Not a trading book, really.
A mindset book, based on trading examples.
Core ideas:
- Humans seek to avoid pain above all else.
- How well you can moderate that automatic response will determine a lot about how well you can do in life.
There’s not a lot more to it, although the specific mechanics are much more detailed in the book.
Interesting tidbits:
- 90% of traders are failing - they lose money. Avoid whatever it is they do. Tom argues that they follow normal human loss avoidance biases.
- Expect failure. Expect that some things will go wrong. You win on average, not on every at-bat opportunity.