Martin - The Inner Voice of Trading

Michael Martin has written an insightful book for both the expert and novice. His writing style is enjoyable, and the content is unforgettable.

Anthony Scaramucci, Founder, SkyBridge Capital, and Author of
Goodbye Gordon Gekko

I live by Michael Martins words. The first chapter of my investing book was titled Turn Off the TV. Now, with the social web, finding strategy mentors and learning faster are all possible. Trading is a skill you can learn, and Martins book is a great read for any trader.

Howard Lindzon, Founder, StockTwits

In The Inner Voice of Trading, Michael Martin recounts his own quest to become a successful trader, illuminating his journey with engaging trading episodes. Join Martin at his trading desk as he provides important insights into the art and science of balancing thoughts and feelingsand catching the big one.

Ed Seykota

Some people trade and either dont or cant teach; some people teach and have never traded; Michael Martin can teach extremely well and is an experienced trader. This rare combo is a necessity to those who want to succeed in the markets. Read and learn!

Victor Sperandeo, Founder, Alpha Financial Technologies, LLC

The Inner Voice of Trading provides insights that may help both discretionary and systematic traders adhere to their extensively researched and tested trading programs and be better insulated from their occasional emotional (fear, greed, pride, and so on) temptations to deviate into uncharted waters.

Bill Dunn, DUNN Capital Management

Michael Martin provides a toolbox to fortify the most important aspect of successful trading: the six inches between your ears. With fresh insights from many of the markets greatest traders, The Inner Voice of Trading will put you on the path to improving your profits and losses.

John Del Vecchio, Portfolio Manager, AdvisorShares Active Bear ETF

Too many new and developing traders move from strategy to strategy in the hope of improving their under performance. In The Inner Voice of Trading, Michael Martin helps us understand how we first must work on ourselves before we can become the trader we want to be. Find a place in your trading library for this latest gift to the trading community.

Mike Bellafiore, Partner, SMB Capital, and Author of One Good Trade

Eliminate the Noise, and Profit from the Strategies That Are Right for You

Michael Martin

Vice President, Publisher: Tim Moore
Associate Publisher and Director of Marketing: Amy Neidlinger
Executive Editor: Jim Boyd
Development Editor: Russ Hall
Senior Marketing Manager: Julie Phifer
Assistant Marketing Manager: Megan Graue
Cover Designer: Alan Clements
Managing Editor: Kristy Hart
Project Editors: Jess DeGabriele and Jovana San Nicolas-Shirley
Copy Editor: Krista Hansing Editorial Services, Inc.
Proofreader: Water Crest Publishing, Inc.
Senior Indexer: Cheryl Lenser
Senior Compositor: Gloria Schurick
Manufacturing Buyer: Dan Uhrig

2012 by Michael Martin
Publishing as FT Press
Upper Saddle River, New Jersey 07458

This book is sold with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting, or other professional services or advice by publishing this book. Each individual situation is unique. Thus, if legal or financial advice or other expert assistance is required in a specific situation, the services of a competent professional should be sought to ensure that the situation has been evaluated carefully and appropriately. The author and the publisher disclaim any liability, loss, or risk resulting directly or indirectly, from the use or application of any of the contents of this book.

FT Press offers excellent discounts on this book when ordered in quantity for bulk purchases or special sales. For more information, please contact U.S. Corporate and Government Sales, 1-800-382-3419, .

Company and product names mentioned herein are the trademarks or registered trademarks of their respective owners.

Inner Voice of Trading is a trademark of Gotham Commodity Corporation.

All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher.

Printed in the United States of America

First Printing September 2011
ISBN-10: 0-13-261625-4
ISBN-13: 978-0-13-261625-6

Pearson Education LTD.
Pearson Education Australia PTY, Limited.
Pearson Education Singapore, Pte. Ltd.
Pearson Education North Asia, Ltd.
Pearson Education Canada, Ltd.
Pearson Educatin de Mexico, S.A. de C.V.
Pearson EducationJapan
Pearson Education Malaysia, Pte. Ltd.

Library of Congress-in-Publication Data:

Martin, Michael R. (Michael Robert), 1966
The inner voice of trading : eliminate the noise, and profit from the system and strategies that are right for you / Michael R. Martin.
p. cm.
ISBN-13: 978-0-13-261625-6 (hardcover : alk. paper)
ISBN-10: 0-13-261625-4 (hardcover : alk. paper)
1. Floor traders (Finance)United StatesPsychology. 2. Futures marketUnited
StatesPsychological aspects. 3. Financial futuresUnited StatesPsychological aspects.
4. InvestmentsPsychological aspects. I. Title.
HG4621.M38 2011
332.645dc23
2011023680

Dedicated to my parents,
Robert J. Martin and
Anne M. Martin

Michael Martins book, The Inner Voice of Trading, provides important insights about the art and science of balancing thoughts and feelings in trading.

Traders tell wonderful stories about making phenomenal profits by being in the zone, at one with the markets, living in the moment of now. From there, trading seems effortless. The trick, then, is to stay in the now. If you get impatient or greedy or fearful, you can break the spell and wind up back in the past and future. Fighting your feelings can be anathema to staying in the moment, hence to trading profitably.

In The Inner Voice of Trading, Martin extends the literature on the art and science of staying clear and maintaining mental and emotional balance. He uses examples from his own trading and others to illustrate his pointsparticularly the importance of timely surrender.

Traders know the essential principles of trading: ride your winners; cut your losers; manage your risk; use stops; stick to your system and ignore the news. These principles work well in trading and in life in generalwhen you follow them consistently. Many people, however, find that following rules is not always a whole lot of fun.

Living a principle-centric life takes characterlots of it. Buying highs, selling lows, and collecting seemingly endless strings of whipsaws may bring up unbearably uncomfortable feelings. Martin deals directly with the important character-success connection and illustrates the topic by wrapping it in a series of engaging trading episodes.

One of the pleasures of mentoring traders through my Trading Tribe is that I get to meet, interact with, and share experiences with bright and willing peopleand to watch them grow and prosper. And that brings me to one Mr. Michael Martin who, many moons ago, joins my Tribe.

At first I see an east-coast, street-wise hyper-mensch, a cross between a crusty old cabbie and a stand-up comic. As the group evolves, I witness his emergence as a brother who comes to feel deeply and laugh and wince and cry and grieve along with the rest of us as we all struggle with the personal calculus of our careers and intimate relationships.