Trading in the zone

What Hacker News says

1. module0000Dec 2018
   I used to follow a lot, and drank a bunch of the kool-aid from Jigsaw Trading. Now I read very little, other than the economic calendar for US/Canada/Europe each morning. I'm looking for high volatility events(such as FOMC, GDP, etc) so I can make sure I am not in the market when they take place.

   I haven't read any books about algorithmic trading(but I've read a ton about trading in general...favorite is Mark Douglas's 'Trading in the Zone'). Most of my introduction to algorithmic trading came from a trading platform(Multicharts.NET). I wasn't a .NET programmer specifically, but they include the source code for all indicators/signals that ship with the product. This made it really easy to tinker with automated trading signals, and I don't think I would have ever attempted it without that exposure.

   Also, you didn't ask for this piece of advice...but: be very cautious of tips from any blog or news outlet. The people producing those are under tremendous pressure to produce "something", even when there isn't any insight to be had for a day/week/event/etc. They will produce something anyway, relevance be damned. If you needed some help/ideas, you would be better served joining a live trading group. Many of these are free, and they give you a chance to listen(and speak) to other traders, all trading at the same time, usually with the same instruments. I learned some things from GPI Trading Group(http://www.gpitradinggroup.com/) that saved me a lot of time and headache. They are focused on the ZB(bond futures, not equities), but back at that time so was I. I got a lot of feedback from their members about my indicators and automated signals I was working on, and much of it was invaluable.

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2. pellerJun 2017
   From a trader's perspective, losses are the cost of doing business. When you're starting out, your losses are your tuition. An engineer spends at least $100K+ and 4+ years going school to learn their craft; why should it be any different for traders? (Aside from the fact that there's no school and no curriculum; there's only the library, the market, and your wits.) If you read the Market Wizards series, you'll find a lot of pros saying things that amount to "on average out of 10 trades 6 or 7 of them will be losers - but I keep my losses small and let my winners run."

   Here's how it works for a casino: the outcome of any given roll of the dice (say) is random. But over a thousand rolls of the dice, the odds of the game are not random. For a casino, obviously the games are set up so the odds favor the house, and "in the end the house always wins." For a trader, your "odds" against the market are determined by your skill. Every individual trade is still essentially random, but if you're good at what you do - if your market analysis, entry timing, risk/money management, and adherence to your trading rules is solid - over a large enough sample size the outcome will be net positive. It's a strange duality for some people to grasp.

   A good first read: High Probability Trading (Marcel Link)

   The Bible: Reminiscences of a Stock Operator (Edwin Lefevre)

   The basics: Technical Analysis of the Financial Markets (John Murphy), Japanese Candlestick Analysis (Steve Nixon - skip the first chapter), Trading and Exchanges (Larry Harris)

   Good follow ups: All the Market Wizards books (Jack Schwager)

   Psychology: Trading in the Zone (Mark Douglas), The Nature of Risk (Justin Mamis)

   Less theory, more practical: Mastering the Trade (John Carter)

   Putting it all together: How to Buy (out of print) and When to Sell (both Justin and Robert Mamis; slightly outdated but 100% worth reading.)

   Some of these books are "expensive." But even if you only learn one thing from a book, it'll have paid for itself 10 times over. Take copious notes. Find the commonalities. Filter out the bullshit. Watch the markets; see what "clicks" for you. The trading exercise towards the end of Trading in the Zone is a great way to test yourself without risking a whole lot. (On that note, a theme you'll find, if loosing 2 or 3 thousand is going to be an issue for your current well being, perhaps better to wait to put money up until such a cost is somewhat closer to pocket change...)

   If that all sounds like too much effort, then perhaps the more typical buy index funds and hold until you retire answer you'll often get around here is more your speed. No shame in it.

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3. pellerApr 2016
   I want to ask, what is it that you consider the "investing perspective?" Unless you _never_ plan on closing out your position, then at _some_ point, you will have to sell (or cover, as the case may be). My point is, even if buy-and-hold investing suits your personality more than any other style, technically, you are still a trader. Or more specifically, if you want to learn to reliably make money more often than not, you are going to need to learn to think like a trader, even if you prefer to fancy yourself an investor.

   Things to note: This is going to be hard work. It will take time (years for most). Take notes on everything you think and do (keep a trading journal).

   You will loose money at first (consider it your "tuition").

   Don't put too much weight on the publication date of a resource. Certainly, some specifics of market implementation have changed over the years, but as a whole, human nature (fear and greed) is the same now as it was when the first humans decided to build financial markets.

   I know you didn't mention books as a preferred learning source, but, IMO they contain the most condensed stores of knowledge by the most reputable people (read: retired and/or independent) on this subject. Here's my list of recommendations:

   High Probability Trading by Marcel Link

   How Technical Analysis Works by Bruce Kamich

   How to Buy by Justin and Robert Mamis (out of print; worth every penny)

   When to Sell by Justin and Robert Mamis

   Trading in the Zone by Mark Douglas (don't underestimate the importance of getting your psyche under control!)

   Japanese Candlestick Charting Techniques by Steve Nison Market Wizards by Jack Schwager (these are well worth reading)

   And of course, the timeless classic, Reminiscences of a Stock Operator by Edwin Lefevre

   Good luck!

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4. alexkaluzMar 2025
   I’ve been trying daily trading in crypto and have read several books on trading, including Trading in the Zone and on Technical Analysis.

   If there are successful daily stock or crypto traders here, what other good books or resources would you recommend for becoming a better trader? What things have helped you improve the most?

   Moreover, if you use software development to make better-informed trading decisions, what have you found to be the most helpful? (excluding the bots)

   Thanks in advance for sharing your experiences and advice!

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5. breckinlogginsMay 2021
   I think we read the same book. Probably "Trading in the Zone" or one of those. I never ended up day trading much, but I sure as hell got that message loud and clear.
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