Developing Winning Attitudes - The Disciplined Trader

The concept of the book actually states on its cover -- Discipline.

Learn everything about discipline and you are good to go. What irritates me is that this book lacks the fundamental psychological analysis (e.g.: psychoanalysis), offends the most valuable business principle (i.e.: concise/KISS) and also misses the personal touch (lack of examples, stories). So it is hard to categorize it as anything but a twaddle.

Save your money and read something that demonstrate the discipline, instead of being told to be disciplined.

Author Mark Douglas explains that he lost almost everything he owned because of bad trading decisions. The experience led him to rigorous self-examination, and he discovered that emotions, especially fear, had led him to trade imprudently. He went on to write this straightforward, very penetrating explanation of the role of beliefs and emotions in trading. This is not an abstract academic exercise. Douglas is a trader talking to traders. He is thorough and practical in his analysis and advice. At times, his style may be awkward, stilted and even cumbersome; however, these flaws do not prevent him from communicating important, useful information. Although the book is specifically about emotional and psychological factors as they affect trading, readers are likely to notice that these influences are active in other dimensions of their lives as well. getAbstract finds that this is quite a good little book that has stood the test of time, despites changes in the technology of trading.

Mark Douglass does an excellent job of describing the inherent difficulties that every trader has encountered during the course of their trading careers. Douglass shares plenty of insight into the pitfalls that he experienced after he decided to quit his otherwise boring job and move to Chicago to pursue the volatile futures markets. After a short stint with personal bankruptcy, Douglass put his life back together and began his quest to discover the essential elements that can turn an otherwise average trader who basically breaks even into a superstar trader who makes millions. Of particular interest in this book is the section on the psychology of fear or indecision. The author puts together a rather detailed section on the emotions that trader's attach to each and every trade and how this emotion has a negative effect on the trader's ability to trade with any worthwhile objectivity. The author contends that these emotions are often the reason why certain traders ! ! cannot change their styles from say scalpers to day traders or from day traders to position traders. Overall, this book is really quite surprisingly an insightful analysis of what makes and breaks traders and how the broken traders can reevaluate their own experiences and climb back on board the path to riches.

The number one reason that I like The Disciplined Trader is that Mark Douglas has no formal training in psychology. Rather, Douglas was trained in the only classroom that matters-the battlefield of actual trading. Even though this book was published in 1990 and there have been a plethora of trading-psychology books published since then, Douglas' material stands out has an innovative classic. He just uses his own gift for seeing the mental shortcomings of the losing trader and spells out his own fresh insights on what we, as traders, need to do to experience real success in trading.
Douglas starts the book out from a perspective that many traders can identify with-crushing defeat. Humbling himself to the higher power that the market is and analyzing the formula for defeat, Douglas shows how he was able to reverse-engineer it to find the formula for success that many of the book's readers over the years have found useful in exorcising their own psychological demons.
Central to Douglas' thesis is that the elements of character that produce success in most of life's endeavors are completely different from those that will make you successful as a trader. To thrive in business or some professional career, you have to work hard to develop the skills that will allow you to be in control of your environment. To build a business empire, you have to be a great leader of people. To become a heart surgeon, you have to learn how to control your scalpel. To be a good mother, you have to know how to discipline your children.
But successful trading, says Douglas, is the process of yielding to the market and being in control only of yourself and the way you respond to changing market conditions. When the idea of being in control of yourself sinks in, you realize that you as a trader get exactly what you deserve from the markets. If you consistently get poor results, you deserve this. If you consistently get great results, you deserve that. The market doesn't care, one way or the other.
As with any book filled with original and profound ideas, The Disciplined Trader isn't always an easy read, particularly as it slogs through the painful process of pummeling away at our self-destructive mechanisms. Fortunately, as with life, the journey provides a reward and Douglas spends the final chapters of the book explaining practical techniques that will help you to "get it together" as a trader.

The book is tedious but worth reading over and over until you understand the concepts. I traded myself broke until I was forced to stop trading. It's amazing how much you can learn when you are forced to stop trading. I started to see what I did wrong before: not in my market analysis but all in my head. Then I found this book and everything clicked. It's also amazing how fast your equity curve can go up when you have the right mind-set. Now I read the book again whenever I fall into a trading rut and I've read this book(also Trading in the Zone) several times over.

