Trading Software and Books Reviews

The Psychology of Electronic Trading Review

This book is not, as some have thought, about electronic day trading. It is about the paradigm shift towards electronic trading that has been taking place around the world over the past decade. In many ways this is a complementary book to Patrick Young’s Capital Market Revolution, which explored the industry’s transition to electronic trading.

While a most interesting read, the book’s style is that of a textbook on the psychology driving the changes, and on the primary and secondary effects this has on the trader. For example, while the electronic medium may allow, on the one hand, for Young’s transparency, liquidity and accessibility within the markets, it also provides opportunities for gamblers to lose large sums of money. Seeto devotes a considerable amount of time to examining gambling attitudes to trading, as well as the ease and subsequent danger and impact of over-trading.

The purpose of the book is to discuss, in an informative and enlightening way, the challenges and bonuses in trading the markets electronically. The author, an experienced institutional trader and private client adviser, then walks the reader through processes and procedures to take advantage of this ever-improving trading environment. At the same time he cautions about the challenges of over-trading and the increased challenges provided by the availability of information.

The depth to which this book explores its subject and its textbook style will not appeal to everyone. However, time taken to explore the ideas will be a worthwhile investment. For some, it may prove to be a most profitable investment.

This article was originally published in the Sep/Oct 07 issue of YourTradingEdge magazine (www.YTEmagazine.com). All rights reserved. © Copyright 2009, MarketSource International Pty Ltd.

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