Trading Psychology Books

Trading Psychology Books

What is a trader’s psychology?

The psychology of the trader, just like any other part of life, decodes the success and failure rate of the trader in the market. A trader can make decisions that will reflect the profits and the losses that are being made daily.  There are various different types of Trading Psychology Books. 

The trading behaviour in the market is character-specific. And there are only two prominent characteristics people have: either being too greedy or too fearful. Greed and fear. These are the two emotions that need tackling in a natural sense. Most people don’t take this seriously, despite the fact that these are the drivers of the journey that trading is. 

Greed is nothing but the desire to get rich early. 

This emotion is a personal goal at first, but as time passes, it becomes pressurised with the desires and aftermath of it. 

Earingong more is the correct type of greed, but only if carefully integrated with discipline.

Discipline. This is the first line of defence, the Optimus prime to your Decepticon failure. If you are disciplined enough, then the fact that winning is 100% a true thing that awaits you is not false at all. 

Discipline, just like greed, comes in many forms. A disciplined trader knows what technical analysis to avoid. The fact that they have to know a lot is correct, but knowing the things that have to be avoided for now is more important in the market sometimes. 

This is just an example of how the traders have to be disciplined and focused enough. 

Discipline also comes in the form of research. The research that has to be done in order to invest in a sector or a stock, for example, are the prominent points where success lies.

To keep it simple, greed does nothing but clouds the turf of rationality and reality, just like being drunk or high, being under the influence. 

There are books that can help traders survive the market and answer the most basic doubts like how important psychology is in trading? How to develop a trader’s psyche? How to survive in the market?

Let us read about some of the best trading psychology books below:

Trading in the zone:

Written by Mark Douglas, this is one of the best books written on trading psychology. Let us read about what this book deals with and tells the traders, in brief:

The author compares a good trader to an athlete that is the best in class in the world. Both the individuals have their reflexes, skills, instincts and also a willingness to be the best. Both of them have reached a point in their careers where a winning performance is a clear process of the subconscious. To reach into that zone, Mark says, a trader needs to self impose self-discipline and stick to a system that is consistent. Investors that are still new to the market will look at this book with respect and value the message it has for its readers.

Reminiscence of a stock operator: Edwin Lefèvre

The book was first published in 1923 and has remained a classic ever since. Written by Edwin Lefèvre, the book traces the life of the legendary trader Jesse Livermore. The book is a perfect blend of storytelling and provides the correct insights into what it takes to be the right trader and the things that can ruin you as a trader. This book is not a one time read, and It can tell you new things each time you give it a read. The knowledge that it provides is immense, and there is hardly anything that it won’t cover. 

The book has content for every trader. It doesn’t matter if you are already making money in the market or finding it difficult. If you have just begun trading, then this book should be on the top of your must-reads. This book will take you on a journey of a trader who has done it for life. The experiences and insights might help you through the times that the trader has already seen. 

Beyond Greed and Fear by Hersh Sherfin:

Another great piece for the traders to understand their own state of mind in a better sense. The book covers a lot of statistics and real-life experiments that point out the vulnerabilities of the human mind when money is at stake, and the probabilities of multiplying it depend on the mind alone. We as humans are susceptible to overthinking and finding it hard to decide between two very good options which by default, exist. Being aware of such pits makes it easy to not fall into them. 

The book also deals with how we can see the falls, and still, we think that this is not what it feels like and fall eventually. We generally think about what we are doing, and no one else is doing that. The thing is that each mind has a different point of view and is hindered by different biases. These things force us into consequences that have bad outcomes. This book deals with clear decision-making skills and how to avoid the things that we feel like we cannot. 

 Market Wizards:

Perhaps the best trading books of all time, this is something that a lot of successful traders recommend to the novices. In a text format, the book contains the interviews of some of the best traders around the globe where they share their experiences. Mostly unusual gains that they made with a little capital. Something that everyone wants to learn these days. The sa,e traders, have had some very hard days, and that is what they have shared in the book. The content is plain experience and nothing else. The writer has put together almost every aspect of a trader’s life.

