Best Readings

Everyone is looking for the Holy Grail in trading but very few realize that the Holy Grail is not some magical indicator but the ability to recognize a day type early on in the day and then adapt your trading accordingly. Mind Over Markets gives you this and James Dalton's explanation is the most comprehensive and makes this difficult concept much easier to grasp.

In Markets in Profile, Dalton has greatly expanded their scope, delving deeply into the ways in which the auction process reveals the actions of all investor time frames. They believe that by understanding timeframe behavior through developing market structure, it is possible to identify asymmetric opportunities that can ameliorate risk and help ensure financial dominance.

Trading in the Zone introduces a whole new mental dimension to getting an edge on the market. Use it to leverage the power of the 'zone' for unprecedented profit. Mark Douglas says: You need to ‘change your thinking’. The goal is to reach a ‘care-free state of mind’. There’s nothing to think about. Take the trade because you have an edge. Then odds, probability and your risk control mechanisms will take care of everything.

The Disciplined Trader can help any trader change the fear of losing into a winning attitude based on the step-by-step approach for learning the mental skills necessary for accumulating the wealth you desire on a consistent basis.

In the end, the key is to learn more about yourself. The most important lesson though is the importance of viewing every single trade as being part of a series of trades. No magic there, just plain and simple math and a bit of psychology to fight irrational fears. You only have to realize it is a game of probability. That's all.

If you read these books from Dalton and Douglas, you will have covered the most important aspects of trading: Method and Mindset.