3 Book Recommendations for Stock Market Trader, A look Back, Nuts and Bolts and Phycology of Trading

Video Closed Captioning:

good morning good afternoon good evening

folks michael zuber one rental at a time

back with his newest expert mr dan bird

who is teaching me a new language

that of using technical training

tying my macro economic view with

technical analysis and i am having a

blast dan how are you

i’m great i’m freezing though yeah oh my

god is it 50 again i want it’s 35 today

are you still in florida florida 35.

that’s that’s 35 degrees so i want

everybody on your channel out there to

pray for florida

because the iguanas are dropping from

the trees i i’ve heard of that before

right they just get so cold they fall

yeah that’s right that’s crazy well hey

last week dan you brought us three books

which got great reviews people were

saying i want more of this

so uh i think you guys three more yeah

actually several people responded so uh

what what are some three books

that we want to look at this week

all right let me share

let me share my screen

like i mentioned last week

the first one is sort of a fun read

second one will be

you know trading

learning about trading and the third one

will be

psychology

all right so this one this one is uh

this this should be a must read for

every

uh aspiring trader okay call

reminiscences of a stock operator

got it

it uh is widely believed to be the

um story

of um

jesse livermore

okay one of the greatest traders ever

um

he he basically went short just before

the 1929 market crash

oh that he did well with that

made millions millions of dollars wow

but it’s this is sort of a it’s kind of

a fictionalized version of his life okay

so it doesn’t

actually come out and say this is a

biography necessarily but this guy that

wrote it edwin

lefevre

is a was a very good friend of jesse

livermore and everyone basically you

know believes that it’s little moore’s

story okay

very so it’s a good it’s a really

interesting read very very fun read

he made and lost millions fortunes in

his career multiple times it sounds like

multiple times yep those are always a

good stories okay second one is

mastering the trade this is all about

you know private techniques for

profiting from intraday and swing

trading setups

ah swing trading yes okay yeah this is

uh

written by a guy named john carter he’s

a traitor

um

he tells his story and he talks about

what i’ve talked about where he lost all

his money and then he stopped losing his

money and then started making money

now would you say swing trading intraday

trading is really just that it’s it’s in

and out of markets in potentially

seconds or minutes

intraday is yeah that’s day trading okay

that is in and out and a lot of times

it’s with futures okay swing tr swing

trading though is longer time frame oh

it is okay i didn’t know a swing trading

can be

a week to a month to six months what

makes it a swing

it’s trading the the trends so it

depends on how long the trends last and

it depends on the time frames that

you’re trading

okay so you you can look at uh you know

if you’re day trading then you want to

look at minute charts

got it every minute what does the chart

look like

if you’re swing trading and you’re

trading for a week or a month and you

want to look at daily charts if you’re

if you’re trading for

trends that last six months then you may

want to look at weekly charts

so it just depends on you know what the

charts are and what you want to look at

very cool um but his his is a very

interesting story as well uh he talks

about how he lo basically lost all of

his money the week before his wedding

he had to borrow money to pay for the

wedding ouch oops not good don’t do that

guys

yeah

tough to tell his wife now yeah

all right so that’s that’s a very

interesting book as well some of

actually some of the techniques that i

use in my charts

come from the things that he

talks about very cool and then the last

one is trading in the zone ah again this

is this is the psychology of trading

right

it’s written by mark douglas who’s the

same guy that the book that i

recommended last week he’s really more

of a psychologist

but he applies uh psychology to you know

discipline and winning attitude and all

the things that you need really not even

just for trading really for life for

investing in general and anything that

you’re doing

you need to have this kind of mental

attitude so when he talks about the zone

that’s not a technical chart that is

more of a balanced

mental state mental it’s a mental state

yeah yeah mental state that’s what makes

sense yeah yeah that’s uh again you and

i know each other for a long time that’s

that’s where i feel like i have gone

wrong in all of my training is i lit my

mind or emotions and i rat hold and

it it i it just got away from me and

hints i didn’t touch stocks for 20 years

so what you’ve helped me just in the

last couple of weeks

is hey we’ve lost money on every trade

let’s be very very clear so don’t follow

us this is not financial advice but the

fact that we’ve been right-sizing

positions we’ve been using stops we’ve

been laddering in these are all things

that i would have never even thought

about doing so this this has been a fun

experience so again the three book

titles are trading in the zone what’s

number two it’s uh number one is

reminiscences of a stock operator okay

the fun read number two is mastering the

trade

okay talks a lot about uh

you know some of the techniques of

trading the technicals

and then the

psychology is trading in the zone and

just to comment on this real quick um

i have a friend that i communicate with

quite a bit and

last week we were talking about tesla

and he has a neighbor who bought a lot

of tesla

he’s got

over a thousand shares of tesla

and he’s and he’s made millions okay and

he said his his friend called him very

worried saying yeah i made millions but

i just lost millions

in the last month because i and he was

very concerned and um my friend told him

he said he looked at the charts and he

goes well it looks to me like

800 to support it hasn’t been below that

we can show that today

hasn’t been below that so 800 looks like

where support is

and sure enough the next day it bounced

off of 800.

and started going up i and i and i said

to him i said you’re gonna you’re gonna

look like a genius he’s gonna think

you’re a genius

and the guy goes yeah now if i could

only do that with my own trades

and i said well that’s that’s the

problem once you have your own money

in the trade yeah then confirmation bias

takes over exactly and you convince

yourself of all the reasons why it

should go up

and you ignore all the reasons why it is

actually going down yeah

and he goes you are you are exactly

right that is exactly the problem yeah

well this is why you’ve given us three

books now six books go back to watch

last week’s episode because again i do

think it’s a lot about psychology and

it’s admittedly where i have failed

and um

why i’m so happy with what we’re doing

right we’re placing trades and i can say

i’ve never looked

i’ve never looked all week it’s like it

happens it happens there’s i have

protection on the downside if it goes up

so i’m having a blast so far so much so

i even moved some more money in so she

gets you get the notes though when it’s

uh oh yeah no i get yeah i get it yeah

but i’m not uh

believe me in the past i would have that

ticker symbol across my screen right

now

we’ll talk about that when we look at

the potential trades for next week but

you know

when you lose you’re losing very little

yeah it’s awesome

and more importantly when you lose when

you lose it’s a small part small

percentage of your portfolio yeah that

risk risk calculator is uh outstanding

so dan thank you very much for this i

appreciate it let’s get on to episode

number two thanks buddy all right

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