Atomic Habits and The Power of Habit (James Clear, Charles Duhigg)
Trader's Library #100 · Habits, learning and the mind. How to build the habits a trader's process rests on.
Author: James Clear, Charles Duhigg · Original: Atomic Habits; The Power of Habit; Smarter Faster Better · Year: 2018 · Usefulness for traders: ★★★★☆
What it's about
Clear's “Atomic Habits” teaches building habits through small changes, environment and identity. Duhigg's “The Power of Habit” and “Smarter Faster Better” describe the habit loop (cue, routine, reward) and productivity habits. Duhigg also wrote “Supercommunicators”.
What it gives a trader
Trading is largely habits: pre-session preparation, keeping a journal, following the plan, breaks, the weekly review. Clear shows how to build them in small steps and how to design your environment (e.g. remove from the screen whatever provokes unnecessary trades).
Lessons for traders
- change the system, not just the goal
- design your environment so good behaviours are easy and bad ones hard
- the journal habit is built in small steps, every day
- identity (“I'm a trader with a process”) reinforces habits
What to watch out for
Self-help, not science. The examples are general; you have to apply them to trading yourself.
Discussion
The discussion takes place in Hetman Capital Club (in Polish). Join the discussion in the Club →
Navigation
← #099 The Art of Learning (Josh Waitzkin) · Library index · #101 Stoicism: Marcus Aurelius and Ryan Holiday →
Educational content, not investment advice. The book description is my own summary and assessment, not quotations. Edition details were checked in catalogues and bookshops, and where there was doubt I said so plainly.