This is a top notch book on the psychology of trading. It directs the reader to the core of what it takes to maintain the right mindset as a trader. Traders share the same stressors that entrepreneurs have and must manage the mind first before the money can really flow. A trader must continue to trade when the future is unknowable, this is in sharp contrast to the employee who gets paid consistently for their time. 90% of trading may be purely psychological AFTER you have developed your own systematic process for trading price action and have the right money management processes in place.
Trading is not a perpetual money machine the profits and the income are irregular much like a salesman on commission. Entrepreneurs, salesman, and traders eat only what they kill and maintaining the self confidence and self esteem to go hunt every day is underestimated. This book’s title is true, the author cuts to the essence of trading psychology in one skill. That skill is mindfulness, creating enough space in your stream of consciousness that you can begin to step back and be the witness of your thoughts, emotions, and ego. This was the teaching of the Buddha, enlightenment through mindfulness of the ever present moment. Some of the biggest impediments to trading after laziness is overcome is fear, greed, and ego. The Buddha taught the path to overcoming these obstacles thousands of years ago through mindfulness.
By focusing the trader on the ever present moment they are freed from the stressors of the future and the disappointment of the past. Planned meditation is the fastest path to better mindfulness but you can practice mindfulness at all times. Self awareness can solve many psychological problems for a trader and this book shows you the path. I was very happy to get a refresher course on a path I have studied for 20 years along side my trading journey, the path to enlightenment. Book link -> The Essence of Trading Psychology
