2023-01-12 20:12:01
TOP 6 BOOKS ON TRADING PSYCHOLOGY TO IMPROVE MARKET STRATEGIES
Trading is as much about psychology as it is about developing a reliable strategy. Without the mental strength to stick to the plan, the best strategy in the world will not do any good.
Good traders not only develop and master the strategy, but also become more aware of their own qualities (for example, discipline and patience) and develop them, which allows them to implement their strategies more effectively. A variety of books can help traders understand how psychology works in investing.
1. Zonal Trading (written by Mark Douglas). This book is a must-read for anyone who is trying to achieve stability in the market. This book tells about the shortest paths that people often look for, succumbing to fear or greed and allowing something to distract you from your goals.
These problems often cause traders to act irrationally, even if they know better. The book explains in simple words why and how these problems arise, and how to deal with them so that they do not arise.
2. Memoirs of a stock speculator (book by Edwin Lefebvre). Classic books can remain relevant for several generations. This book by Edwin Lefebvre, first published in 1923, is based on the legendary trader Jesse Livermore.
Combining a rich narrative with a deep understanding of what is needed for successful trading (and actions that can ruin a trader), you can reread this book again and again.
Every time you read it, you find new ideas as you accumulate knowledge on the subjects. If you are just starting out in trading, this book should be on your must-read list.
Brafman, Brafman: Cheat sheet for the lucky one (written by Ori and Rom Brafman). The authors solve problems that many traders know about, but seem powerless to prevent them. For example, why it can be so difficult to exit a losing trade.
The book deals with issues that traders are often unaware of. The research and stories in this book can also tell the reader about the hidden motives that drive decision-making. In turn, this can help you make more informed decisions as a trader.
4. The Art of Pure Reason (Rolf Dobelli). The book provides examples of psychological traps that anyone can fall into — not just a trader. Given the 99 pitfalls discussed in the book, many readers will learn something about the choices that can hinder their development.
Market Wizards (Jack Schwager). Each book uses the format of interviews with leading traders. This makes them very informative and gives you an idea of how each trader invests in the markets. You will also read about the trials and challenges that every trader overcomes.
Fascinating and informative, in these books everyone will find something for themselves. From strategy tips to overcoming obstacles, these are eternal books that you can reread over and over again.
The Investor's Quotient (Jacob Bernstein and Jake Bernstein). The book is a complete guide to why so many traders fail because of their psychology. Common problems faced by most traders are identified, as well as tactics and strategies to solve these problems.
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