Trading in the zone pt1

Trading in the zone by Mark Douglas has been such a wonderful book that I'm going through it the second time. The principals I learn from the book has profound effects in my life and as I revise through them, I'll blog about it here for you.

However these principals are not listed in the order of the book.

Trading down to its simplest form is pattern recognation. Setups/Systems are simply that - patterns. These patterns form because of mass psychology - repeatable, repetitive and predictable - patterns. To consistently capitalize on these patterns, the trading skills we need are:

• trust and confidence with our edge/setups/systems
• thinking in probabilities

Whatever our system is, we need to have trust and confidence about it. We trust that the system will in all probability create a profit for us in the long run.

These skills are psychological.

Therefore to solve the puzzle to become a consistently successful trader we have to tackle the problem - our pschology. And at the root of that is our core believes. (I will write more about the believes which the book has outline.) And when it comes to personal transformation, the most important ingredients are our willingness ot change, the clarity of your intent and the strength of our desire.

The final destination is to become consistently successfuly. Now to become consistent is to make 'consistent' become part of who we are. The good book says, "Be holy as He is holy...." it doesn't say "do holy..." Similiarly, we have to "Be consistent" and not "do consitently..". And how do we get about there? The way to get there is to change our believe.

Our believe is our mind's underlying programming. Whatever we do, it reflects on our belief. In fact, it is difficult to act AGAINST our belief.

This book deals with some of the common wrong believes trader have which hinders us from being consistent. I will be written more about them in the weeks to come.