5 Trading Psychology Books You Should Read before You Join the Big League





A trader’s mindset or psychological presence is extremely important towards their progress and decision making. Take especially stock trading for instance, this requires a trader to maintain a lot of discipline and dedication to achieve some sort of profitability. Trading also requires presence of mind at any given point of time. A trader is frequently exposed to situations where one is compelled to take on the spot decisions.

This requires you to build a psych in order to make sure you are on top of the game. With markets being as volatile as they are today, even a minute lapse of concentration can lead to a suffering huge losses on some occasions.

For new traders or beginners it is advisable to read some very valuable information providing books on building a psychology to be a successful trader. These don’t guarantee you any profit but helps you instead to build a mindset of a successful trader (which is by far even more important).


Top 5 Trading Books you should read to help you get into traders mindset:


1. The Education of a Speculator


This book is written by Victor Niederhoffer who is a hedge fund manager, stock market statistician and an acclaimed author. His book is a storey of his very trading attributes. The book gives us insights on how a Mr. Niederhoffer’s used his mind and soul to function in his strategy generating process. This sheds light of the positives of human psychology and helps us to penetrate into the mind of one of the world’s most controversial traders.

You can be a Stock Market Genius

2. You can be a Stock Market Genius

This is a lovely book written by Joel Greenblatt, who is a hedge fund manager, investor and a writer. His book helps us understand the importance of keeping the human psych restricted to a simple trading motto “KISS” (Keep It Simple Stupid). This book helps a trader to achieve profitability by taking advantage of market situations; spinoffs, following insiders, recaps, restructuring, mergers etc.


3. The Intelligent Investor


This is a book written by Benjamin Graham and was published in 1949. Mr. Graham was a stock analyst and his book helps us understanding his mind set and methodology in the process of stock selection. As a mark of appreciation for this book, none other than Warren Buffet claims this book is the best to be ever written. As the name suggests this book has inspired people all over the globe and is the finest in terms of how to develop your psychological mindset to be a trader.

4. Market Wizards: Interviews with Top Traders


As the name suggest the book written by Jack Schwager gives us tips and information on interviews with many top traders. The most interesting part of this book is the fact that it sheds limelight on the life of Jessy Livermore, who is regarded as one of the most successful traders in the equity markets. The book also contains some historic and morale boosting quotes that can help us peep into Great Minds and how they managed to overcome losses to make millions in return.

5. The Daily Trading Coach


Written by Brett Steenbager, this is very interesting reading choice. The best part of the book remains its element of motivation and its simplicity in understanding. As far as the book is concerned it applies to all sorts of traders whether they are beginners or seasoned traders. This book stresses the importance of self-learning and is very good for confidence building. This helps us understand on how to learn to get the best out of ourselves; this book is unique and a must read.

We all have a God Gifted Great Mind; there is no doubt that trading requires an element of luck. However reading an understanding the tricks of the trade from people who are considered the best in the business can only be beneficial.

These books provide a detailed insight of how some of these greats invested their funds and the psychological mindset they maintained in order to achieve their results. Reading some of their insights could only help you become a more confident trader.