Trading is a chaotic, complex, and loosely-structured game played by the smartest minds and most expensive computers in the world. It is the ultimate puzzle. Few can trade at an elite level for an extended period. The game is constantly changing and the rules, mechanics, and probabilities are difficult to observe and forever in flux. Just when you think you’ve got a BAM

Trading attracts intelligent, driven individuals who see enormous financial rewards and few barriers to entry. But no amount of intelligence or skill is enough if you are irrational, undisciplined, or overconfident. The best analysis is useless if you keep reaching for the self-destruct button. How do you survive and excel in this high-stakes competition? How do you become an Alpha Trader?ALPHA TRADER is not a behavioral economics textbook and it is not a boring, theoretical deep dive into trading psychology. It’s a practical guide full of actionable information, exciting and relevant trading floor stories, concisely-distilled research, and real-life examples that explain and reinforce critical concepts. The book details the specific strategies, tactics, and habits that lead to professional trading success. It will help you become more self-aware, rational, and profitable. Emotions have no place in trading. Develop a systematic approach that removes emotional biases from your decision-making process. Execute trades based on predefined rules, allowing you to act with discipline and consistency. The second half of the book shifts the spotlight towards methodology (while still reiterating the importance of mindset). Donnelly explains how he thinks about narrative, sentiment, and portfolio management. The discussion is very pragmatic, taking into account not just individual human biases but organisational constraints. For example, Donnelly espouses the Mike Platt view (see his Hedge Fund Market Wizards interview) that trader profits should be structured like a call option, meaning that you increase your bet sizes as you make more PnL. There are many other valuable ideas here, so valuable in fact that I don’t feel it is appropriate to discuss them further here. Brent has worked as a senior FX dealer at some of the biggest banks in the world. He has traded global macro for a Connecticut hedge fund, and he has day traded equities with his own money. He loves trading and he loves writing about it. Every trader is a steaming hot bowl of bias stew and must maintain self-awareness and lucidity behind the screens as the trading day oscillates between boredom and terror.

Maintaining discipline is crucial in the fast-paced world of trading. Resist the temptation to trade excessively, as quality always trumps quantity. Remember, patience is a virtue, and waiting for high-quality setups will yield better results. Successful traders are self-aware and continuously strive for self-improvement. Analyze your trading behaviors, strengths, and weaknesses. Leverage your strengths and work on overcoming your weaknesses to evolve as a trader. Remember, adopting these essential principles and incorporating them into your trading routine can significantly enhance your journey to becoming an alpha trader. Engage with the content, share your own best trading tips, and show your support through likes and comments. Stay committed, keep learning, and look forward to more valuable insights. Amidst the sea of information available, it's easy to drown in complexity. Streamline your trading approach by focusing on a few proven strategies and indicators that resonate with you. Simplifying your strategy will enhance clarity and decision-making.ALPHA TRADER is for traders of every skill and experience level. Veterans and rookies alike will benefit as the book digs into topics like self-awareness, discipline, endurance, and grit. Learn the common traits of winning traders, the myriad sources of trader kryptonite, how to improve your decision-making, and how smart people do stupid things, all the time.Professional trading is a lifelong journey of self-improvement, struggle, adaptation, and success. This book will help you level up on that journey. If you find yourself in a rut or facing challenges, don't hesitate to revisit the fundamental aspects of trading. Revisit the basics, reinforce your knowledge, and reaffirm your understanding of core trading principles. Building a strong foundation is key to long-term success. He investigates, with reference both to his personal experiences and a study of the cognitive science literature, which psychological traits are most likely to lead to trading success – conscientiousness and rationality come out on top. The discussion of cognitive biases was surprisingly insightful. I say “surprisingly” because the topic comes up so often that I wasn’t expecting to learn many new things, but Donnelly expertly contextualises the cognitive biases, highlighting flavours of them that are specifically related to trading, For example, he describes the “chasing bias” (which I have noticed in myself) – the tendency for people to want to put on trades in the direction of the market (e.g. buy when it’s going up), which is sort of a combination of recency bias, system one FOMO, etc.