- Hardcover: 97 pages
- Publisher: Warner Books (January 1, 1992)
- Language: English
- ISBN-10: 0446518107
- ISBN-13: 978-0446518109
- Product Dimensions: 8.6 x 5.8 x 0.7 inches
- Shipping Weight: 12.3 ounces
- Average Customer Review: 3.7 out of 5 stars See all reviews (23 customer reviews)
- Amazon Best Sellers Rank: #876,139 in Books (See Top 100 in Books)
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Zen in the Markets Hardcover – January 1, 1992
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Top Customer Reviews
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.
It is NOT for long-term stock investors, anyone reading it for those purposes will be disappointed and give it a negative review about how it downplays fundamentals, charts, technical patterns, and such. Short-term (like 1-2 minute in a trade) daytraders and pit traders are the ones who swear by this book, as I do. I traded on the floor of the exchange and still make my living in the quick in-and-out daytrading world, and for people like me this book is a must have.
1. Buy low, sell high.
2. Let profits run, cut losses quickly.
3. Add to a winner, not a loser.
4. Go with the trend.
This book shows how we break these rules out of the desire to be right. Our ego gets in the way. We should let the market dictate to us what to do based on its movement, not what we believe for what ever reason. If the market is on an up trend. Buy. Down trend. Sell.
The mistakes arise when we refuse to cut losses, waiting to prove we were right. Trade in the NOW, what is going on NOW, not on past trends or future predictions.
Read "Reminisces of a stock operator" to learn how a master traded this way, and "The power of NOW" to learn more about this spiritual path.
I wish you happy and profitable trading.(These rules have worked for me, 24% average return over the past 4 years).
any serious investor or trader. You can't be a winner. unless you master what he talks about.
Universally acclaimed as the best book ever written. Cuts
out all of the nonsense and gets to the heart of the matter, YOU!!
Most Recent Customer Reviews
Reads like a Kung Fu book. Hard for a type A personality to stay attentive.Published 11 months ago by HarveyG
Quick read, definitely in my top 5. Take the market for what it is, not what you want it to be.Published 17 months ago by G. Orlando
A nice little book but its message could be summed up in one sentence. Get rid of your ego and always let winners ride but cut losses short. There you have it!Published on September 6, 2012 by Chris McEwen
This book won't provide nitty-gritty tips, but will give the reader plenty to think about when it comes to their own trading. Definitely worth reading. Read morePublished on March 11, 2012 by Jack
A fast read, loaded with what you would expect from "Zen" in the title book
For me, How to become one with the market. Read more
This book is terrible! Everything the author said in the book could've have been gleaned from a self-help book about discipline in general and everything could've been summarized... Read morePublished on September 1, 2008 by Amazon Customer
I really enjoyed this book. What he says is sooo clear and simple - yet he admits that HE can't always comply with his own rules!! The gist of his book is this... Read morePublished on August 24, 2006 by D. Cummings
Pink elephant or
white heron? Value is in
your understanding .
The book will teach you haiku
but probably won't
improve your trading . Read more