Not directly related to trading, but the mental aspect applies to trading completely. "Choke: What the Secrets of the Brain Reveal about Getting it Right When You Have To" Sian Beilock author. She goes on a tangent or two, but reinforces points that no one wants to accept for the most part until they have failed. It doesn't necessarilly cover anything new to an exprienced trader, but lends some studies to prove points. More to it than this summation, but it reinforces, PRACTICE, PRACTICE, PRACTICE!!!! Being a genius never hurts, but even they need to learn, and practice. Was going to post it in great books thread, but can't remember exact title of the thread, or if it was Surfer, or Nitro that started it. Could be added to that thread also, in my opinion.
I really don't know what to say to you, surf, except we are practically living on different planets. The logic of your first paragraph, re, 30% hit ratio is dead wrong out of the starting gate, and you appear not to have the slightest inkling as to why -- like an armchair theorist who is wholly unaware of the nuances and subtleties of real world interaction. You speak of discretionary trading like a sex therapist who has never had sex. Your point in the Ken Grant paragraph, re, trying to connect with "randomness" is insanely out to lunch too, again for reasons you seem to miss completely. Random entries have nothing to do with setting up and executing on huge R trades, which require repeated attempts at logically identified inflection points to dial in just right (a hell of a long way from throwing a dart). In other words, and holy mother of god I cannot believe I am having to explain this to someone who claims to be a knowledgeable trader, the gap between "random entries" and combining fundamentals, technicals and sentiment to establish a tightly controlled position in large size that is subsequently ridden to outlier gains is GRAND CANYON SIZED. This seems as plain as the day is long. It's why Paul Tudor Jones gave up hundreds of basis points in probes before nailing the '87 crash. It's why Jesse Livermore talks repeatedly about putting out tester bets in the market before establishing his full line. It's why Druckenmiller says he never uses valuation to time a market (but instead applies other methods of testing when he feels the time may possibly be right). It is why countless top global macro traders talk about developing a fundamental view, then expressing trades around potential catalysts and technical inflection ponts that confirm that view, because there is no bell that rings to say 'this is the precise moment when the broad market agrees with you now.' It is, pardon my french, Fucking Obvious, with a capital "F" and a capital "O" (and bold to boot). In short, for anyone who understands the nature of discretionary trading (especially macro trading) on the most basic level, as I have long described it and others long before me have described it, the "non-randomness" of the exercise is so damn bloody transparent as to make your professed ignorance mind-boggling. But then, surf old buddy old pal, you always did have a knack for astonishing me (in your own unique way)...
For anyone who wants to be inspired to the value of practice, "Zen in the Art of Archery" by Eugen Herrigel is a wonderful little book. Excerpt: Far from wishing to waken the artist in the pupil prematurely, the teacher considers it his first task to make him a skilled artisan with sovereign control of his craft. The pupil follows out this intention with untiring industry. As though he had no higher aspirations he bows under his burden with a kind of obtuse devotion, only to discover in the course of years that forms which he perfectly masters no longer oppress but liberate. He grows daily more capable of following any inspiration without technical effort, and also of letting inspiration come to him through meticulous observation. The hand that guides the brush has already caught and executed what floated before the mind at the same moment the mind began to form it, and in the end the pupil no longer knows which of the two ââ¬â mind or hand ââ¬â was responsible for the work.
Speaking of practice, check out Outliers by Malcolm Gladwell if you haven't already. The concepts of "deliberate practice" and "10,000 hour rule" are easily applicable to any facet of life where there exists room for improvement.
IMO, the "Wizards" series of books are at the very least counterproductive, and for many have ultimately been destructive. The author emphasizes the "one big trade" for each of his biographical subjects, and to that end the illusion is promoted that successful trading requires counter-trend market timing. The primary feature that Schwager highlights for each trader profiled is that big move where the subject trader prevailed over the rest of the financial world. And as we all know or should know, timing a market top or market bottom and selling into strength or buying into weakness is absolute shit risk / reward over time. Just look into the subsequent careers for most of the traders that Schwaeger profiles.
That seems a broadly unfair generalization. Every book in the series contained a highly diverse cross section of styles: Trend followers, swing traders, day traders, floor traders, relative value, mechanical, pure charting, pure fundamentals, long / short. To say the author emphasizes "one big trade" for each subject is simply a falsehood, since many of Schwager's subjects didn't HAVE one big trade to talk about by virtue of their methodologies. Plus I don't recall too many guys in there extolling tops or bottoms as a way to make a living. Many, many in contrast said the opposite. And as for one of the ones that did, PTJ, he has gone 25+ years without a losing year in his own trading. And many of the names Schwager profiled have either retired in style or are still at the top of their game today (ex. Druckenmiller, Trout, Kovner, Cohen, Jones).
In order to become a better trader, read strategy books not books on trading strategy. This is only for traders with some years of decent experience and understanding of their own strategy however NOT for newbies. Think Art of War and Book of 5 Rings. For newbies, read Oliver Velez's book -- I forgot the name of the book but it helped me out significantly when I first started trading.
Trading books that are a narrative like Market Wizards serve the purpose as a good inspirational read. They were great tales of how (guys & gal LBR excuse me) knocked the cover off the ball. But when you get down to it, will they help bring your trading to the next level? Or help you to fix what's in your way to make you profitable if you're currently not? No. Books don't do things like that, only people do. Motivating & an enjoyable read & that's where it begins & ends. Is what it is.