Reviewed by Ed Dobson, President, Traders Press, Inc.
Know thyself. 
Nowhere is that exhortation from Socrates to his students more relevant and important than in trading. Understanding your own mental and emotional makeup and how it interfaces with the trading process is more important than the trading method you use or the money management principles you follow...because you can easily subvert your own trading plan, no matter how carefully conceived and organized it is, by committing one or more of the seven deadly sins of trading. As the saying goes, "the best laid plans of mice and men often go awry." 
No matter how much you learn and read about the principles of trading, you can still be your own worst enemy in the market. You may think that you learn from your experiences and say, "I'll never do that (or make that mistake) again"…but then you do…over and over.
Overcoming 7 Deadly Sins Of Trading is, by far, the best book I have ever read on how to "know oneself" as specifically applied to trading. Author, Ruth Roosevelt, herself a long-time trader, is a wonderfully clear writer. I found that I identified closely with her descriptions of the various "sins" -- negative emotions that plague traders, which can act as effective roadblocks to trading success.
It is commonly quoted that "fear and greed" are the two most common emotions that affect traders. After reading this book, I feel that I have a much deeper understanding of these two factors and how to overcome them…and they are only two of seven that are covered in depth.
On a personal note, I felt that the "sin" I am most guilty of as a trader is impatience. Other emotions addressed in depth are pride, anger, recklessness and perfectionism.
Each topic is covered thoroughly and effectively. No stone is left unturned in explaining how a particular "sin" affects traders adversely, and the author offers helpful guidance on how to overcome the negative effects and, thereby, become a better trader.
Some writers on trading psychology portray trading as a battle and a conflict with other participants. Roosevelt has a totally different slant and portrays trading as a wonderful opportunity…nothing to be feared but rather embraced as a rewarding experience with ongoing and endless opportunities. She emphasizes that you are far more in control of trading results than you might imagine…the only factor you cannot control is what the market does. However, you must be aware of and deal with the negative factors discussed in this book before truly being in control of your own trading destiny.
Roosevelt has written another book titled 12 Habitudes of Highly Successful Traders…and she calls these two books the "good and the bad". The "good" will be the topic of next month's column. She writes a weekly column for www.traderspress.com, which offers valuable psychological guidance for traders. Her past articles are archived there and are highly recommended reading.
This book could be titled "Trader, Know Thyself". I would consider it vital reading for any trader who really wants to understand how he or she can control his or her own trading destiny and results. A word to the wise should be sufficient.
Review by
Edward Dobson, President
Traders Press, Inc.
Greenville, SC
Additional details and full table of contents are available on www.traderspress.com.
