HomeHome SearchSearch MenuMenu Our productsOur products

You hate this trading topic, but it's important!

by , 20 October 2015

In 2013, I spent weeks writing a very important book. A book that I still use today and unfortunately, you don't.

It's called “Trading Building Blocks to your Financial Future”.

Guess how many copies it sold in the first month?

It sold 15…

I'm sure your child would've sold more novels at school than what I sold. I was baffled by how little response I got from the book.

In the book had three of the most essential building blocks you need to learn how to trade. And yet you weren't interested.

Maybe it's because I'm not an expert on the subject, maybe the book name was boring.

Maybe I just didn't understand yet what you wanted.

Or, maybe you only enjoy my trading strategies and trading predictions. I don't know.

Maybe you can tell me?
If you click here I'll give you my brand new Forex report for free called “The seven best Forex indicators”.

But before you go, have a read below for Chris White – one of my trading colleague’s - two favourite books about trading basics.
Maybe he’ll convince you how crucial it is to understand the boring basics, if you want to be a successful trader.

Always remember, 

“Wisdom yields Wealth”
Timon Rossolimos

trsig.jpg

Senior Editor:  Trading Tips 
Head AnalystRed Hot Storm Trader
Author:           94 Top Trading Lessons of All Time  

The two best books about trading psychology
Michael White, Trading Psychology Expert
michael white.png
You may be surprised.

One of these books focuses mainly on the trading aspects. And the other two books are fully focused on business and self development.

However, these two books I can’t help but relate to how I go about trading the markets.

If you apply some tips from these books, then you’ll increase your financial understanding, performance and even your quality of life.

And so, here are my favourite books about trading psychology…

Book #1: Trade less and achieve more - 4 hour working week” by Timothy Ferris

Tim Ferris is an interesting person. After six months of practice and without any other experience, he qualified to the semi-finals of the world championships in the tango. Which I’m sure you know, is a quite difficult dance.

Was he lucky?

I don’t think so. You see, he also won the gold medal at the Chinese Kickboxing National Championships after four weeks of preparation.

Moreover, Ferris developed a well prospering company starting from basically nothing, starting at five thousand dollars debt.

He had also organized his business in such a way that he spent only few hours per week on running it. And this is how he made a huge success in his financial life.

So what’s key to his success?

Defining and focusing on key issues which are crucial to achieve success. 

For example, his championship in kickboxing. He didn’t win it because he had worked hard. Besides, he only prepared 4 weeks for it).  Ferris made it because he had studied the rules of the tournament, found two loopholes and took advantage of them.

He discovered that weigh-ins were one day before the tournament. Hence he used some special dehydration method, lost
28 pounds in 18 hours, weighed in at 165 pounds, and back to 193 pounds.

Thanks to this trick, Ferris competed with the players from three weight classes below him.

He also discovered that if one combatant fell off the elevated platform three times in a single round, his opponent won by default. Hence he had only one fighting technique: pushing people off.

As a result, he won all matches by technical knock-out and became a champion.

How does this all relate to trading?

Many traders work hard, spend tens of hours per week analysing charts, reading market news, books and other materials.

They think that because of their effort they deserve something. Then they lose money and become frustrated

So if you’re one of these traders, then you should know, nobody cares about the time you spend analyzing the charts.

But it’s not a reason to complain. It’s a reason to focus only on issues which are crucial for your financial success and Tim Ferris tells you exactly how to do it.

Book #2: Learn secrets of a successful fund manager - “Black Swan” by Nassim Taleb

Nassim Taleb was a fund manager and made money on Black Swans - rare, “impossible” events. For example you can consider the Dot-com bubble or the Financial Crisis in 2009 as a Black Swan event.

How does Taleb predict these kinds of events? Well, he thinks that is impossible so he doesn’t even try. But despite that, he is able to make money on Black Swans.

How?

Usually traders tend to ignore the happenings of Black Swans. They don’t want to believe it’s true. People don’t like change in nature, and so they convince themselves that everything will be the same. But some Black Swans are insistent.

Once they’re over, people finally agree that Black Swans do occur at the least expected times. And only afterwards, does the world change and prepare for the next type of Black Swan.

When you trade you do the same. When you go long (buy) a trading position, you think that a price will go higher. And then what happens? It goes down instead. But you don’t believe the market is going down and so you hold and wait. And you get to the point where the loss you’ll take is unbearable. The signs were there and yet, you didn’t want to believe it.

My colleague Timon also believes that with trading, you need a system and strategy in place. This way, you’ll trade in a more mechanical and consistent approach. And this will take away what you think and what you guess in the markets.

If you have some trading experience then you know that it’s easy to say that you should follow your plan but it is hard to do it. Of course there are few exceptions, for example my free report, will guide you step by step and tell you how to improve your trading results.

Michael White

Trading Psychology Expert 

Michael White is a trading psychology expert. You can get his free report and based on proven discoveries learn how to become a disciplined trader and master any trading strategy. You can also find more tips on his blog about trading psychology.

PS: If you enjoy or don’t enjoy trading psychology then do yourself a favour and help Timon understand what you’re looking for more withTrading Tips. And Once you’ve completed the questionnaire, Timon is going to send you his new Forex report “The seven best Forex indicators – All yours!”.

Click here to take the short questionnaire now!

PS: Watch our video so you know how to trade anywhere in the world!
how to trade forex anywhere in the world -button.png







 


You hate this trading topic, but it's important!
Rate this article    
Note: 5 of 1 vote

Related articles



Related articles




Trending Topics