Trading in the Zone: Master the Market with Confidence, Discipline and a Winning Attitude
by Mark Douglas

Mar 2001

Critical insights

When I first saw this book I thought it would be a rehash of Douglas' first book (The Disciplined Trader).

I was pleasantly surprised to find, though, that he has come across some excellent insights that can really make a productive difference in how one interacts with markets. A lot of Douglas' theory I find silly (his pseudo-philosophy on how thoughts are energy etcetera), but the stuff he gets right makes up for that many times over.

One of the keys to successful trading is recognizing that the market is not necessarily a combatant. It does not have to be a bloodstained arena, a boxing ring, a firefight, or even a physical thing. Ttrading in the Zone helped me to realize this, and further to realize that viewing the markets as a battle or a conflict or a place of adversity was not necessarily optimal for my personal psychology.

Douglas also points out a pitfall of many traders—the need not just to make money, but to be right. After expanding on this seed of thought, I have come to the conclusion that many traders who think they are in the markets to make money are actually in it for something else. He is correct in pointing out how the standard-issue coping methods for everyday life can have disastrous result in markets.

This book also helped me confirm something I have always suspected. In a key sense, trading should be easy. This is to say, the journey is hard and grueling, but once you get there, the sense of conflict and adversity should dissipate. Lance Armstrong worked his fingers to the bone, but when he was leading the pack in the Tour De France I imagine he was experiencing a sense of joy and focus, not conflict or persecution or fear. Michael Jordan or Tiger Woods likely sweat and groan and grind themselves down in practice, but in actual application their performance is conducted in an easy, flowing, almost dreamlike state.

If you want to reach that state of inner calm, Trading in the Zone may help you achieve it. If you think this is a silly ideal and want to keep fighting and sweating and screaming at your screen, great—don't be surprised to find some calmer soul taking your money at some point.