FX Sniper
I agree that Bill Williams' book - "Trading Chaos" has some excellent points of view and tools to improve psychological trading. I understand that ultimately success in trading boils down to 30% technical (a proven system) and 70% psychological.
Think about that... 70% of a trader's success in trading is based on psychological issues and thinking the right way. My own experiences over the last 3.5 years have definately shown that the state of mind is far more important than the system used. Yet look at this Trading Community - most of the threads are about a magic system that prints money - often with plenty of charts to show etc.
Here are some suggested books on the psychological side of trading:
1. Mark Douglas - "Trading in the zone" - excellent and he really explains how the mind attempts to sabotage your trading progress. In fact some of the posts in this thread from Mick are clear copy book examples from Douglas' book on typical tarding responses as one journey's through the market experience.
2. Jack Schwager wrote two books - "Market Wizards" and "The New Market Wizards". Both are essentially a documentary of interviews with some of the world's leading traders. Again there are some very strong psychological lessons taught here by these pros.
I started out by using the William's journalling approach and so for 6 months I would wake up at 5am every day (except Sundays) and just write whatever thoughts came into my conscious mind.
What has been interesting for me is that this was the start of a journey of overall self improvement and since then I have really focused on the thoughts that I think (deliberately eradicating negative self talk) and looking to appreciate my lot in life, other people, the world, our Creator etc.
This process combined with a ritual of mediating for between 15mins and 45 mins every day has had a significant effect of my state of mind, my emotions and my outlook on life and guess what... on my trading too. My anger levels have dropped big time, my conscious mind (the drunken monkey - ref. Williams) is a lot less noisy and I am starting to listen to an inner voice that give me a level of intuition from time to time that is scary. I have also started to set goals around pips profit per month and I now spend some time during my mediatation sessions imagining experiencing more winning trades, less stressful losing ones and my capital groming from strength to strength.
I have realised that trading is simply a mirror of me - by changing me (thoughts etc.) I have changed the image in the mirror and the market is a lot more friendly.
I would strongly encourage you all to go on a journey of self improvement not just for better trading but for a better life. Ironically your trading will get better too.
Here's an excellent book that will kickstart your improvement journey - if you really want to live at a new level:
Robin Sharma - "The Monk Who Sold His Ferrari". Brilliant - a real gift. Check out Robin Sharma at
Robin Sharma's web site for more info.
Hope this helps.
Warm regards
Shaun