10 Best Trading Psychology Books of All Time

It also goes into depth about his personal life which is a nice change from some of the other books that are written about trading. If you want more of an entertaining read rather than a book full of definitions and statistics, this is a great choice. It’s a lighter read and can get you into reading trade books since this one is a little more lighthearted while still being informative. Overall, this book is important for beginners who want to get into the world of trading.

Designed as a complete education, the book covers everything you need to know to start investing in stocks. Fundamental analysis, technical analysis, stock screening, risk management, and psychology are all covered. I like how you listed what you liked and didn’t like about the books.

Following the Trend: Diversified Managed Futures Trading

This book benefits traders ready to move beyond guesswork and develop a disciplined, mathematically grounded approach to the market. Chapters on trading psychology add depth, helping you understand the mental game behind consistent performance. Jack Schwager’s decades of experience as a hedge fund manager and futures research director led him to compile interviews revealing how top stock traders outperformed the market during volatile times.

But, I like your own reports better because they are simple and straightforward and easy to read or watch, and they offer good practical advice for the smaller retail trader. Rayner, I am in the middle of reading “Trade Mindfully” by Dr. Gary Dayton a Very book dealing with the mindset of a trader. Technical Analysis of the futures markets , Market Wizards, and Reminiscences of a Stock Operator. If you’re not familiar with price action trading, then this book will open a whole new world to you. Because this book focuses solely on price action trading and is written by Bob Volman, an independent forex trader. In this book, he talks about the key ingredients to successful trading, why some traders succeed whereas others fail, and how to find the “correct” stocks to trade.

#6 – Reminiscences of a Stock Operator

Denise Shull is a performance coach who uses neuroeconomics and modern psychoanalysis in her work with hedge funds and professional athletes to guide and mentor them in the quest of improving their game. In other words, she helps multi-millionaire traders and athletes make better decisions under pressure. It’s one of the first books I read on the subject of trading psychology, and it opened my eyes to the “secret” behind trading success. You also need to have the right attitude towards yourself and towards the markets in order to succeed.

Each of these books brings a unique lens to the emotional side of investing — whether through hands-on tools, behavioural science, or timeless storytelling. Whichever one you choose to begin with, you’ll be taking an important step toward building a more grounded, resilient, and effective mindset. Shefrin addresses how emotions and mental shortcuts influence everything from risk tolerance to portfolio construction — and what can be done to counteract these tendencies. It’s an excellent resource for investors seeking to bridge the gap between economic theory and behavioural reality. Newcomb encourages readers to examine their personal “money story” — the internalised beliefs and emotional associations that often shape our financial behaviour.

The Secrets, Rules & Blunt Truths of a Stock Market Wizard

• The key takeaway from reading this book is that there are thousands of ways to make money in the markets – the secret to success is finding out which way works for you.
• If you want to geek out about price action trends, this THE book to read.
• This book explains the Trend Following methodology backed by real evidence based on actual results.
• Denise Shull is a performance coach who uses neuroeconomics and modern psychoanalysis in her work with hedge funds and professional athletes to guide and mentor them in the quest of improving their game.
• If you want to move beyond generic advice and understand proven techniques from history’s great traders, this book is tailored for you, though it demands your commitment to absorb these nuanced lessons.

A detailed look at what works and what doesn’t in technical analysis. In my opinion, this book is a gem as Adam Grimes has done all the hard work for you. He has backtested different chart patterns so you know which ones give you an edge in the markets, and which doesn’t. There’s no exact strategy to get you started and you must dig further from other sources/books. But for that kind of returns, you need to swallow the occasional drawdown of 50% or more.

The Proven Stock Market Formula

The book begins by explaining the basics of technical analysis, including price charts, trendlines, and momentum indicators. Since it’s a short and educational read, many people read it several times over the course of their careers in the stock market. This is why it’s such a common book amongst traders and why they normally refer this book to friends who need a trading book. It’s the biography of Jesse Livermore who is one of the most famous traders of all time. He made headway on the financial markets and started educating others on how to make stock market predictions. When starting or advancing in your investing journey, there is no shortage of perspectives on how you should invest or in what you should invest.

Listening to books on your way to work is a great way to leverage your time by doing two things at once. This book blends narrative with enduring wisdom and is a favourite among both new and seasoned investors. This may reflect the financial or other circumstances of the individual or it may reflect some other consideration. Customers of TWP programs and consumers of its content should take this into account when evaluating the information provided or the opinion being expressed. Murphy’s in-depth explanations have significantly enhanced my ability to interpret complex market data and make more informed trading decisions. Taleb reveals how cognitive biases like hindsight bias can cause an investor to misinterpret success.

Wealth creation and investing insights

This book suits anyone eager to understand real-world applications of stock trading principles through firsthand accounts, especially those looking to refine their approach with tested strategies. The final chapter’s 65 distilled lessons offer a valuable checklist to sharpen your trading discipline and decision-making. M. Minervini is one of the most successful traders and investors in the USA, with 30 years of experience in speculative markets. His book is a great practical manual on how to implement technical analysis in real life.

• This book contains interviews with successful traders and it’s one of the most recommended books in the trading business.
• Some take an online course, a private mentor or decide to set a predetermined budget they can afford to lose in order to learn how to trade.
• Dave Asprey has interviewed hundreds of successful people on his podcast and he distills his findings in this book.

Despite the wide breadth of knowledge, the book is very approachable and easy to understand for novice traders. This book is an excellent starting point for novice traders that covers every major topic in technical analysis. In addition to covering chart patterns and technical indicators, the book takes a look at how to choose entry and exit points, developing trading systems, and developing a plan for successful trading. These are all key elements to becoming a successful trader and there aren’t many books that combine all of this advice into a single book. Consider Timothy Sykes, who turned a modest $12,000 into millions by focusing on penny stocks and hedge fund tactics.

Discover more in-depth insights, entrepreneurial advice and winning strategies that can propel your journey forward and save you from making costly mistakes. Investors who wish to learn how to value and pick investments, according to value investing principles. Mandelbrot’s theory contradicts conventional wisdom on markets and therefore is useful to understand, especially when anticipating market chaos. Investors who wish to become better at stock picking using their everyday knowledge. Investors who wish to better understand the behavior of markets and speculation.

You gain insight into Livermore’s uncanny ability to predict market breaks and O’Neil’s disciplined CANSLIM approach, among others, learning how these methods apply even in today’s rapid markets. This isn’t a broad overview but a focused exploration of concrete best trading books of all time tactics that shaped some of the most remarkable trading careers. If you want to move beyond generic advice and understand proven techniques from history’s great traders, this book is tailored for you, though it demands your commitment to absorb these nuanced lessons.

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This intriguing memoir showcases how Thorp leveraged mathematical formulas to beat the market and probability and multiple strategies to beat the house at casinos. Thorp is a fascinating person and author who shares fascinating stories like how he employed the first wearable computer to great success when playing roulette. Much more than breaking news, our diverse reporting digs deeper with unparalleled insights that empower you to make better informed decisions.

This is one of the best books to learn the stock market or trading any market, for that matter. The trading strategies in this book strip away all of the trading indicators that are present in most other trading systems. A good trading book should also not have too many unrealistic ideas.

Mohammed