Zen in the Markets

Rating:
Summary: A Complete Insight Into Zen in the Markets
Review: Here's a book that gets to the point quickly. I read this book in less than an hour. But in that amount of time, it really packed a punch and I suspect that many traders will find its key points to be of immense help from the next opening bell.

Author Edward Allen Toppel is a trader with a background in the S&P Futures Pit of the Chicago Mercantile Exchange. He's been at it for 20 years. So he isn't your typical vendor just in it to sell you books, courses, and seminars.

His book is based on his experiences both as a winning and losing trader. His thesis is simply this:

To succeed as trader, you have to trade with the flow with the market.

As incredibly simplistic and mystical this sounds, Toppel gives powerful suggestions on how to accomplish this.

Here are three of my favorites:

1) A loss is a loss, whether or not it's unrealized. Many traders mistakenly think that if a position goes against them, they haven't lost any money until they sell the stock.

2) Buy high, sell higher. The odds of success are much better if you buy stocks that are trending higher, than if you try to bottom fish and buy a stock because it's cheap.

3) Keep your positions small enough that you ego does not get in the way of good judgment.

On that last point about keeping position sizes small, I want to expand a bit.

To me, that was the single most profound statement in the book. I've heard it hundreds of times before, but Toppel's discussion of position size was riveting and had me thinking deeply about my own performance as a trader. His thesis is this:

We all have some threshold of position size which, when exceeded, transforms us into complete morons.

Keep your position size below this threshold, and you'll likely make money over the long haul if you're any kind of decent trader. But exceed the threshold, and your ego will inevitably cloud your judgment when something unexpected happens on a trade.

Think about it.

Rating:
Summary: You got to fully understand zen so as to appreciate this
Review: I wonder why there are so many readers who regard this as their favourite trading book. This is a good book. Concise, intelligent, and to the point:- no matter what skill/knowledge you have, all you need to do for long term success is to beat your ego, or in zen terms, forget and get rid of your own "self".

I believe Mr. Toppel really knows zen. He quoted excellent zen sayings in his book. However, I really doubt how many westerners can understand the true meaning of "When I eat, I eat. When I walk, I walk. When I sleep, I sleep." As subtly expressed in the suggested reading, this book needs to be read together with other zen readings for maxi impact.

Finally, to justify my rating of this book, I would like to raise the following complaint: Mr. Toppel quoted six rules for all successful investors and traders. 1. Never add to a loser. 2. Add to a winner only. 3. Let profits run. 4. Cut losses fast. 5. Dont pick tops. 6. Dont pick bottoms. And most important of all: 7. Let the market make the decisions, not your ego. However, one can find in no where Mr. Toppel had taught his readers how to spot the non-tops and non-bottoms.

p.s. I like the I.Q. test included very much.

Rating:
Summary: You got to full understand zen before you can appreciate it
Review: I wonder why there are so many readers who regard this as their favourite trading book. This is a good book. Concise, intelligent, and to the point:- no matter what skills/knowledge you have, all you need to do for long term success is to beat your ego, or in zen terms, forget and get rid of your own "self".

I believe Mr. Toppel really knows zen. He quoted excellent zen sayings in his book. However, I really doubt how many westerners can understand the true meaning of "When I eat, I eat. When I walk, I walk. When I sleep, I sleep." As subtly expressed in the suggested reading, this book needs to be read together with other zen readings for maxi impact.

Finally, to justify my rating of this book, I would like to raise the following complaint: Mr. Toppel quoted six rules for all successful investors and traders. 1. Never add to a loser. 2. Add to a winner only. 3. Let profits run. 4. Cut losses fast. 5. Dont pick tops. 6. Dont pick bottoms. And most important of all: 7. Let the market make the decisions, not your ego. However, one can find in no where Mr. Toppel had taught his readers how to spot the tops and bottoms.

p.s. I like the I.Q. test included very much.

Rating:
Summary: Simply the Best Trading Book Ever!
Review: I've been a professional trader for 20+ years and this is simply the best book written on the art of trading. Trading is about all about overcoming the inner self which is driven to failure. This book, more than any other I've ever read, cuts to the heart of the matter and gives the reader real, tangible, and specific advice on how to approach the markets, him/herself, and how to deal with the daily pressures of trading. Those pressures are not only external, i.e. the markets, but also internal, i.e the mind. I've read all the other "Zen" books, I've read all the other books on the proper psychological mindset, and this one beats all the others hands down. If you buy no other trading book but this one, then you are already way ahead of the game. This is the single most valuable book in my trading library. I highly recommend its purchase.

Rating:
Summary: My Favorite Trading Book
Review: Most trading books are full of theories, padded with nonsense about volatility curves and greek letters. This book cuts to the heart of the issue: the main obstacle to making money in the markets-your EGO.

I have read them all and none says it better than this one. Can't praise it enough for it's simplicity and elegance.

Rating:
Summary: Bravo!
Review: Straight to the point unlike the crooks aou there. You see in this little book the author shows what correct frame of mind you need to have in the markets, unlike others that sell "courses" for USD[money]...Not all that shines is gold!

Rating:
Summary: My most useless read of the centruy
Review: This book isn't really worth 1 star but that's the lowest rating allowed....I found this book a total waste of time. I read it carefully as I was sure I was missing something. Lots of platitudes, but no real substance. Perhaps you have to be a Zen follower to get something from it. How else could all these other reviewers think it was so great? There are many better books written about the psychology of trading. I see it's out of print. Wonder why?

Rating:
Summary: DO NOT BE DECEIVED INTO BUYING THIS BOOK!
Review: This is a great trading book. It's simple but powerful. I don't agree with all of it but it's core message is brilliant. Basically successful trading comes down to following simple rules. Simple rules which are incredibly difficult to follow since they run counter to what our ego or emotions want.

Understand the rules and recognize the powerful psychological forces you have to fight and overcome and you are on your way to being a successful trader or investor.

Easier said then done but this book will set you on the way.