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Alpha Trader: The Mindset, Methodology and Mathematics of Professional Trading
Trading is a chaotic, complex, and loosely-structured game played by the smartest minds and most expensive computers in the world. It is the ultimate puzzle. Few can trade at an elite level for an extended period. The game is constantly changing and the rules, mechanics, and probabilities are difficult to observe and forever in flux. Just when you think you’ve got a BAM.You get punched in the mouth.Trading attracts intelligent, driven individuals who see enormous financial rewards and few barriers to entry. But no amount of intelligence or skill is enough if you are irrational, undisciplined, or overconfident. The best analysis is useless if you keep reaching for the self-destruct button. How do you survive and excel in this high-stakes competition? How do you become an Alpha Trader?The answer is mindset, methodology, and math.ALPHA TRADER is not a behavioral economics textbook and it is not a boring, theoretical deep dive into trading psychology. It’s a practical guide full of actionable information, exciting and relevant trading floor stories, concisely-distilled research, and real-life examples that explain and reinforce critical concepts. The book details the specific strategies, tactics, and habits that lead to professional trading success. It will help you become more self-aware, rational, and profitable.This book will make you a better trader. It will help you unlock more edge and it will motivate you to become an expert in your market. It covers practical and essential topics like strategy vs. tactics, microstructure, market narrative, technical analysis, sentiment, positioning and systematic risk management. It will explain the importance of adaptation, rational thinking, behavioral bias, and risk of ruin.Brent Donnelly, the author of ALPHA TRADER, has been a professional trader for more than two decades and has been writing about macro and markets for more than 15 years. His writing style is engaging, approachable and entertaining and he has the experience and knowledge of a veteran professional trader. His first book, The Art of Currency Trading is a bestseller and has received rave reviews.Brent has worked as a senior FX dealer at some of the biggest banks in the world. He has traded global macro for a Connecticut hedge fund, and he has day traded equities with his own money. He loves trading and he loves writing about it.ALPHA TRADER is for traders of every skill and experience level. Veterans and rookies alike will benefit as the book digs into topics like self-awareness, discipline, endurance, and grit. Learn the common traits of winning traders, the myriad sources of trader kryptonite, how to improve your decision-making, and how smart people do stupid things, all the time.Professional trading is a lifelong journey of self-improvement, struggle, adaptation, and success. This book will help you level up on that journey.Be rational and self-aware.Learn, adapt, and grow.Unleash the Alpha.
705 pages, Kindle Edition
Published June 12, 2021
207 people are currently reading
1102 people want to read
About the author
Brent Donnelly
7 books49 followersBrent Donnelly has been trading currencies since 1995 and is currently a senior FX trader at HSBC New York. He writes a widely read and highly respected macro and FX daily called AM/FX. Over the course of his career, he has been a market maker, trader, and senior manager at some of the top banks in foreign exchange. He has extensive experience trading spot FX, interest rate products, FX options, stock index futures, single name equities, and commodities.
Brent is a respected macroeconomic and currency analyst with the unique perspective of a senior risk taker. His work has been quoted by the Economist, the Wall Street Journal, Financial Times, Bloomberg, and CNBC.
Before joining HSBC, Brent was head of G10 Spot Trading at Citi New York and global head of G10 FX Trading at Nomura New York. He was also a portfolio manager at a major hedge fund in Connecticut for three years. He created and wrote a cartoon called “Daft Planet,” which aired on TV in Canada.
Brent is a respected macroeconomic and currency analyst with the unique perspective of a senior risk taker. His work has been quoted by the Economist, the Wall Street Journal, Financial Times, Bloomberg, and CNBC.
Before joining HSBC, Brent was head of G10 Spot Trading at Citi New York and global head of G10 FX Trading at Nomura New York. He was also a portfolio manager at a major hedge fund in Connecticut for three years. He created and wrote a cartoon called “Daft Planet,” which aired on TV in Canada.
