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15 Most Important Books to Improve Your Trading Psychology in Stock Market

Updated: Jul 7

Anyone with more than 5-10 trades in a live trading account knows that trading psychology is just as important as trading strategies. Because controlling emotions in the live market is vital to successful trading.


If you're looking to improve your trading performance, it's essential to understand the psychology of trading. Several excellent books on this topic can help you do just that. This blog post will look at the 18 best books on trading psychology and how they can help you become a more successful trader.


Best 15 books on Trading Psychology

Content:

Book 1 - Trading in the Zone

Book 2 - Reminiscences of a Stock Operator

Book 3 - Market Wizards

Book 4 - Trade Like a Monk

Book 5 - Trading Psychology 2.0

Book 6 - Market Mind Games

Book 7 - New Trader, Rich Trader Book 8 - Mastering Trading Psychology

Book 9 - High Performance Trading

Book 10 - Come into My Trading Room

Book 11 - The Disciplined Trader

Book 12 - The Daily Trading Coach

Book 13 - Sway

Book 14 - Atomic Habits

Book 15 - The Psychology of Money

Conclusion

Best Trading Psychology Quotes



1 - Trading in The Zone by Mark Douglas

You will see this book in most categories in the stock market. You could say that it is necessary for trading success and becoming a successful trader in general. That's how excellent it is.


The book starts with an introduction to fundamental and technical analysis and how we can use it in trading. This information alone was enough for me, as I have always struggled to understand this topic.


Trading in the Zone my Mark Douglas

However, reading about the other methods, such as the dangers of trading, taking responsibility, and the impact of our beliefs in trading really helped my confidence grow.


Trading in the Zone will teach you how to set yourself up for success by developing powerful mental habits and attitudes towards your trading.

2 - Reminiscences of a Stock Operator by Edvin Lefevre

Jesse Livermore is one of the most famous and debated traders in history. This book follows his life from his childhood, who he becomes a top trader, to gaining fame as "The Greatest Bear of Wall Street." Earlier, he was known as "Boy Plunger" for his ability to make money in the bucket shops.


Reminiscences of a Stock Operator by Edwin Lefevre

Jesse made several million dollars during the 1907 and 1929 market crashes. He was carrying a massive short position during the 1929 crash and made over 100 Million Dollars, which is equivalent to 1.5 Billion in today's dollars.


Reminiscences of a Stock Operator is a must-read book to understand the thought process of a successful trader.


Trading Psychology Course for Intraday Trading

3 - Market Wizards by Jack D. Schwager

This book is an interview with some of the most famous traders with a long proven track record of success. Some notable name includes Paul Tudor Jones, Ed Seykota, William O'Neil, Richard Dennis, etc.


But Schwager wants to know what they share in common so he can learn more about how best to approach his trading strategies.


Market Wizards by Jack D. Schwager

The factor that stands out most among these experts' insights? It's important not only having your own personal style when it comes time to make trades in the market.


Market Wizards has many series with different successful traders, all of which are equally good.

4 - Trade Like a Monk by Harneet Singh Kharabanda

This is the first and only book by an Indian author and wholly dedicated to trading psychology.


Four primary emotions revolving around trading are greed, fear, regret, and hope. We must develop little extra control over these emotions to develop good trading psychology.


Trade Like a Monk by Harneet Singh Kharabanda

This book conveys the importance of these emotions in trading through different stories from day-to-day life.


Trade Like a Monk helps develop strong trading psychology, which is essential in the trading business.

5 - Trading Psychology 2.0 by Brett N. Steenbarger

The book Trading Psychology 2.0 by Dr. Brett Steenbarger is a must-read for traders who want the best chance at success in this highly competitive industry, especially when it comes to proprietary trading firms like SMB Capital, run by Mike Bellafiore and Steve Spencer, which are famous throughout Wall Street due their extreme profitability rates.


Trading Psychology 2.0 by Brett N. Steenbarger

Brett is a verified expert on mental health, and his work at SMB was highly successful. He has taught as a professor for the State University of New York, emphasizing solution-focused therapies to help those who are mentally well (or not).


Trading Psychology 2.0 gives a detailed guide to applying the science of psychology to the art of trading.


6 - Market Mind Games by Denise Shull

One of the most insightful books on trading I have ever read, "Market Mind Games" by Denise Shull, is an exhaustive study into what drives human emotion and thought processes when faced with uncertainty.


Market Mind Games by Denise Shull

The book goes deep inside the science behind psychology - from biological/physiological academia as well as psychological research--to explain how traders are mentally affected before they make decisions for their financial future or lose all sense of hope in doing so!


Market Mind Games will show you how your mind and emotions function so that we can use them effectively when it comes time for decisions.