The Intelligent Investor:

The intelligent investor, written by Benjamin Graham, is considered the best in terms of what are basic trading strategies and is the one underlying principle that drives all the trading strategies. The book has been the basis of a lot of different reading strategies since it was first published in 1949. Warren Buffet himself promoted the book. And he has claimed that it is the best book ever written in terms of investing knowledge.

Warren also mentions that the book has been of great support to him when it comes to the primary sources of the information he holds on investments. The writer has put forward the idea of identifying the fundamentals of investments and then looking for an entry position that can get you in lower than the price value. 

Sway: The Irresistible Pull of Irrational Behaviour:

The book is written by two authors, Ron and Ori Brafman and it can for sure make any reader turn the pages in anticipation about what is about to be written next.

The book tries to address the problems known to almost every trader but yet, the powerlessness they possess in terms of getting out of them. The book even deals with the reasons as to why people stay in personal relationships and then very cleverly relates it to trading. 

The book also talks about the issues that the traders are mostly unaware of. The authors try to examine the facts behind the decision-making abilities that the traders have and their relevance when it comes to tackling the market, 

The book touches the concepts like Diagnostic bias. That is the inability to see things beyond a particular vision which has its own limits. Also, the book deals with the chameleon effect, and this is the habit of a person that deals with how he or she picks up the qualities that are assigned to them. All of these things are more psychological, but they also have some effect or the other on a trader.

 The research with which the book is written can help the trader to reach new heights and find motivations that can drive their decision making. This, in turn, can help them to make better decisions that can help them grow in the market. 

Trading Psychology 2.0: From Best Practices to Best Processes:

The book is written by the legendary author, Dr Brett SteenBarger. This book should also be on the top of the must-read in every trade’s list. The book promises a theoretical approach and survival expertise that can help a trader in surviving the market. 

Dr Brett is one of the best at what he does—currently serving at SMB Capital, one of the most famous trading firms run by Steve Spencer and Mike Bellafiore. 

The firm takes the job seriously, and so does Dr SteenBarger. He also happens to be well oriented in terms of human psychology and the performance-based disciplines that have to be followed by successful traders. 

The doctor also happens to be a professor at the University of New York, where his field of interest is therapies for the people who don’t actually need them. Since the person holds such deep expertise in whatever he does, it is safe to assume that he is also aware of the responsibility on his shoulders as a writer. 

The book represents a comprehensive guide by virtue of which the traders can apply the math behind psychology in the market to master the art that trading is. In almost 400 pages of pure knowledge, the writer has put forward decades of research-based work personally where the practical solutions are provided as experience that the author himself had.  

The good fact about the book is that it seldomly follows or even contains monotonous theories. The book is a collection of applicable steps that can be taken so that the attitude of the person in terms of how to deal with the market can be changed instantly.

After reading these Trading Psychology Books, the traders will have a complete understanding of the research that is conducted from the very core of trading psychology. It will help the traders examine the psychology applied in the real arena, where money is made and, more importantly, lost. The book will take the traders on a journey viewed from a veteran’s POV. Since that is the case, the reader will have the insights that come with years of experience and losses that cannot be managed only by a handful of people.

Bottom Line: 

The Trading Psychology Books can help but what really will help is the fact how much do you get inside the market. The more you are in there, the more experience you gain. Read as much as you can, trade as much as you can, the money will come and it will most definitely follow expertise.


Even if I read all this will, I still lose money in the market?

Yes, the loss is not something that can be managed by reading about the market psyche only. You need expertise at a lot of different places, and most importantly, you need to be updated as to what is happening in the markets. Even if you know all this, there is still no guarantee that you will never lose.

What are some assets that I can trade on?

There are various assets that traders can trade on to make money in the stock market. A market is vast, and the “Stock market” is just a smaller place within that circle. The equities market, the forex market, the Futures market, CFD market are all the places where trading can be conducted. But, when it comes to trade, what? There are almost 200+ assets in each of the above-given categories.

How do I Begin Trading?

To begin trading, first, you need a stockbroker; you don’t have to worry about that because we bring you the leading online broker HFTrading. The broker has been in the market for a long time and is the trading name of CTRl investments Pvt, Ltd. With the broker. The traders can trade on more than 300 CFD tradable assets via three different trading accounts. 

CySEC   (The Cyprus securities and exchange commission.) regulates HFTrading’s parent firm CTRL investments. 

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