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Displaying 1 - 30 of 33 reviews
January 17, 2022
being a trader for 25 year found this book to be fantastic
I started trading in 1992 ; saw so many crashes and different types of markets ; read many books but nothing could be more accurate and truthful than this book! Well done Brent Donnely! Ps : i was your client at the time you were at citi ; nomura and hsbc ! A jewel book!
I started trading in 1992 ; saw so many crashes and different types of markets ; read many books but nothing could be more accurate and truthful than this book! Well done Brent Donnely! Ps : i was your client at the time you were at citi ; nomura and hsbc ! A jewel book!
April 8, 2024
Alpha Trader is an incredible book for discretionary traders, utterly packed with insights. There is a strong emphasis on the mindset aspect of trading. A huge portion of this game is building processes that prevent our worst system-one instincts from running amok. Donnelly puts it thus:
He investigates, with reference both to his personal experiences and a study of the cognitive science literature, which psychological traits are most likely to lead to trading success – conscientiousness and rationality come out on top. The discussion of cognitive biases was surprisingly insightful. I say “surprisingly” because the topic comes up so often that I wasn’t expecting to learn many new things, but Donnelly expertly contextualises the cognitive biases, highlighting flavours of them that are specifically related to trading, For example, he describes the “chasing bias” (which I have noticed in myself) – the tendency for people to want to put on trades in the direction of the market (e.g. buy when it’s going up), which is sort of a combination of recency bias, system one FOMO, etc.
The second half of the book shifts the spotlight towards methodology (while still reiterating the importance of mindset). Donnelly explains how he thinks about narrative, sentiment, and portfolio management. The discussion is very pragmatic, taking into account not just individual human biases but organisational constraints. For example, Donnelly espouses the Mike Platt view (see his Hedge Fund Market Wizards interview) that trader profits should be structured like a call option, meaning that you increase your bet sizes as you make more PnL. There are many other valuable ideas here, so valuable in fact that I don’t feel it is appropriate to discuss them further here.
All said, I place this book in a similar category to Trader Construction Kit, though Alpha Trader is slightly more focused on trading mindset and philosophy as opposed to TCK’s emphasis on the nuts-and-bolts practicalities, which though necessary, are sometimes dry. Alpha Trader is an unambiguous must-read for any aspiring discretionary trader.
My highlights here.
Every trader is a steaming hot bowl of bias stew and must maintain self-awareness and lucidity behind the screens as the trading day oscillates between boredom and terror.
He investigates, with reference both to his personal experiences and a study of the cognitive science literature, which psychological traits are most likely to lead to trading success – conscientiousness and rationality come out on top. The discussion of cognitive biases was surprisingly insightful. I say “surprisingly” because the topic comes up so often that I wasn’t expecting to learn many new things, but Donnelly expertly contextualises the cognitive biases, highlighting flavours of them that are specifically related to trading, For example, he describes the “chasing bias” (which I have noticed in myself) – the tendency for people to want to put on trades in the direction of the market (e.g. buy when it’s going up), which is sort of a combination of recency bias, system one FOMO, etc.
The second half of the book shifts the spotlight towards methodology (while still reiterating the importance of mindset). Donnelly explains how he thinks about narrative, sentiment, and portfolio management. The discussion is very pragmatic, taking into account not just individual human biases but organisational constraints. For example, Donnelly espouses the Mike Platt view (see his Hedge Fund Market Wizards interview) that trader profits should be structured like a call option, meaning that you increase your bet sizes as you make more PnL. There are many other valuable ideas here, so valuable in fact that I don’t feel it is appropriate to discuss them further here.
All said, I place this book in a similar category to Trader Construction Kit, though Alpha Trader is slightly more focused on trading mindset and philosophy as opposed to TCK’s emphasis on the nuts-and-bolts practicalities, which though necessary, are sometimes dry. Alpha Trader is an unambiguous must-read for any aspiring discretionary trader.
My highlights here.
October 22, 2024
8.5/10. Andrew Tate ruined the name. Other than that, it's great for anybody who works/has an interest in the industry. Very relatable and useful.
