For me, this is an excellent book, with a five star rating. I am reading it for the second time. Ever since Amazon introduced the Kindle, I have been buying ebooks, rather than the printed version. This review is for the ebook, although I assume there is no difference between the digital and the printed book.
The Kindle edition comes at US$ 12.15, a bargain for the contents of the book.
Ed Seykota, well known technical trader, in his foreward to the book says "Traders know the essential principles of trading: ride your winners; cut your losers; manage your risk; use stops; stick to your system and ingore the news. These principles work well in trading and in life in general- when you follow them consistently. Many people, however, find that following rules is not always a whole lot of fun"
The Author explains the book's objective - "The heart and soul of this book examines trading decisions from an emotional standpoint and helps you gain insight into your behavior."
The underlying message is to manage your risk - keep losses small. Exit a position if it goes against you. But, as traders we start thinking - suppose the position comes back then what do we do? The answer is simple - You can always get back in if you exit too soon.
Readers should think about this one.
As I trader, I have one clear principle which I follow - go with the market flow. Michael tells traders to 'Surrender and accept market movements' which is roughly equivalent to going with the market flow.
Traders are faced with whipsaws and losing trades almost every day. Accept these whipsaws, and, explore your feelings about frustration and despondency. "By allowing yourself to feel frustration, you eliminate the feeling of despondency for the rest of your life. That's a great trade.