The Investor's Quotient: The Psychology of Successful Investing in Commodities and Stocks, 2nd Edition

Rating:
Summary: This is a MUST READ for all serious investor/trader
Review: if you are allowed to buy only one book that deals with the psychology of trading. this will be it. what is excellent about this book is it gives you an idea on how to improve yourself using psychology.

in the first few chapters of this book, mr bernstein links the science of psychology to the 'science' of investing. exploring the various branch of psychology, then comparing psychology to our trading behaviour to show how it is linked.

after that, mr bernstein goes on to tell you the many ways in which we can use what is learned in the science of psychology to improve, correct and/or enchance our trading. 200 odd pages of relevant materials and wise words on how you can go about doing it.

the author is a very good and methodical teacher. bringing out each aspect of our trading, showing us how we can look for weaknesses and improve. ie he talks about our personal beliefs, how our childhood can affect our trading style, our relationship with broker/spouse/family, our methods, or even certain specific probelms like not able to cut losses etc. analysing each aspect, allowing us to understand how it can affect our trading, and then show us how we can correct/improve. he even teaches the reader how best to read books!

after reading this book, you should learn much about yourself and the kind of trader you are. you will also learn the best way to help yourself, to improve on any weaknesses.

if there is a degree on trading, this is the definitely one of the main texts. i will also confess that my trading has improved tremendously since reading this book, from annual loser to annual winner.

this book is highly recommended. it will also stand the test of time, i strongly believe it will still be as relevant 300 years from now!

Rating:
Summary: All battles are won or lost between your two ears
Review: This a great book that delves into the psyche of every trader and makes them figure out their underlying reasons for why they trade.

Mr.Bernstein makes a trader put himself under a microscope and forces him to interact with markets in a way that fits his personality.

Mr.Bernstein also shows traders how to change their personalities to match the markets they are trading, whether it's stocks or Commodities.

Rating:
Summary: Indeed an excellent book!
Review: Wow--I am truly impressed with the quality and content of this book! Fortunately, the short profile quiz in the book identified me as a trader who already has strong self-discipline and a good working understanding of trading psychology and as someone who might not need to read further chapters, but I was still able to pick up pointers and solutions to the remaining problems that plague me (getting out of a position too soon, or getting out too late--both problems falling in a class called "non-specific fear or greed"). Friends of mine who have weaker self-discipline clearly exhibit many of the psychological problems that Bernstein describes as common amongst traders, especially a strong aversion to using stops for money management/loss control. I find many of his repair techniques to be similar to those used in neuro-linguistic programming (NLP) to treat other behavioral/psychological problems, and I appreciate his respect for many different trading styles and systems; unlike many other writers, who say that their system is the ONLY system or ONLY way to consistently profit, Bernstein stresses that ANY trading system/methodology or lack thereof will work so long as the trader has the psychology and discipline to execute it. Bernstein of course advances his own trading rules, some of which I don't agree with but which are not wrong--just not my style. Whatever *your* trading style, I'm sure you'll benefit from learning how to better implement it, so read this book! Needless to say, this is one of the few books that I've decided shall have a permanent place on my trading library shelf. It is at once detailed and scientific in content, yet easy to read and understand and will be re-read in times of trading weakness.