May 25, 2025
Required Reading for All Traders
This book has it all for trading beginners, and I’m sure its a good read for veterans as well. It touches on the traits that make good traders, the mindset required to succeed, trade idea generation, and the mechanics of risk management. There are plenty of illustrative examples including some of Brent’s real trades. I’m so glad I found this piece. It has already improved my trading.
This book has it all for trading beginners, and I’m sure its a good read for veterans as well. It touches on the traits that make good traders, the mindset required to succeed, trade idea generation, and the mechanics of risk management. There are plenty of illustrative examples including some of Brent’s real trades. I’m so glad I found this piece. It has already improved my trading.
January 29, 2022
Another excellent Trading book by Brent Donnelly
I read Brent’s first book a few years ago and gave it a 5 star rating on Amazon. To my mind, of all the books I had read, it’s a significant number, no-one encapsulated trading for me than he had in a single book.
Then Alpha Trader was published and in my initial read, felt it was not as good as his first book. I have just completed it for the second time and accept that my biases, mindset and general outlook were the issue and re-reading it with a more open mind and having ridden the cobbled trading broad for another two years, just how much I still had to learn and to grow in what is a tough business this is & without flexibility and a open mind with an ever ending need to grow as the world changes I learnt so much and am better for having read it again. Thanks Brent for sharing your vast knowledge with us.
I read Brent’s first book a few years ago and gave it a 5 star rating on Amazon. To my mind, of all the books I had read, it’s a significant number, no-one encapsulated trading for me than he had in a single book.
Then Alpha Trader was published and in my initial read, felt it was not as good as his first book. I have just completed it for the second time and accept that my biases, mindset and general outlook were the issue and re-reading it with a more open mind and having ridden the cobbled trading broad for another two years, just how much I still had to learn and to grow in what is a tough business this is & without flexibility and a open mind with an ever ending need to grow as the world changes I learnt so much and am better for having read it again. Thanks Brent for sharing your vast knowledge with us.
September 20, 2021
I'm not a trader but I found the concepts explained within this book extremely useful.
I've read books like Thinking Fast and Slow, Superforecasting, etc so I'm familiar with the concepts introduced here. What makes this book interesting is Brent's personal anecdotes / stories - which weave in behavioural biases, risk management tools, etc.
If you're looking for a way to make money easily using Technical Analysis, then this is not the book for you. Block some time out in your calendar and finish this book in one/two sittings, you won't regret this.
I've read books like Thinking Fast and Slow, Superforecasting, etc so I'm familiar with the concepts introduced here. What makes this book interesting is Brent's personal anecdotes / stories - which weave in behavioural biases, risk management tools, etc.
If you're looking for a way to make money easily using Technical Analysis, then this is not the book for you. Block some time out in your calendar and finish this book in one/two sittings, you won't regret this.
April 22, 2024
There are some very good strategies, tactics, recommendations, and processes in here. The focus is on psychology vice making money. The book seems to be what the author worked on during days in which he finished trading early. This book lost some stars because it is written for traders that have reached such a high level that it is of little good to the masses. Advanced grammar and punctuation is not helpful if you can’t speak the language.
September 11, 2021
A fantastic look into what it takes to create some sort of systematic process in a discretionary trading style. Lots of relevant examples, clear and engaging style. This book is truly fantastic and would be great for anyone to read, whether they’re an independent trader, a bank trader, or a hedge fund trader.
July 3, 2022
A book with something for everyone of every level
Read
April 7, 2023Çok keyifliydi okuması.
February 9, 2025
Alpha trader is an excellent blend of all topics surrounding trading. As the author, Brent Donnelly, describes it in the first few lines of this book,
> Every trader is a steaming hot bowl of bias stew and must maintain self-awareness and lucidity behind the screens as the trading day oscillates between boredom and terror.
>
This is the cornerstone idea of the book, and every other concept described is directly or tangentially related to it.
