Key Points from Book: The Disciplined Trader

As a trader, you have the power either to give yourself money or to give your money to other traders

Painful emotional conditions are basically the result of unfulfilled expectstions

You may not be able to control the markets, but you can control your perception of them in order to achieve a higher degree of objectivity, resulting in a higher degree of shared reality with the markets

Know what to do at the moment it needs to be done, and then doing it without hesitation

As a person’s level of confidence increases, his or her degree of confusion, anxiety, and fear dissipares proportionately

What I began to realize is that I was more than the things i accumulated

Maybe there was no such thing as a failure, unless something positive and useful isn’t learned from the experience

Learn how to accept a loss without any negative consequences. No guilt, anger, shame,mor self punishment

Sometimes only a thorough mental house coeaning can help you throw away failure to make room for success. And exposing yourself to information that may cause you to ask yourself “what if it were true” is the first step to any mental cleansing process

Learning how to let the market tell you how much is enough instead of assessing the potential from your personal value system of how much is enough

You create the game in your own mind based on your beliefs, intents, perceptions, and rules

Only trade with money you can afford to lose. The less meaning the money has, the less potential there is for your personal “how much is enough” issues to contaminate your perception of market movement

The more self accepting you are, the easier it is to learn because you are not trying to avoid certain information

The price for goods and services will be determined by the individual’s needs in relationship to their belief in their ability to fulfill those needs

In the market environment you have to make the rules to the game and then have the discipline to abide these rukes, even though the market moves in ways that will constantly tempt you into believing you don’t need to follow your rules this time

Essentially, what you fear is not the markets but rather your inability to do what you need to do when you need to do itl without hesitation

Quality of energy is the relative degree of positively or negatively charged energy in which the experience is recorded

Positive energy is expansive. It promotes mental growth or learning by creating a sense of confidence, which in turn resukts in an openness to explore and discover the unknown

Traders who are motivated to act out of fear generally aren’t aware that their fear drastically reduces the choices they perceive as available, making their behavior very predictable to an objective observer

Our experiences shape our meanings and then the meanings shape our experiences of the future

Beliefs create definitionsl make distinctions, and shape our perception of environmental information by programming our senses to hear, see, and select information that corresponds with what we believe

In maintaining a balance, many of our responses to environmental conditions are automatic because our beliefs make the response seem self evident, then, in fact, under any given set of environmental conditions alternate experiences exist along side of the experiences our beliefs lockes us into

There will always be more information available in the environment than what our personal limitations will allow us to perceive or experience

What we already know will block what we haven’t learned yet

We have to learn how to value ourselves more and more so that we believe we deserve what we wanr or deserve what we get

Our thoughts can add energy to or detract energy from the wound, depending in what kind of thoughts we choose to think

Change is the result of, first, a willingness to think

Mistakes jsut point the way to something that we haven’t learned yet and obviously need to know

We will behave in a manner that is consistent with the affirmation we make, if we run enough thought energy through that affirmation

You will gain self trust when you establish a set of rules and guidelines to trade by and know that you will always follow those rules without hesitation, regardless of the temptations to do otherwise

Predefine what a loss is in every potential trade. Determine what the market has to look like or do, to tell you that the trade no longer represents an opportunity, at least not an opportunity in the time frame in which you trade

The easiest way to make money is to go with the flow


About Journeyman

A global macro analyst with over four years experience in the financial market, the author began his career as an equity analyst before transitioning to macro research focusing on Emerging Markets at a well-known independent research firm. He read voraciously, spending most of his free time following The Economist magazine and reading topics on finance and self-improvement. When off duty, he works part-time for Getty Images, taking pictures from all over the globe. To date, he has over 1200 pictures over 35 countries being sold through the company.
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