Book Club - The Disciplined Trader

[Susan 111]

Book - Disciplined Trader by Mark Douglas

Meet Weekly for 40 minutes beginning Thursday, November 17th at 12pm ET

On November 17th - meet each other, discuss Rules of club, review Preface & Foreword sections of the book

More Details will follow after Nov 17th

Susan Rizzi has invited you to join a video meeting on Google Meet.

meet.google.com/sat-khuv-rbh

I look forward to learning, sharing and growing with you!

Resume meeting 1/5 - review any additional comments from chapter 3 to 5 and chapter 6

1/12 - any additional comments from chapter 6 & chapter 7

1/19 - chapter 8

1/26 - chapter 9

2/2 -   share your best/worst trades - For your Post this week - you can skip OR you can share trades and/or how you do your monthly trade review with us!!!

2/9 - chapter 10

2/16 - chapter 11

2/23 -  OFF!!

3/2 - chapter 12

3/9 - share your favorite pro trader's tips, how it affected your trading and/or best & worst trades - For your Post this week - you can skip OR you can share trades and/or how you do your monthly trade review with us!!!

3/16 - chapter 13

3/23 - OFF THIS WEEK

3/30 - chapter 14 THIS WEEK ONLY WE WILL MEET AT 1PM ET!!

4/6 - share your best/worst trades - For your Post this week - you can skip OR you can share trades and/or how you do your monthly trade review with us!!!

4/13 - chapter 15

4/20 - chapter 16 & 17

4/27 - Share new datasets, new journaling, new trading plans, etc

5/4 - share your best/worst trades and/or any new fav pro trading tips - For your Post this week - you can skip OR you can share trades and/or how you do your monthly trade review with us!!! ***SHARE the biggest take away from Disciplined Trader & tell us why****

 

 

Edited April 27, 2023 by Susan

[flyingalaska 1]

Great News!  Thanks Susan!

 

[MBambrick 0]

How do we sign up Susan?

 

Thanks Mary

[Susan 111]

You just come and attend!! 

[DollarBill 21]

Quote

 

The kind of insight I gained as a result of this experience is the type of learning process I call a forced awareness. This is where the nature and characteristics of the environment I was operating in were much different from what I believed they were, first out of ignorance, and because I put up mental defenses to block my perception of certain information. Eventually I was forced by the markets to acknowledge many things about myself that I otherwise wouldn't consider. When all the external symbols that represented a major part of my identity were gone, I didn't have any other choice and was forced to perceive myself in new and different ways.

The Disciplined Trader™: Developing Winning Attitudes (p. 30). 

 

There were some many gold mines by the end of the first chapter.  If I had to pick one the above passage really stood out as a driving principle for my trading.  

[Susan 111]

This post highlights the system we will utilize for Book Club!

Book - Disciplined Trader by Mark Douglas

Meet Weekly on Thursday at 12pm ET.  Book Club will run approximately 40 minutes per session.  The below link will be utilized for all meetings.

Susan Rizzi has invited you to join a video meeting on Google Meet.

meet.google.com/sat-khuv-rbh

 

PowerPoint if you missed initial meeting can be viewed here: https://docs.google.com/presentation/d/1jnuEZfXpBiYYDC10FOKIL2Aics6E25tgEcaansCA-dg/edit?usp=sharing

Edited November 14, 2022 by Susan

[Susan 111]

Chapter 1 - Disciplined Trader

1st entry:

W - Either in the beginning or at some point early in their trading career, all traders experience confusion, anxiety, and the pain of failure.  The few traders who pass through this phase to accumulate wealth are those who eventually confront and work through some very difficult psychological issues about what it means to be a trader, and this process of realization and change normally takes several years, even for the best of them.

A- I think Mark is explaining the huge undertaking trading really is psychologically to us and explaining it well.

A - I came in expecting so much so quickly....that is a characteristic that served me well and helped me excel quickly in other areas of my life.  I really respect and understand at this juncture that to be able to call myself (one day) a professional trader; I will really be more well adjusted and balanced psychologically than I ever imagined.  This honestly makes me very happy.  If I have one life; I want to go for it all.  Lots of money is appealing, but becoming the very best version of myself for myself, my family and everyone I know is also incredibly appealing to me.  Maybe I am an odd bird, but that is ok.  I dig this and want to keep growing and becoming that amazing version of me.

2nd entry:

W- Furthermore, I discovered that my mental framework was structured to avoid losses at all costs and in my desperate attempts to do so; I actually created them.

A - Mark is explaining his psychological make up coming into trading and what he worked through...

A- I had to add this as one of my W's because this is my #1 issue.  I am able to overcome it at times with extreme focus/discipline/deliberate practice/etc.  I can usually "let go" on my initial trade, but slowly something deep in me rises to the surface and starts avoiding losses (at least that has been the cadence this week and it has been really choppy which sets me off more to avoid risk/loss).  It is something I continue to work through and if I could pick 1 thing I hope to take from book club - it is to work through this issue and really let go of this fear and become friends with RISK!  I am also working on just deliberate practice and "building proper trading habits" which I discussed last week in the chat room (if anyone heard/remembers)!

Happy Thanksgiving!  You and our community are in my thoughts & prayers.  Be safe and enjoy the time with your loved ones:)

[Katia 2]

W - I was beginning to learn that there was a certain freedom in granting myself permission to be wrong and maybe there was no such thing as a failure, unless something positive and useful isn't learned from the experience……….
…… The less I cared about whether or not I was wrong, the clearer things became, making it much easier to move in and out of positions, cutting my losses short to make myself mentally available to take the next opportunity.