The book’s detour on trading starts on with an excellent and exhaustive deep-dive in behavioural economics. Many of the main biases and flaws concerning human behaviour on decision-making are elegantly introduced and explained, finalising with their respective exemplification in the world of trading - as could not be otherwise. Another interesting concept discussed concerning this topic is the different thinking processes human beings engage with under different situations - which is originally and thoroughly described in *Thinking Fast, Thinking Slow* by Daniel Kahneman, unarguably the father of behavioral economics (with special mention to his lifetime colleague Amos Tversky).
After this walk on the mindset , the author moves onto more technical concepts regarding methodology. Risk management is firstly discussed, expounding the key features to take into account when establishing a risk management framework: risk appetite, free-capital availability and time horizon. Then, he delves into position sizing, emphasising the crucial dynamic behaviour of this concept attending to both exogenous factors (e.g., market conditions, trade risk-reward appeal, dominating narrative) as well as endogenous factors (main one being current performance and the consequent free-capital at disposal) to accurately calibrate the size when entering a position. Again, all these concepts are concretised through insightful real examples Brent himself has been through his career.
Another fundamental concept discussed is market microstructure. The author highlights the importance of being intimately familiar to the structure of the market the operator trades in, including studying the different market participants, how they operate, liquidity of the market and volatility. Mastering all this results essential when developing an edge on the market.
Finally, more contentious topics such as technical analysis and positioning and sentiment are brought into the discussion. The author is extremely cautious when going over them: though he does not demonise them as some practitioners and academics would nowadays - and, in fact, defends the usefulness that remains in such tools -, not only he clearly states their strong points but also makes special emphasis on the shortfalls these techniques entail. The equilibria the author introduces when discussing these topics seems really harmonious to me, since I consider myself an avid supporter of the golden-mean point.
The “Alpha Trader” concept naturally stems throughout the book. A repetitive structure emerges when jumping onto new ideas: once the concept has been introduced and explained, wrong approaches and bad attitudes towards it are presented, moving after on to how an “alpha trader” might deal with these flaws and what the correct behaviour should be.
> Every trader is a steaming hot bowl of bias stew and must maintain self-awareness and lucidity behind the screens as the trading day oscillates between boredom and terror.
>
This is the cornerstone idea of the book, and every other concept described is directly or tangentially related to it.
The book’s detour on trading starts on with an excellent and exhaustive deep-dive in behavioural economics. Many of the main biases and flaws concerning human behaviour on decision-making are elegantly introduced and explained, finalising with their respective exemplification in the world of trading - as could not be otherwise. Another interesting concept discussed concerning this topic is the different thinking processes human beings engage with under different situations - which is originally and thoroughly described in *Thinking Fast, Thinking Slow* by Daniel Kahneman, unarguably the father of behavioral economics (with special mention to his lifetime colleague Amos Tversky).
After this walk on the mindset , the author moves onto more technical concepts regarding methodology. Risk management is firstly discussed, expounding the key features to take into account when establishing a risk management framework: risk appetite, free-capital availability and time horizon. Then, he delves into position sizing, emphasising the crucial dynamic behaviour of this concept attending to both exogenous factors (e.g., market conditions, trade risk-reward appeal, dominating narrative) as well as endogenous factors (main one being current performance and the consequent free-capital at disposal) to accurately calibrate the size when entering a position. Again, all these concepts are concretised through insightful real examples Brent himself has been through his career.
Another fundamental concept discussed is market microstructure. The author highlights the importance of being intimately familiar to the structure of the market the operator trades in, including studying the different market participants, how they operate, liquidity of the market and volatility. Mastering all this results essential when developing an edge on the market.
Finally, more contentious topics such as technical analysis and positioning and sentiment are brought into the discussion. The author is extremely cautious when going over them: though he does not demonise them as some practitioners and academics would nowadays - and, in fact, defends the usefulness that remains in such tools -, not only he clearly states their strong points but also makes special emphasis on the shortfalls these techniques entail. The equilibria the author introduces when discussing these topics seems really harmonious to me, since I consider myself an avid supporter of the golden-mean point.
