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:
- over-trading
- 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.
Thanks for reading!
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