序言
Foreword 序言
My unique position in the financial community has allowed me the rare
opportunity to talk to and question thousands of traders, brokers, and trading
advisors since 1979. I am not a broker or a letter writer. I am the chief executive
officer of CompuTrac, a company that supplies technical analysis to stock and
futures traders. I perceive my position as being neutral, one that allows people
to open up and talk to me freely. I started trading for my own account in 1960
and very quickly became aware of the underlying psychological blocks to good
trading and money management. This realization has been confirmed by all who
have counseled with me.
As a result, I sincerely feel that success in trading is 80 percent psychological
and 20 percent one's methodology, be it fundamental or technical. For example,
you can have a mediocre knowledge of fundamental and technical information,
and if you are in psychological control, you can make money. Conversely, you
may have a great system, one that you have tested and has performed well for a
long period of time, yet if the psychological control is not there, you will be the
loser.
A good trader knows from experience that over a period of time he may
engage in more losing trades than winning ones. But money management,
and a careful assay of the risks protected by realistic stops, will keep the
trader out of trouble and ensure that on the "big" moves, he will profit.
Money management is composed of two essential elements: psychological
management and risk management. Risk management stems from the
psychological factors being truly understood by the trader and "in place"
before risk is even considered.
I would especially caution new traders and market participants that
reading and passively analyzing your motivations are certainly a necessity,
but the acid test comes with active trading under pressure. Start slowly.
Question every trade. What motivated it? How was the trade managed? Was
it successful? Why? Did you lose? Why? Write down your assessment and
refer to your comments before making your next trade.
At all major CompuTrac seminars I try to have a workshop leader address
the attendees on the psychological aspects of trading. The grim reaper who
kills off "your equity" and disappears with your profits is not the
mysterious and ubiquitous "they" but a simple misguided "you." Medea
said just before she murdered her children, "I know what evil I'm about to
do, but my irrational self is stronger than my resolution." If this sentiment
reflects your mind set when you trade, then The Disciplined Trader is
definitely the type of book you should be reading.
What a pleasure to read this book. My own education cost me a lot "the
hard way." I can read myself into the pages - that's me, that's me! Mark
has carefully fashioned his book into a comprehensive logical dialogue. It
reads as if you are at his side and he is explaining it as a friend, which I
know you will enjoy. You are fortunate because you are taking the time
now, before you have made a serious mistake, I hope, to learn about
yourself and to study your craft. The traders who take the time to reflect and
practice will survive and possibly prosper.
TIMOTHY SLATER
President
CompuTrac Software, Inc.