It’s so easy to get enamored with charts, fundamental and technical analysis, candlestick reading, and indicators…
Because you think mastering those things will dramatically improve your trading.
They probably will…
However, it doesn’t matter how good you are at any of that stuff if you can’t do this one thing…
You see, in trading, It’s you versus you…
So today I’m giving you a tip on how to improve yourself and your trading (with a little help from a trading psychologist)…
Why This Is My #1 Trading Book Recommendation
There are a ton of trading books out there on fundamental and technical analysis, chart patterns, and candlesticks…
But if you want to experience real personal growth, you have to look inside first. You have to know your every fault, every strength, and when you have an edge.
If you’re dealing with stress from your job, a busy personal schedule, or a tough situation at home — you’re probably not at the top of your game mentally. And that can all have a negative impact on your trading.
So to help you develop and maintain good trading psychology, I cannot recommend the book, “The Daily Trading Coach” by Brett Steenbarger, enough.
I don’t just recommend it because of all the lessons to help you improve your mental game and edge…
I recommend it so much because I think it’s a book every trader needs — no matter what your strategy is.
Here are some reasons why I love recommending this book…
You Don’t Need A Lot Of Time
Trading books can be long and repetitive. And they can take a ton of time to get through…
I don’t mind because I love to read … But I know not everyone does.
That’s what makes this book so great…
Each chapter is broken up into short lessons that are about two pages long.
So even if you’re stretched for time or can’t stand to read a book, you can still get in some quick lessons and then go about your day.
That makes it easy to fit in the time to read. Plus…
It Can Help You Every Day
I bought “The Daily Trading Coach” when it first came out. And I read the whole thing…
Then I read it about two more times.
But instead of pushing through to read the whole thing, I read a lesson each morning.
Before I turned on my computer and opened my trading platform, I took a few minutes while I drank my coffee to read a lesson. I would even take notes and journal a bit about what I read or how I could use the lesson in my trading.
It’s like a daily devotional book that can help you get 1% better every day — if you read it!
It even offers…
Real-Life Solutions
Each lesson includes a short snippet you can use to help you coach yourself…
And they come from a world-renowned trading coach who is a trader himself.
Struggling with negative thoughts?
Dr. Steenbarger suggests joining a trading community.
Having others around to listen to you can snap you out of the negative talk you might not even realize you have. You can also listen to how others speak to you … Most of them won’t tear you down …They’ll try to encourage you, and that’s something you can learn to do for yourself.
Considering sizing up your positions?
Lesson 77 includes a tip that you might not have thought of…
Doubling your position size can have the same effect as your regular position size in a market that’s experiencing double the volatility.
Market volatility or the volatility of an individual stock is something a lot of traders don’t think of when sizing up. And having double your size in a twice as volatile market can result in massive losses. And that can have a negative impact on your trading psychology.
These are just two examples I found opening the book. And there are 101 lessons in this book!
I’m sure there’s more than one lesson that will resonate with every trader.
So the lesson here is to take some time each morning before you start your trading day and check in on yourself.
How’s your trading psychology?
Dig deep to find the reasons behind your behavior and what’s plaguing you. Once you know what it is, you can start to work on it.
This book can help you do that ‘daily.’
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade