The Disciplined Trader: Developing Winning Attitudes | By Mark Douglas

BOOK REVIEW

By Cam R

  

Title: The Disciplined Trader: Developing Winning Attitudes

Author: Mark Douglas

This is the first book by Mark Douglas, author of Trading in the Zone - one of the most recommended books for anyone keen on trading psychology. I really found Trading in the Zone an excellent book on tuning your mindset for trading, and decided to read The Disciplined Trader as well. So on to the review below.

Packaging - 3/5 (Hardcover)

A solid and study hardcover, with a green theme. Most books have a predominantly black colour theme, so having a different colour here is a refreshing and welcome change. The paper is of good quality and can withstand frequent handling. I found the cover design appropriate, with the allusion of a trader who is keenly contemplating something.

Writing Style - 3/5

The writing style is clear, and easy to digest. There are bullet points for key ideas when necessary, and each chapter is further divided into subsections with its own subtopic. It really invites bite-sized consumption. This also makes the book easy to navigate and sections easily remembered. All is fine and good here.

Trading Methods (Specifics) - 3/5

Douglas spends a fair portion of the book going into lengths explaining why anyone who wants to be a successful trader needs to develop a trading methodology, and he makes an extremely compelling (if slightly repetitive) argument for the reason it is so. How he dissects the unique environment that is trading further adds to the case.

Here's a tiny snippet of how he makes the case of traders giving themselves exactly what they deserve:

“Traders put on trades and then take them off when they choose. That decision-making process is the result of the sum total of all the mental components interacting with one another. If we were to inventory all these components, measure the energy they hold, and then balance the components that contribute to a positive sense of self-valuation against the components that contribute to a negative sense of self-valuation, what would be left is a net amount that we value ourselves. This net amount will correspond directly with how much money we give ourselves out of what is available in any given trade, in any day, month, or year, or by the same token how much of our money we give away.”

What he says rings pretty true. I can think of one trader I know, who trades for a proprietary firm. This trader has pretty decent skills and usually makes a decent sum of money by the afternoon. But he somehow manages to give back his gains by night. It doesn't happen all the time, but you can count on it happening most of the time. (I really think he should just not trade at night, but he continues to do so, so…) When talking to him, phrases like ‘I don’t deserve the money’ or ‘I am just lucky’ just seems to drop out of his mouth. He's like the unfortunate poster boy that drives home the point that Douglas makes here.

Trading Management (Soft Skills) - 3/5

Douglas gives a ten steps to success manual at the concluding part of the book, with details for each step. It is pretty good, but I think for a comprehensive walkthrough, his subsequent book Trading in the Zone would be a much better guide. 

Trading Psychology (Mindset) - 4/5

The basic idea is that your beliefs are what drives your action, and subsequently is what leads to your own trading results, good or bad. The strength of The Disciplined Trader lies in how he presents the case of why you need to have a new trading methodology. He does it well so that by the end of the book, you are probably convinced that you need a new methodology, or at least, your mind should be open to seeing the trading environment in a different light. Whereas the strength of Trading in the Zone is that he lets you know how you can get a new trading methodology and walks you through the change process.

Longevity - 4/5

I could definitely see the usefulness of going back perhaps annually to this book, in order to keep the principles of successful trading fresh and in mind.

Value - 3/5

Pretty good value, and one of books on trading psychology that most traders should ought to read.

Things to Watch Out For -

It’s slightly repetitive, so a little patience is needed in going through the book.

Overall - 3/5

Great book on trading psychology, and is definitely a book most traders should at least read through once, if not a few times. After reading this, I would really recommend following it next with Trading in the Zone.

Score Recap:

Packaging - 3/5

Writing Style - 3/5

Trading Methods (Specifics) - 3/5

Trading Management (Soft Skills) - 3/5

Trading Psychology (Mindset) - 4/5

Longevity -4/5

Value - 3/5

Overall - 3/5

Where to Buy:

If you found the above review helpful and want to buy the book, please do consider buying it from my Amazon affiliate link below. The prices are competitive, and any purchase goes a long way in supporting this site. Thank you!

Thank you for reading!

And do check back for new and updated reviews, cheers! :)