Top 10 Best Trading Psychology Books

Psychological training, which allows you to control emotions and maintain endurance when trading in financial markets, is of great importance for each trader, regardless of his work experience. The ability to restrain oneself by observing rate fluctuations and significant world events should be developed no less actively than any other professional speculation skills.

The best books on the psychology of trading can help in this matter, and therefore, improve the trading results many times over. Consider the TOP 10 editions.

1st place – E. Nyman: Small Trading Encyclopedia

A fundamental work of literature in which a huge number of topics on the stock exchange are affected. An extremely useful book for both beginners and trading professionals, including, among other things, key questions in psychology.

Note that the Nyman encyclopedia was written many years ago. However, the valuable information in it has not lost its relevance. Getting started with the world of finance is still recommended with this book.

2nd place – B. Williams: Trade chaos

The author is sure that the theory of the “trading house” is justified and works effectively in real markets. Bill Williams fractals can be seen in most modern trading terminals. But opening orders on them is most often not effective.

Ambiguous work, which nevertheless allows one to understand the intricacies of the work of a trader, is much better than many other illustrious works. First of all, because the mechanisms of action of exchanges are examined here really deeply.

3rd place – A. Elder: Trading with Dr. Elder

Alex Elder is a famous psychiatrist practicing on financial exchanges. He published a huge number of books. But it was the indicated work that collected all of its most valuable achievements.

The first part of the fundamental work talks about how they feel and what worries sellers and buyers, how the education system of courses works. The second part tells about the common methods of work of traders. The third part is about how to make yourself not a lover, but a professional speculator.

4th place – A. Elder: How to play and win on the stock exchange?

The work is also divided into several parts. The first section identifies the basic concepts of psychology that all traders in financial markets should be familiar with:

  • The psychology of the crowd (human behavior in a group of people on the stock exchange);
  • Thinking and skills to earn;
  • Psychological problems and fears inherent in speculators;
  • Motives and motivations thanks to which people come to the world of trading.

The book of the “star” psychiatrist is also recommended for reading to traders with any level of knowledge.

5th place – A. Silvani: Beat the dealer in the FOREX market. Insider Look

An original piece about the Forex market. The book tells primarily about those topics of speculation with financial instruments that are most often ignored.

After reading the first chapters, many beginners will most likely assume that working on Forex is an extremely dangerous business, which even in the long term cannot become a source of income. But, as they move through the pages, even they will understand that it is really possible to make a profit on trading financial instruments and beat dealers with very specific methods.

6th place – D. Schwager: Wizards of the market. Interviews with TOP Traders

No specific trading strategies are considered in this motivating publication. The author names and gives the stories of the ten most prosperous merchants on the planet who were able to achieve incredible success in their work.

Special attention should be paid to an interview with Ed Seikota. In trading, he prefers to use algorithmic systems that have many significant differences from the price action. The personal and, at the same time, universal beliefs of Seikota are extremely valuable for speculators.

7th place – D. Cohen: Stock Market Psychology – fear, greed and panic

Cohen tries to prove that profitable stock market trading is impossible without understanding the psychology of the market itself. The author considers in full detail those issues that most analysts and experts in the world of trading simply ignore. We are talking about factors such as:

  • Excessive optimism;
  • Excessive fear of math;
  • Psychological fatigue and overload of information;
  • Greed.

Having got acquainted and at least partially understood the psychology of the investment mechanism, novice traders get the opportunity to save a deposit and start the trading process consciously, and not “for good luck”.

The publication contains several tests that allow you to set your own level of skills as a trader. Perhaps, having passed the test, you will understand that it is too early for you to draw up a real account, and opening a demo balance at this stage will be the best solution.

8th place – L. Tweed: Psychology of Finance

The work clearly shows how significant the psychological mood of the trader in his work on the stock market. Tweed talks about common “mind traps” that most speculators fall into.

Much attention is paid in the book to the so-called “crowd psychology” and how to get rid of and how to avoid the influence of this phenomenon. Examples of how to predict your earnings and make a profit, how to keep your mind “cold” even with sharp and large-scale market jumps are considered in practice.

9th place – N. N. Taleb: Fooled by chance

Nassim Taleb is a famous philosopher, trader and mathematician. The book is also considered controversial – it motivates someone for a long time, and drives someone into depression. After reading it, there is no one indifferent to it.

The main theme of the first part of the work is the significance of chance in trading and life. If you are sure that everything is under strict control, start reading “Fooled by Chance” right now. You will understand that, not taking into account the will of chance, you can pay dearly for your intellectual shortsightedness.

The second part of the book is more optimistic, and tells “About the hidden role of chance …”. And also about how to discern this chance and skillfully use it, wrapping it in your favor.

10th place – K. Fays: Trading based on intuition

A philosophical book that addresses the topic of one of the key conflicts of trading: which is more important and potentially more profitable – intuition or accurate calculation. According to the author himself, rely on intuition should certainly.

Face is sure that the human brain, which has accumulated some experience in the financial markets, is able to give better results than the most modern computer. After reading the book, you can understand whether intuition should always be trusted, and when to do it right.