A – Mark is talking about feelings about “being wrong” and how it affects our trading.

A – “Being wrong” might be the most difficult thing learn to accept because most of our life (from childhood to current moment) we were taught by family/school/community to do our best, “be right” and try eliminate mistakes as much as possible. I’m still working on it.
 

[Miguel Angel 65]

Chapter 1 - Why I Wrote This Book

W - "At some point, I realized that because I has already lost everything, I really didn't have anything to fear, and, as a result, I inadvertently learned one of the most important lessons of becoming a successful trader: how to "accept" a loss without any negative consequences. No guilt, anger, shame, or self-punishment." -Mark Douglas.

A - I was touched by Mark's recounting of his personal journey coming to Chicago and losing everything in his life in order become a successful trader and author. His example and leadership give us all hope that if we are willing to accept loss without emotional damage, as a fact of trading in an uncertain market, we can in due time become successful traders ourselves. He didn't say it would be an easy process, on the contrary, it is psychological warfare that few people out of the many who attempt trading are willing to endure and survive.

A - I ended the month of November with my worst P&L since I started trading live. I struggled with position sizing, execution and learning to trade without a fixed mentality. But I feel empowered, not dejected. It was the price I paid to open myself up to the possibilities of what the market has to offer without fearing loss or the emotions associated with losing, or as Mark put it, "No guilt, anger, shame, or self-punishment". In a strange way I feel good about this month and the lessons learned compared to my previous losing months where I had engaged in negative self-talk and doubts about trading for a living.

Edited December 8, 2022 by Miguel Angel
To be consistent with the chapter titles.

[Dan F 73]

Chapter 1

 

W- If you have not now realized that in trading, there is a caveat that traders must deal with. This is that the more that you understand about trading the more you emotionally invested you can be with every tick a stock makes.

A- As Mark conveys in both books trading is one profession where being caring less can be a good thing

A- Caring too much is something that I am really trying to put to bed in my trading career. What I need to put more work into is not watching the screen like a hawk. The way that I am going to do that is to put in my stops and, 1. Get up from my desk, or 2. Work on something else immediately after setting my stop in and work for 5 minutes.

I guess it helps to post in the right forum 😬 thanks again @Miguel

[jjgillis 5]

Chapter 1

W - "I created my losses instead of avoiding them simply because I was trying to avoid them"

A - This really struck a cord with me, I think what he's getting at here is the need to just accept loss and move on.

A - I really took that big hit at the start of November because I was not disciplined with my risk management which ignited a flurry of revenge trading and if I had just held my stop, accepted the loss & moved on, I probably would have ended the day green instead of my worst red day ever. I just really like how he phrased it as this need to avoid losses is really what drove me to my biggest loss so definitely something that is going to stick with me as I get back to trading.

[Susan 111]

Chapter 2 - Why a New Thinking Methodology

W - Beyond the sheer mechanics of the activity - which just about anyone can master - lies a particular thinking methodology or strategy that leads to excellence.  Although few people have it, such a thinking methodology can nevertheless be learned.  One such skill (for example) may be the ability to identify those conditions that are conducive to making a common trading error before it actually happens.  Other techniques include: 

(Summarized):

1. Learning dynamics of goal achievement to stay focused on what you want rather than what you fear

2. Learning to recognize the skills needed to progress as a trader and remain focused on developing them (instead of $)

3. Learning to adapt to market changes

4. ID comfort level of risk and learning to expand it so you maintain an objective perspective

5. Learning to execute trades immediately when they set up

6. Learning to let market tell you how much is enough (not your mind based on P&L)

7. Structuring beliefs to control perception of market environment

8. Maintain a state of objectivity

9. Recognizing true intuitive info & ability to act on it consistently

A - Mark is telling us skills/techniques we need to acquire in trading

A - I love all his lists he always gives us.  I write them and put them on my wall so I can read them in the morning.  My big focus was on #1...I am slowly moving past that now to #4.  I am refining all of them and probably will be for a while, but that is ok:)

[Dan F 73]

Chapter 2 Why a new thinking Methodology

W- Not everybody thinks or deals with trading issues the same due to how unique our experiences are within our trading journey. Psychologic obstacles are an ongoing issue that everyone needs to revisit.

A- The obstacle that Mark lists which resonates with me is that you will need to learn how to release yourself from any feeling of inadequacy, guilt, or shame.

A- The psychological aspect is what I plan on addressing this week. I felt that the amount of time I spend on trading is endless compared to other things needed to be done in other parts of my life. I plan on fixing this issue by not trading after 10:30 and also to work on not babysitting my trades.

 

[DollarBill 21]

Chapter 2

W 

Learning how to recognize the skills you need to progress as a trader and then stay focused on the development of those skills, instead of the money, which is merely a by-product of your skills. (p. 45)  

A

New traders often focus on the results or money they can make without understanding the risk/danger of the environment they are acting in.  

A

Recently I added "Why I shouldn't take that trade."  I used to trade successfully market reversal from a sell off.  Now, when we have a down trending day, I only look for continuation of the sell off.  In fact, I like to short the failed "minor long."

 

Edited December 8, 2022 by DollarBill

[Norma 33]

Chapter 2 – Why a New Thinking Methodology

W: “Learning how to execute your trades immediately upon your perception of an opportunity”

A: Mark is telling us to take the trade every time our set up is triggered without overthinking.

A: I’m still working on my execution. More often than not I’m late in entering my trades.