21Book intelligenceMoney2009

The Daily Trading Coach

Source · Money
First published
2009
Edition
First edition (Wiley Trading), 2009
Format
hardcover
Publisher
Wiley
ISBN-13
9780470398562

AskNex reference artwork. The publisher's cover appears only under an approved rights record.

by Brett N. Steenbarger

A psychologist's programme for becoming your own trading coach: observe your patterns as data, journal states as well as results, and change one behaviour at a time.

Turns the vague advice to control your emotions into a practice with feedback.

AskNex explains and applies the ideas in this book in its own words. Nothing on this page is quoted from the book, and the page does not stand in for it: the argument, the evidence and the voice are the author's, and reading the original remains the deeper path.

In these topics
01Part

The core idea

You cannot coach what you do not observe. Record decisions and emotional states, not just outcomes; set goals for the process you control; and rehearse one change until it is routine.

02Part

The ideas

2 mental models, in the order they build on each other.

  1. 01

    Patterns as data

    Your worst trades share a state. Find the state, not the villain.

  2. 02

    Process goals

    Judge the week on rule-following and preparation, not profit.

03Part

What the book argues

AskNex's own paraphrases of the positions this book takes, as they are held in the knowledge graph. Not quotations, and not the whole book.

  1. 01

    Revenge trading is a frustration response; recognise the state and step away before it drives the next decision.

    CautionsEmotional regulation under pressure
    Steenbarger
  2. 02

    Record decisions and emotional states, not just results, so you can see which states produce your worst trades.

    ArguesSelf-coaching and review
    Steenbarger
  3. 03

    Coach yourself by observing your patterns as data, not as verdicts on your character.

    ArguesSelf-coaching and review
    Steenbarger
  4. 04

    Set goals for the process you control, not the profit you do not; results follow process over enough samples.

    ArguesTrading discipline
    Steenbarger
Ideas it contributes to5 ideas
  1. 01

    Self-coaching and review

    Treating your own decisions as data: record states and choices, find the pattern, change one thing.

  2. 02

    Emotional regulation under pressure

    Recognising the state that drives a bad decision before it drives the next one.

  3. 03

    Trading discipline

    Following a defined method through wins and losses without needing any single trade to be right.

  4. 04

    Habit formation

    Behaviour that persists because it is cued and repeated, not decided.

  5. 05

    Position sizing and drawdown

    Sizing each commitment so that no single loss can end the series.

04Part

What actually matters

  • Revenge trading is a frustration response; the fix is recognising the state and stepping away.
  • Wholesale reinvention fails. One rehearsed change at a time sticks.
05Part

Where it applies

Practical moves the book supports. Each one is a place to start, not a rule.

  1. 01State journal

    Before each trade, note your mood and energy in one word. Review weekly against results.

  2. 02One change

    Pick the single behaviour with the largest cost and practise only that for a month.

06Part

Questions worth asking

  1. 01

    Which emotional state precedes my worst decisions?

  2. 02

    What did I do well this week, regardless of P&L?

09Apply this to me

What are you trying to figure out right now?

AskNex will answer your situation using the ideas in The Daily Trading Coach alongside every other source that applies — including the ones that argue against it.