Book Review: Secret Psychology of Millionaire Traders

I went to the library on Saturday and picked up a few books including this.

From the title and the blurb behind, I'd resonably conclude that this book would shed light on the mentality and what goes through the minds of professional traders like George Soros and the author, who claims to make USD2,500 a day thru trading.

Unfortunately, I have to say that this book is a letdown to say the least. Glad I didn't purchase this book.

I'd have expected that Mr. Conrad Lim would share what goes through his mind and pitfalls of novice traders, what professionals do and think in the heat of a trade, whether facing huge profits or losses.

However, this book starts off with how Lim was a high flyer who was bankrupt and had a second beginning as a stock trader. Then, it moves on to him blasting novice traders for asking stupid questions like, "What instruments are easier to trade? forex? indices? equities?"

The most important chapter would be the second, which could be summarised as such:
1.) Have a plan
2.) Cut your losses, let your profits run
3.) Look for reasons NOT to trade

Number 3 is my main takeaway from this book. It's important to resist rushes of blood to the head and impulse trading, and to set stop losses and profit taking targets BEFORE you make the trade, when you are at your most rational, and to set tight stop losses (within 10% would be my threshold).

After a promising start, the book goes downhill from there, sounding like a contrived, half hearted attempt to increase page count.
He again blasts traders for being stupid, greedy and overconfident.
Then he devotes a whole sub section into explaining why you should not share your opinion with friends. The whole topic was so contrived that I wanted to roll my eyes repeatedly.

The next chapter is even worse. He comes up with 9 trader profiles, and quoting verbatim from the book, " ....to identify with the one that best describes you, simply read through each one until you get the ahh factor."

The profiles were done very badly. He doesn't even state the positives/negatives for each of his "profiles".


It gets worse. The next chapter then introduces itself by saying that these traders' experiences are for you to learn. The "experiences" could be summed up as such:
1.) I was losing money trading
2.) I met the author
3.) the author is a great teacher, trader, mentor etc 
4.) Thanks to him, I'm a successful trader now

with an emphasis on point 3.

All in all, a very poorly written book (except for chapter 2) which could be seen as simply an attempt to create some side income for him (which he admits to, in the book). Far, far poorer than Lim and Adam Khoo's first book, Secrets of Millionaire Investors.

Having read SMI, Profit from Asian Recovery, Profit from downturn and this book, I dare say that if you've read SMI, you've read all the books from Adam Khoo's investing series.

I highly recommend Robbie Burns' "The Naked Trader 2nd Edition" which you can borrow from any library.

My rating for this book: 3/10.

Can't wait for my "The Confession" by John Grisham library reservation to be filled. :)