The Daily Trading Coach

370 Pages·2009·3.66 MB·English

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The Daily
Trading Coach
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Founded in 1807, John Wiley & Sons is the oldest independent publish-
ingcompanyintheUnitedStates.WithofficesinNorthAmerica,Europe,
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the market’s ever changing temperament and have prospered—some by
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trader, professional or somewhere in-between, these books will provide
theadviceandstrategiesneededtoprospertodayandwellintothefuture.
Foralistofavailabletitles,visitourWebsiteatwww.WileyFinance.com.
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The Daily
Trading Coach
101 Lessons for Becoming Your
Own Trading Psychologist
BRETT N. STEENBARGER
JohnWiley&Sons,Inc.
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Copyright(cid:1)C 2009byBrettN.Steenbarger.Allrightsreserved.
PublishedbyJohnWiley&Sons,Inc.,Hoboken,NewJersey.
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LibraryofCongressCataloging-in-PublicationData:
Steenbarger,BrettN.
Thedailytradingcoach:101lessonsforbecomingyourowntradingpsychologist/
BrettN.Steenbarger.
p.cm.–(Wileytradingseries)
Includesindex.
ISBN978-0-470-39856-2(cloth)
1.Stocks–Psychologicalaspects. 2.Speculation–Psychologicalaspects.
3.Investments–Psychologicalaspects. 4.Self-helptechniques. 5.Personalcoaching.
I.Title. II.Title:Becomingyourowntradingpsychologist.
HG6041.S7572009
332.6(cid:2)4019–dc22
2008041524
PrintedintheUnitedStatesofAmerica.
10 9 8 7 6 5 4 3 2 1
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What?Agreatman?Ialwaysseemerely
theplay-actorofhisownideal.
—FriedrichNietzsche
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Contents
Preface xiii
Acknowledgments xvii
Introduction 1
CHAPTER 1 Change: The Process and
the Practice 3
Lesson1:DrawonEmotiontoBecomeaChangeAgent 4
Lesson2:PsychologicalVisibilityandYourRelationship
withYourTradingCoach 7
Lesson3:MakeFriendswithYourWeakness 9
Lesson4:ChangeYourEnvironment,ChangeYourself 11
Lesson5:TransformEmotionbyTrace-Formation 14
Lesson6:FindtheRightMirrors 17
Lesson7:ChangeOurFocus 20
Lesson8:CreateScriptsforLifeChange 23
Lesson9:HowtoBuildYourSelf-Confidence 25
Lesson10:FiveBestPracticesforEffectingand
SustainingChange 29
Resources 32
CHAPTER 2 Stress and Distress: Creative
Coping for Traders 33
Lesson11:UnderstandingStress 33
Lesson12:AntidotesforToxicTradingAssumptions 37
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viii CONTENTS
Lesson13:WhatCausestheDistressThatInterferes
withTradingDecisions? 40
Lesson14:KeepaPsychologicalJournal 43
Lesson15:Pressing:WhenYouTryTooHardto
MakeMoney 45
Lesson16:WhenYou’reReadytoHangItUp 48
Lesson17:WhattoDoWhenFearTakesOver 51
Lesson18:PerformanceAnxiety:TheMostCommon
TradingProblem 54
Lesson19:SquarePegsandRoundHoles 58
Lesson20:VolatilityofMarketsandVolatilityof
Mood 61
Resources 64
CHAPTER 3 Psychological Well-Being:
Enhancing Trading Experience 67
Lesson21:TheImportanceofFeelingGood 67
Lesson22:BuildYourHappiness 71
Lesson23:GetintotheZone 73
Lesson24:TradewithEnergy 77
Lesson25:IntentionandGreatness:ExercisetheBrain
throughPlay 79
Lesson26:CultivatetheQuietMind 83
Lesson27:BuildEmotionalResilience 86
Lesson28:IntegrityandDoingtheRightThing 89
Lesson29:MaximizeConfidenceandStaywith
YourTrades 91
Lesson30:Coping—TurnStressintoWell-Being 95
Resources 97
CHAPTER 4 Steps toward Self-Improvement:
The Coaching Process 99
Lesson31:Self-MonitorbyKeepingaTradingJournal 99
Lesson32:RecognizeYourPatterns 103
Lesson33:EstablishCostsandBenefitstoPatterns 106
Lesson34:SetEffectiveGoals 109