Jason Williams’ book ‘The Mental Edge in Trading’ is fairly unknown and severely under-rated in trading circles. Frankly, if you’re a newer investor and ready to be completely honest with yourself, this is THE book to get a very quick read on your own flaws and how to improve your trading.
Here’s a list of a few notable insights from the book. Note these are my notes and not quotes.
- To determine optimal risk tolerance, start trading small and slowly increase size
- Don’t focus on dollar gains, instead focus on profit goals
- Over-trading is a bottomless pit of losses
- The peripheral damage from one bad trade often masks itself as other problems
- Always ask if you’re showing the market enough respect
- Strong emotional responses are always counterproductive
- elite traders notice their emotions sparking
Results of being too anxious:
- having too many positions
- taking a trade before it’s signal (anticipating the signal)
- trading poor markets trying to nail a heroic rebound trade
Enjoy being a trader regardless of your performance.
For more, check out the book: The Mental Edge in Trading by: Jason Williams
Thanks for reading!