Enhancing Trader Performance By: Brett Steenbarger
So you trade, but you don’t trade as well as you can? Well then you The idea of the book is that you can replace a little of the randomness you encounter in trading with your understanding of trading, in effect reducing risk through eliminating unproductive methods. It should be noted that this book is defiantly not for everyone. If you don’t have any understanding of trading there are far better places to start. This book is for the individual who has a trading strategy and wants to improve on it probably want to check out Steenbarger’s Enhancing Trader Performance.Steenbarger points out that you should not just measure performance in aggregate if you are looking to improve performance but by mechanics, strategy and tactics. He points out very astutely that each has a significant effect on performance and are best understood He goes on to explain that a good way to improve on these three characteristics in through learning loops, which can be used to incrementally improve performance.
There is an old saying that came out of the annals of Ford Motor Company financial management that “If you can measure it, you can manage it.”
Steenbarger goes a step further than most while discussing trading psychology. He moves beyond the general discussions of loss aversion and discusses how one can coach ones self using cognitive and behavior techniques to alter problem patters and build new ways of behaving in a more constructive manner.
As an added bonus. Steenbarger spends some time on the very valid point that your trading This point is lead some credence by it be shared by none other than the Oracle of Omaha himself.
Overall this book does what it sets out to do, it provides a great framework to iteratively improve the trading strategy of a novice to intermediate trader, and does it in a very digestible way.
Overall this book does what it sets out to do, it provides a great framework to iteratively improve the trading strategy of a novice to intermediate trader, and does it in a very digestible way.