There were several times when I would have loved to be at the trading desk when some of those things were going down! Final Thoughts on The Playbook More than anything else, this will give you an inside look at how some of the elite traders in the world got to where they are. Of course there are also many examples of how traders didn't follow the rules and paid the price. It goes through numerous, specific situations where a trader did the right thing and benefited. The most important reason to read The Playbook however, is because it shows you trading principles in action. That is great, and there is a place for that for sure, but I believe that processes are much, much more valuable than systems. Most other authors are more interested in teaching their favorite method. Again, if another author does mention this principle in their book, it is only in passing. This is another concept that I have not read about much in other trading books.
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The other thing that is talked about a lot is how to setup a PlayBook. This is because it is hard to really understand how important it is, without learning it first hand, or hearing specific stories. Sure, other authors talk about journaling trades.īut it is like water off a duck's back to most traders. I feel that this is where most trading books fall short. Reason #2: It Is About ProcessesĪgain, I must emphasize again the importance of focusing on the psychology and setting up a feedback loop in your trading. I feel that this is way more valuable than just learning entries and exits. There are a few charts in the book, but they are there only to illustrate a point, rather than to teach a complete trading method. It concentrates more on the psychology of trading and daily processes that are required for success. With entries and exits out of the way, it makes it much easier to concentrate on the principles that the author is trying to communicate.
It was really refreshing to read a book without a trading system. One of the best trading books that I have ever read does not have a single trading setup in it. Here are the top three reasons that I recommend this book… Reason #1: It Is Not About Trading Setups
Like he says in the book, trading is trading and the master trader can trade anything. They primarily trade stocks and options, but don't hold that against them. If you have never heard of Mike before, he is one of the partners in SMB Capital and runs the outstanding SMBU trading blog.
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One such book is The PlayBook: An Inside Look at How to Think Like a Professional Trader by Mike Bellafiore. But once in awhile, there are trading books that come along that are worth talking about. I prefer to read biographies of successful people and books related to psychology, health, travel and personal development. This fre.RELATED: Positive affirmation tracks to reprogram your subconscious To be even clearer, we seek stocks that have fresh news. #4 Intraday Fundamentals is the practice of trading a Stock In Play. You must know the Big Picture and be prepared for how it may move your trading positions. #3 The Big Picture is the strength or weakness of the overall market and what catalysts are moving it.
It is most important for your trading career to understand what to consider when deciding to make a trade as opposed to whether your trading decision was correct. Every decision involves considering the impact of each of these five checks. #2 The five checks for making trading decisions are the Big Picture, intraday fundamentals, technical analysis, reading the tape, and intuition. Do what you do best and stop trying to make tacos. As traders, we often jump from strategy to strategy that may not be our strength to our PL detriment. The key to your optimal trading is to stick to what you trade best. #1 The PlayBook will help you understand, archive, and implement what you trade best. Please note: This is a companion version & not the original book.