15 Most Important Books to Improve Your Trading Psychology in Stock Market
Updated: Dec 13, 2022
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.
Book 2 - Reminiscences of a Stock Operator
Book 5 - Trading Psychology 2.0
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 15 - The Psychology of Money
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.
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.
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.
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.
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.
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.