7 - New Trader, Rich Trader by Steve Burns & Holly Burns

We can't ignore the masterpiece work of Steve Burns and Holly Burns when discussing trading psychology. This can be divided into two sections - First half covers Steve's experiences as a beginner trader, and the second half explains the stages he becomes a successful trader.


New Trader, Rich Trader by Steve Burns & Holly Burns

Read this book, and you will know what it takes to be a successful trader. It's not an easy journey, but the author has been there before with his years of experience as a trader. He knows how difficult success can seem when everything seems lost until you suddenly find yourself living your dream!


New Trader, Rich Trader's message is clear: "if I could do this, then so too may others." All that needs to be done now are honest efforts to taste success in this field.

8 - Mastering Trading Psychology by Andrew Aziz & Mike Baehr

Andrew Aziz is a famous trader and best-selling author of many day trading books. This time he came up with a simple yet compelling book on trading psychology.

Trading is a roller coaster ride that will take you up and down. Still, if your goal has been to learn from all of the ups and downs to make better decisions next time, then it's worth every mistake!


Mastering Trading Psychology by Andrew Aziz & Mike Baehr

The great thing about trading is those moments when everything aligns just right, so there isn't much risk involved. You'll often fail on this path; hence this book suggests following OODA stands for Observe, Orient, Decide, Act. We should repeat these four steps again and again in our trading.


Mastering Trading Psychology recommends focusing on implementing and executing the strategy as it is, rather than the potential outcome of the strategy."

9 - High Performance Trading by Steve Ward

High Performance Trading is an efficient book that offers 35 steps to fix the trader's psychology in small, realistic steps.


The author has personal experiences as well as advice from expert traders. This guide can be relevant for any trader with style or level of expertise because it deals with one issue at a time while encouraging readers not to worry too much about their finances.


High Performance Trading by Steve Ward

The high-performance system offered by HPT helps individuals deal confidently with whatever situation they may find themselves facing without getting overwhelmed before looking into other aspects like preparation, execution & evaluation, which will allow them to take control over what happens next.


10 - Come into My Trading Room by Alexander Elder

Come into My Trading Room is a book by the noted trader and author Dr. Alexander Elder that aims to take readers from the technical analysis all the way up through identifying money management and timing the trade for success.


With his background in both psychiatry and trading, ALEXANDER ELDER has become one of the most sought-after experts on Wall Street. He founded Financial Trading Inc., which provides intensive training programs for traders worldwide.


Come into My Trading Room by Alexander Elder

The three M's (Mind, Method, Money) is essential when it comes time to managing our trades and achieving success in the market.


Come into My Trading Room provides many valuable lessons for all types of traders.

11 - The Disciplined Trader by Mark Douglas

This is the first book by Mark Douglas, and it helps develop Winning Attitudes. It is an excellent guide for anyone who wants to become a trader.


This book was published in 1990, yet the lessons still apply in the current world. It perfectly compliments Trading in the Zone as a guide to understanding the psychology of self-discipline and the personal transformation to become a successful trader.


The Disciplined Trader by Mark Douglas

The Disciplined Trader is a must-read book if you struggle to control your emotions while trading.

12 - The Daily Trading Coach by Dr. Brett N.Steenbarger

This is another book by Dr. Brett n. Steenbarger, so he needs no further introduction. He is an active trader and coach for hedge funds and props trading groups.


This book was published in 2009 and provides 101 practical, clear instructions and daily assignments to work on your psychology.


The Daily Trading Coach by Dr. Brett N.Steenbarger

The Daily Trading Coach contains insights from 18 successful traders who share their work online. It offers a range of methods to change problematic attitudes, such as psychodynamic therapy and cognitive behavioral therapy for fixing bad habits.

13 - Sway: The Irresistible Pull of Irrational Behaviour by Ori Brafman & Rom Brafman

This book is not directly related to trading. But it presents an exciting journey into the hidden psychological effects that control our decision-making. Sway will definitely change the way you think about the way you think.


This book takes traders on a journey through social psychology, behavioral economics, and organizational behavior to discover how these dynamic forces affect every aspect of our personal lives.


Why is it so hard for anyone to get out of a losing trade? What are traders really feeling when they stay with an imperfect strategy long after others have left due only because their minds wander or fear kicks in.


Sway: The Irresistible Pull of Irrational Behaviour by Ori Brafman & Rom Brafman

The authors take on some of the most common problems in trading and offer insights that can help you avoid them.


Sway also teaches about loss aversion, which causes us to go to great lengths to avoid perceived losses; The diagnosis bias prevents us from reevaluating initial diagnoses for people or situations we haven't fully understood yet but want too much anyway.

14 - Atomic Habits by James Clear

The author of this book is so confident in its methods that he believes they can change your life. Even for those not interested or ready to make significant changes, there's still much worth learning from reading about what habits work best and how we form them with such certainty.