The “Alpha Trader” concept naturally stems throughout the book. A repetitive structure emerges when jumping onto new ideas: once the concept has been introduced and explained, wrong approaches and bad attitudes towards it are presented, moving after on to how an “alpha trader” might deal with these flaws and what the correct behaviour should be.
September 2, 2025
Alpha Trader isn’t about chasing chart patterns or finding the perfect setup, it’s about learning how to think and act like a professional trader. The biggest lessons for me were cutting losses fast instead of waiting for breakeven, focusing on process over outcome, and watching out for biases like anchoring and hindsight that sneak into every decision. I also liked how it pushed me to backtest ideas, think in probabilities, and turn insights into real trading rules I can actually follow. It’s not really a beginner’s guide, but if you’re serious about trading and want something that forces you to build discipline and a stronger mindset, this book is worth the read.
February 17, 2022
The author is an FX trader who trades on very short timeframes. He also trades for a large organization - a bank. Because of this, his approach to many things is different than mine making portions of this book not applicable to me.
However, I was able to ignore some of the details and focus on the higher-level concepts, so I was able to get some value. He also has some unique approaches to thinking about things like overbought/oversold levels that I found useful.
However, I was able to ignore some of the details and focus on the higher-level concepts, so I was able to get some value. He also has some unique approaches to thinking about things like overbought/oversold levels that I found useful.
January 3, 2022
An easy read, some is likely things you've probably heard before but it was refreshing to read it all in one place from an industry veteran. I appreciated hearing what Brent thinks is important to successful trading, with examples, and a very well summarized "bringing it all together" chapter at the end.
The few trading stories in the book are awesome as well.
The few trading stories in the book are awesome as well.
November 3, 2024
Gercekten enfess bir kitap, tradingin sadece suruyle ve piyasayla degil kendinle de bir mucadele oldugunu guzel yansitmis. Sadece traderlar degil herkes kendini daha iyi anlamak icin okuyabilir. Ozellikle yanilgilari iyi listelemis, kendi stratejisini yalin anlatmis. Risk analizini nasil yonettigi gibi konular var. Okumasi da akici ben 1 ayda bitirebilmis olsam da.
October 1, 2025
One of the best trading books and the narration is just fun and engaging, lot of important insights and while I’m no market maker or a hedge fund trader, the concepts are presented in a way that feel scalable for any account size, most information being presented in a way that makes it suitable for any sized trader.
February 9, 2023
Good book. Probably justifies a second read, with the one exception, that if you have survived many years of trading, you probably know much of the content, even if you haven't articulated it as well as Brent does.
August 23, 2021
I seldom purchase hardcopy nowadays but this is one of those that I will keep a hardcopy for future reference / re-read. Kudos to Brent for such a comprehensive book on trading.
March 2, 2022
Being able to read this book in a very volatile, terror-stricken market, is so damn good.
December 11, 2022
Very good ultimately
January 11, 2023
This has to be among the top 5 trading books I ever read. Packed with golden nuggets.
April 3, 2023
A nice book, indeed.
September 1, 2023
Be agile.
April 12, 2024
One of the best trading books I've ever read
September 25, 2024
One of the most comprehensive guides to building your own trading system, unlike many books which teach you a already known methodology
January 1, 2025
เป็นหนังสือ พื้นฐานสำหรับผู้เริ่มต้น แต่เป็นจุดที่สำคัญมากๆ
February 27, 2025
Trader olmaya merak salan herkesin okuması gereken bir kitap
Sonlara doğru biraz sıkıldım ama tavsiye ederim
Sonlara doğru biraz sıkıldım ama tavsiye ederim
April 15, 2025
Not a bad book but more for beginners than someone with a few years of experience. I got a few bits here n there Im adding to the system so it's useful. Just a lot of pages to get through in between
July 23, 2025
some witty nugget in here. Refreshing read for new and old traders
August 12, 2025
A lot of this went over my head but he did a good job making it understandable
Displaying 1 - 30 of 33 reviews