predicting a trade is easy but executing it is complex. It needs confidence, humility, and discipline to execute.

  1. Managing your fear is one of the most important things a professional trades need to learn.
  2. To become successful you have to forget about the outcome you will receive after the trade but to focus on the processes and steps of trading. Discipline is the key here.
  3. Here are some principles of consistency trading you need to follow:
  • Identify edges
  • Calculate the risks
  • Don’t hesitate
  • Monitor your suspicion
  • Accept the risk you are taking

Review of Trading in the Zone

I personally am not a trading person. Risking things is not my thing. But for a book enthusiastic, I read the book once, sitting in a library. This book is straightforward for everyone. The concept was very easy to follow and maybe for the beginners level trader, this book might be a hit.

The book will give you an idea about what trading is and how it related to the idea of possibilities and probabilities. It is a very cool and simple way to look at trading. So this book will make a beginner less fearful of trading.

Trading in the zone will make you learn about skill development and its importance in trade execution. Which will void the idea that trading is the play of luck? But it is not! You will get this idea after completing the book.

The book was written with little to no absurd ideas. Mark Douglas is a very successful trader and it is good to see how he views trade. Lastpass lost master password.

The writing was flawless and the ideas were easy to follow. For anyone who is new to the trade and willing to learn to trade this book is a must.

About the Author

Mark Douglas is an American Author and trader born in Illinois. He is known for his trading books and guidelines. Mark was also the president of the Trading Behavior Dynamics company. His book Trading in the Zone made him popular.

Mark has written 73 books that have ratings on Goodreads with more than 12000 people rating them. He wrote many books but among them, some stand up quite fine. The pampered Wife, Containment Theory, Knock off Ships work and Trading in the Zone are well received.

On 12 September 2016 Mark Douglas died in his house Scottsdale Arizona.

Detail Information About Trading in the Zone eBook

FAQ:

Was Mark Douglas a successful trader?

In the year Nineteen ninety, Mark Douglas debuted as an author by The Disciplined Trader. The book gained him reasonable acceptance and attention. But Mark Douglas got much of his prosperity for the book Trading in the Zone in 1990. Mark Douglas’s net worth is equal to 16 million dollars roughly. So you get the idea.

Trading In The Zone Pdf Free Download

Can Trading Make You Rich?

Trading In The Zone Pdf Free Download Version

Trading forex can be a lucrative idea or can make you rich if you have a huge amount of money in hand to invest or you are really skilled in currency trading. For average trading, instead of making you, rich trading can rip you off. Trading is a stony highway with enormous casualty and potential bankruptcy.

How can I get rich in my 20s?

There are so many things that can make you rich in your early 20s. Here are some of the points you can pursue;

  1. Have a plan
  2. Maximize your potential earning
  3. Have lots of streams of earning
  4. Create passive income
  5. Reduce living expenses
  6. Plan for long term
  7. Take calculated risks

Ratings:

Story: 4/5

Engagement: 5/5

Characters: 4.5/5

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Writing:4.5/5

Length of the Story:4/5

Creativity: 4.5/5

Overall: 4.3/5

Amazon: 4.5/5

Trading In The Zone Audiobook

Goodreads: 4.2/5

Trading In The Zone Audio

Trading in the Zone covers the personal self facets that prevent us from being a better trader. This book reveals trading to its core. For a beginner, it also introduces the idea that trading is beyond rules. So everything about the psychological aspect that falls into trading is discussed here. This book is recommended to the trading enthusiast.

Trading In The Zone Pdf Free Download Torrent

Here is an eBook version of Trading in the Zone PDF for free to download as promised.