Having read Jake Bernstein & Larry Williams' books, I can categorically state that Mr. Douglas "wins" hands-down in the psychology department. Most of Jake Bernstein's several books are just re-hashes of his first book - and that's what a previous reviewer (who can't even spell) calls an expert??? Mr. Douglas - in both "The Disciplined Trader" and "Trading in the Zone" brings new and relevant insights into the mind of a successful trader. That's what I call an "expert." If it weren't for Mr. Douglas' books, I'd be out of the business and working as a secretary or waittress, instead of being what I wanted to be - a trader who makes enough money to live the way I want to!

This book is one of the greatest books on Trading Psychology I have ever read. If you want to learn the mental nuances and workings of the inner mind of a trader, and what makes the difference between winners and losers this book will tell you. Douglas has some absolutely brilliant points about how fear paralyzes traders at the 'moment of truth'. My only criticism would be that I would like to have seen more detailed exercises into some of the techniques he discusses for removing 'negative charges' stored in memories of trading experiences. Overall, a book that can bring to light the mental conditions that separate winners from losers - worth every penny and then some.

Mr. Douglas finally lays it all bare. Successfull traders have the discipline to stop their losses.
This is one of three books that I keep handy when I am working with clients. Many futures traders don't understand how to properly trade, they have a all or nothing approach.
Mr.Douglas forces average investors to be introspective and face their demons of fear and greed. Once you take control of these emotions you are on your way to being a disciplined trader. This book along with my book, Futures For Small Speculators, will help any beginning or experienced trader literally put their money where their mouth is, on profits.
Great classic and should be required reading for all those that consider themselves traders.

This book is one of the greatest books on Trading Psychology I have ever read. If you want to learn the mental nuances and workings of the inner mind of a trader, and what makes the difference between winners and losers this book will tell you. Douglas has some absolutely brilliant points about how fear paralyzes traders at the 'moment of truth'. My only criticism would be that I would like to have seen more detailed exercises into some of the techniques he discusses for removing 'negative charges' stored in memories of trading experiences. Overall, a book that can bring to light the mental conditions that separate winners from losers - worth every penny and then some.

Mr. Douglas finally lays it all bare. Successfull traders have the discipline to stop their losses.
This is one of three books that I keep handy when I am working with clients. Many futures traders don't understand how to properly trade, they have a all or nothing approach.
Mr.Douglas forces average investors to be introspective and face their demons of fear and greed. Once you take control of these emotions you are on your way to being a disciplined trader. This book along with my book, Futures For Small Speculators, will help any beginning or experienced trader literally put their money where their mouth is, on profits.
Great classic and should be required reading for all those that consider themselves traders.

Excellent read on the psychology of trading, but even more so on the psychology of living. I place this book on my top 10 list for anyone, but especially traders. You may feel that the author is being redundant, or taking too much time to say what he has to say. That means you need to slow down and really absorb the material. I believe the author wrote this book the way he did because he realizes that some people might only read it once and good things take time to sink in. Why do people repeat the same mistakes again and again? Because their big egos make them hard-headed. People have an inherent need to be right. Doctors, lawyers, engineers, accountants and most professionals are judged by positive results. It's crucial that you don't make mistakes in these fields.

In trading, a career where "losing" is a regular occurrence, it's critical to completely remove the words "right", "wrong" and "mistake" from your psyche. You put on a trade based on a setup and the moment the setup is invalidated, you exit and move on. Taking a loss quickly is a "win". The only "mistake" you can make is to violate that rule.

Mark Douglas' book takes ample time to get this into your head and in the latter part of the book, he provides exercises to remove barriers that hold you back from success in a field where success is 100% possible, yet more than 90% of the participants fail.

I recommend this book. It deals with understanding and dealing with the emotions involved in trading that could lead to loss regardless of all other factors. Fear is the big one and one can definitely carry the teachings here into the realms of life outside of trading. It's an overall good self-help book. This said, the book is poorly written! Yes, very repetitive and less than lucid in mangy parts. The final recommendation of picking up a trading program and sticking to it is also disappointing. Still, I value the psychology part. It's rather tedious reading but I wish I had learnt it before I let so many gains turn to losses.

I too, was consistently losing as a trader for years. I made a living, but not the kind of living I wanted for myself and family. After reading Mr. Douglas' book, 'The Disciplined Trader' my trading results improved so dramatically I bought his second book 'Trading in the Zone' available through his website ([...]) I can now say that I am a successful trader and will continue to be one, now that I have all the skills I need. Thanks Mr. Douglas!

