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 |
