The
Disciplined Trader
Developing Winning Attitudes
Mark Douglas
NEW YORK INSTITUTE OF FINANCE
Library of Congress Cataloging-in-Publication Data
Douglas, Mark.
The disciplined trader: developing winning attitudes / by Mark Douglas.
p.
cm.
ISBN 0 13-215757-8
1. Stockbrokers—Attitudes. 2. Stock-exchange. I. Title.
HG4621.D68 1990
332.64—dc20
90-30237
CIP
This publication is designed to provide accurate and authoritative information in regard to the
subject matter covered. It is sold with the understanding that the publisher is not engaged in
rendering legal, accounting, or other professional service. If legal advice or other expert
assistance is required, the services of a competent professional person should be sought
From a Declaration of Principles Jointly Adopted
by a Committee of the American Bar Association
and a Committee of Publishers and Associations
© 1990 by Mark Douglas
All rights reserved No part of this book may
be reproduced in any form or by any means without
permission in writing from the publisher
Printed in the United States of America
10 9 8
New York Institute of Finance
A division of Simon & Schuster. Inc.
2 Broadway
New York. NY 10004-2207
2
To Paula Webb for her love, understanding and being
there throughout the process of writing this book.
3
Contents
Foreword
Preface
Acknowledgments
6
8
13
Part I Introduction
1
1 Why I Wrote This Book
2 Why a New Thinking Methodology?
Part II The Nature of the Trading Environment
from a Psychological Perspective
3 The Market Is Always Right
4 There Is Unlimited Potential for Profit
and Loss
5 Prices Are in Perpetual Motion with No
Defined Beginning or Ending
6 The Market Is an Unstructured Environment
7 In the Market Environment, Reasons
Are Irrelevant
8 The Three Stages to Becoming a Successful
Trader
Part III Building a Framework for
Understanding Ourselves
9 Understanding the Nature of the Mental
Environment
4
15...