I really can't understand these traders who put down one star reviews for this book. They obviously just want a "quick fix." Well, Mr. Douglas doesn't give you a "quick fix" he gives you the skills to be "fixed" for a lifetime of profitable trading. Kudos to you Mr. Douglas, and 'too bad' for those who don't think much of this book, because I will be taking your money while you continue to lose at trading!!!

This book is extraordinary. Douglas has put some serious thought into the nature of trading. At first glance it may seem to be too estoric, however, what are the markets? This is for the experienced trader who wants to get to the heart of specualtion. It all comes down to your mind - that is the only thing you can change or control; the market will do what it wants. The book delves deeply into the Philosophy and Psychology of Trading. You need to have trading experience (read this as: 'lots of losses interspersed with gains'), and a good understanding of the markets before you read this book, otherwise it will seem wishy-washy. This, and the Market Wizards books are very important to your trading education. "I laughed, I cried, It was better than 'Cats'. Seriously though, this book is a masterpiece. If Douglas practices what he preaches he must have amassed a fortune. Patience, Discipline, Objectivity, Decisiveness and Consistency are the watch-words he speaks of. James Miles

Being rather new to the industry after a career in specialized medicine, I researched Mr. Douglas' work and found that he has been trading and coaching since the mid-1980's, and has a very good reputation. So I bought his first book, and was duly impressed with his keen sense of the intricacies of trading and the trader's mind. In my opinion, this trading book definately ranks up there in the top ten.

A previous reviewer complained that this book is all psychological, well yes it is but the subtitle "Developing Winning Attitudes" should be a tip off. The basic idea is that our preconceptions can force us to exclude information that we need to make informed decisions. Also our fears create a self-fufilling prophecy of loss. It's a good book, but it is ALL psychological so if you're looking for nuts and bolts look elsewhere. I couldn't give it 5 stars because it is a little verbose and repetitive in some places.

This is a book about human behavior. At the very end, this is a book about trading. If you are willing to believe (or do believe) that trading IS about the effects of human behavior - and little or nothing else - then this book will be a welcome addition to your library. People make a market. People behave in predictable and repeatable ways. That concept is as fundamental as it is technical.

This book came highly recommended by someone I respect, and that is probably the only reason I stuck through it to the end. Long sentences. Lots of repetition. Extended periods of time where trading is never mentioned, even in examples. The author is frustratingly slow to make a point at times. But, in the end, you will realize (as the title implies) how relevant to your trading career this book really is. You will turn back to page one and start again - it's that good and that important.

I have a pile of trading books from all the best authors - in a closet. This book is open on my desk, every day.

One of the biggest challenges new day traders face is "choking" when they should be "stopping-out" for a small loss.
The Disciplined Trader teaches you how get in the right mental frame to "cut your losses fast and let your winner's run"
For those who have studied personal development (ie. Tony Robbins type stuff) a lot of this is review, but this book applies these type of persoanl development strategies to trading.
Day-Trading is 90% mental

The longer you've been trading, the more the book will resonate true. The sooner you can expose yourself to the ideas presented in this book (and "Trading in The Zone", by Douglas) the faster you will see the truth & relevance of them. Then you will know them to be true. I'd recommend reading & re-reading both Douglas' books over a period of time. The concepts presented will then be reinforced by real world experience.
Great book!

instead of this. Douglas had put what he learnt during the 90's (which is a whole decade from the first edition of this) in his latest book "Trading in the zone" and you really can tell the significant improvement between the two. Just take the best out of him and dont compromise for something less.
p.s. I should have given "the zone" a five star instead of four. Please refer to my review of that.

Having personally suffered financially & emotionally in the stock market from lack of discipline and emotional control, i found this book extremely helpful. It identifies many of the emotional distractions that prevent one from seeing clearly,planning & executing well, & provides guidance for resolving & eliminating these distractions. Found it a bit wordy(perhaps needing some editing), but very helpful. It sure impressed upon me the need for discipline & taking personal responsibility in a very unstructured environment such as the markets.Thank you Mark Douglas.

Too many people think in terms of charts, bands, rsi etc....This book takes you away from technical analysis and puts you in touch with the real deal.....emotion and perception.
He points out that in effect you are trading against other peoples emotions and perceptions of market behavior (fear, greed, previous beliefs) that effect both them and you....
A great book! Makes you face some of your own preconceptions about life and trading. Interesting even for non traders as it presents a deep psychological review of where you have been. Get it!

I have really enjoyed ready this book. As trader, I've found that the best books on trading have nothing to do with technical nor fundamental analysis. This is one of the better ones.

