Some books, if you read them five times, it would be little in their regard and in developing yourself, and even if we wrote about them hundreds of times, we would not do them justice...
Here is a summary of the book (Trading in the Zone) by Mark Douglas.
(Trading in the Zone).
1. "The Zone" is a mental state that traders enter where they do not feel fear, anxiety, or pressure.
2. Thinking in Probabilities (Thinking in Probabilities)
This is the essence of Douglas's philosophy. He sees that the professional trader thinks like a "casino owner" and not like a "gambler":
3. The comforting truth:
"You do not need to know the future"
The greatest psychological pressure on the trader is trying to "predict" what will happen. Overthinking what is out of reach is one of the factors of fear.
4. The five principles of confidence (The 5 Fundamental Truths)
Douglas laid out 5 truths that you must engrave in your mind to trade peacefully:
* Anything can happen:
The market is not always predictable.
* Every moment is unique:
What happened yesterday does not guarantee what will happen now.
* Random distribution:
Winning and losing trades come in random order, so do not be saddened by a single loss.
* The Edge:
It is merely an indication that the probability of something happening is greater than the probability of something else occurring.
* Independence from the outcome:
You must separate your emotions from the outcome of the current trade.
5. Breaking the link of "psychological pain"
Douglas clarifies that we associate loss with personal failure. His philosophy aims to transform loss from a "wound to dignity" into merely an "operating cost" (Business Expense), just as a shop owner pays rent for their store.
In summary:
Mark Douglas's philosophy can be summarized in one sentence:
"Trading is not a battle against the market; it is a battle against your own beliefs and expectations."
The truth you will derive from reading the book is that you must eliminate trading with your emotions; instead, you should rely on very strict rules, do not exceed them, and do not strain yourself in them...
May God grant us and you from His vast grace.