The Investor's Quotient: The Psychology of Successful Investing in Commodities & Stocks

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!

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.

Believe it or not, I had despised the book much just because of its title. I had thought of it as just one of the many thousands of other whatever Q books the cheap marketers try to sell. I had bought it just because it's so "affordable" relatively speaking. The fact is: I had been absolutely wrong. Mr. Berstein, a psychologist, really put something solid behind his propositions and recommendations. We read in many books why tips kill. Mr. Berstein really went into the very depth of our minds to explore why we kept on doing stupid things. As a pseudo intellect (ha ha), I bought his concept and that's the very beginning of my new professional trading life (avoiding any form of tipsters and tips). For those who are suffering from obsessive compulsive disorder on "tips", this is the book for you and it might help you a lot to stop your tips induced losing streak!

These are Mr. Bernstein's words and I echo them. After attempting to analyze repeatedly what was "wrong" with my system, I finally asked the winning question: maybe I should find out what was going on with me that put me on the wrong side of the trade. I purposely bought this book one evening and spent the nite reading it. Sleep well worth losing. I finally figured out my particular method of self-sabotage and have begun to see changes in my handling of trades and of people and situations. Mr. Bernstein's wisdom and experience is an invaluable resource that everyone who wants to achieve success or increase his rate of return, should read and act on.

Prior to reading IQ, I was a futures trader that had met with moderate success. My technical analysis and systems were sound. I knew my trading systems inside and out. I knew their strengths, weaknesses and rules, but their real time application was just not measuring up to my models. The difference was me -- my trading psychology. This book completed the circle for me as it showed me that real success in trading depends on the individual and not so much on any one trading system.