This book has taught me the skill of managing the mental energy that often affects my trading, mostly without my even being aware of it. It has taught me how to understand and control that energy so that I can act despite my past experiences.

To the previous posting from Germany - just because you didn't like what you read about doing the work yourself - doesn't mean you should say this book isn't worth getting. I struggled through it myself for quite some time, and then realized the reason I was struggling was because I was expecting Mr. Douglas to give me 'pat' answers to all my trading problems. He doesn't. He just gives you the "tools" to create your own positive trading results. And that, as far as I'm concerned was more than worth the price of the book.

The more you grow in your trading career, the better you will understand this book. Read it over and over, and also his other book 'Trading in the Zone', I can relive my psychological growth path and deeply realize that only a real trader can write a book like this.
People who rate this book 1 star are simply not developed as traders yet.
Tons of books on the market are on the technical aspects of trading, but that is only 10% of this business.

This is a terrific and timely book for traders. Chptr. 16 "THE STEPS TO SUCCESS" I have highlighted, underlined, outlined and memorized. It has the really important information you need to know to be a succesful trader. If you follow his rules you will eventually find the rest of the information you need to trade succesfully. Highly recommended.

This book really delivers what the title promises. I have the same say with the other 5 stars reviewers, so I won't be so wordy; just get hold of this book and digest it before trading. No technical stuff here though, just plain truth on what makes a winner different from a looser. Thank-you, Mark for sharing. I hope to have the opportunity to meet up with you one day!

This book is excellent. It describes the way a successful trader needs to think to trade effectivly. I couldn't understand why I wasn't trading real well considering I was using strategies that worked well in other areas of my life. Trading is different and now I know why. Anyone who enjoys understanding the psychology of success and wants to improve their trading must read this book. I will never again trade the way I had been.

I thought "The Disciplined Trader" had taught me everything I needed to know about trading psychology - boy was I in for a surprise! Mr. Douglas' second book - "Trading in the Zone" is even better! I can't recommend more strongly to any trader to buy both these books - it will be the difference between mediocre and top-notch trading results for you.

After reading this book you'll understand why there are so many people with porfolio's with stocks in them that declined more than say 50% since they bought them.
You'll learn to get rid of your losers asap to free up money for the next opportunity.
A must for everyone that wants to be a more succesfull investor

Absolutley great if you want to become more disciplined.
I really think that this book should be in top 3 of every traders reading list.

Read it and study it like a school book, you will be amazed of the result.

Thanks!

This book has really changed my mind.

I have finally end to search the perfect system from millions at disposition, and I started to change myself to trade better.

The read is not easy, specially at the beginning, but the hard work is an incredible discouvert of trader's mind, and in the lasts pages there are beautiful gems for everyone.

A book of invaluable valour.

If you have never traded before then this book is a must but other than that it's a waste of money and time. I bought the book to learn how to become more disciplined in trading and hoped for strategies and exercises to enhance a discipline for trading. He does give a couple exercises at the back of the book but there are no strategies. The book is full of examples of poor trading due to fear of a loss. (i.e. holding on to your losers). The only thing useful were the exercises but they were fairly weak as well and not worth the purchase of the book. I find exercises like this on the internet at NO COST.

After 2 years of attending classes for trading and endless hours of video seminars. Reading this book finally brought it all together in practical language and step by step logic. Turn your career around, read this book.
Mitchell Chase

After 20 years of searching for system to make me a successful trader it turns out you are what makes a system successful or not. This book is a must for a serious trader on understanding the psychology of what makes you a successful trader.

Seems to be quite a few negative reviews. Must be by people who have never tried to trade. Yes the author is redundant, but by no means is it as redundant as described by others. This is a very good book and a must read for anyone serious about trading.

Get to the point, would be my final assessment of this long winded treasure. I'm not saying that I didn't enjoy reading this book. This book actually held my attention longer than a lot of books on the trading. Entertaining though it was, in the end though I walked away with nothing. This book did not make me rich, in fact it made me about fifty bucks poorer. I don't need a lot of abstract concepts about inner consciousness and outer consciousness. I need a plan, a concrete strategy, something I can use and mold to my own style. This book offers nothing concrete. This book reminds me of The Inner Game of Tennis, which I also consider to be a bunch of bull, but that's just me.

This book probably deserves a 4th star but there was nothing new. I was hoping for more. I really like this guy because I suffered the same fate. I beleive he is honest and sincere.I agree with him. If your already successful buy Market Wizzards if your not have this delivered next day air