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| Trading Psychology Books and Articles|
USA: GA, Lawrenceville
|I've listed several great books that are partly or fully devoted to Trading Psychology ... included in my recommendations list here: http://tradetight.org/forums/thread-view.asp?tid=220&start=1 |
Later comment (Oct 2013):
In the past 2-3 years or so, Van Tharp who IS a psychologist, has in my opinion in his more recent books (eg "Matrix") and courses and web postings gone a bit too mystical for my taste. Lots of self-actualization stuff, etc. You may or may not find that info helpful to you in your life, but I don't believe it's a necessity for trading, as much as the other things he taught earlier. So ... please consider my Van Tharp recommendations still to be strong, but only for the "legacy" pre "spiritual" writings. JMHO, FWIW
USA: NC, Wilmington
|The stuff from this lady is great. She's one of the 'neuro linguistic programmer' types. She's very well thought of in the prop trading arena. |
***Ms. Roosevelt authored three books about the psychology of successful trading: "Exceptional Trading: The Mind Game" (Traders Press, 1999), "12 Habitudes of Highly Successful Traders" (Traders Press, 2001), and "Overcoming Seven Deadly Sins of Trading" (Traders Press, 2003). Dozens of her articles have been published in numerous trading magazines. She is a frequent contributor to Technical Analysis of Stocks and Commodities***
We had a guy in house that would interview us and create hypnosis recordings. They also employed a kind of self administered kind of acupuncture with no needles created by the guy on this link. Believe it or not it really makes a difference.
My own experience has made one thing CRYSTAL CLEAR!! Scared money gets killed big every single time.
USA: MD, Columbia
|Below are recommended interesting easy read, some interesting psychological finds of self-discovery to trading: |
Review of the book:
Link to author's website:
Mind over Money: Overcoming the Money Disorders That Threaten Our Financial Health
The Financial Wisdom of Ebenezer Scrooge
|I know this is an area that you, Jim, and I share as an area of interest. I agree with your assessment of the recent Thorpe work....too mystical. I noticed in the last few years he has moved in that direction. With a degree in psychology I was especially interested in this subject and have quite a few books in the area. |
Probably the best known and most widely accepted are written by Mark Douglas. His first book "The Disciplined Trader" is considered a classic. He also wrote " Trading in the Zone".
Another highly respected author in the field is Brett Steenbarger. He is a practicing psychologist. I have two books by him, "The Psychology of Trading" and "Enhancing Trader Performance".
Another book by a psychology professional is "Inside the Investor's Brain" by Richard L. Peterson MD. He's a psychiatrist. He relies heavily on scientific research into the brain and investing...what winning and losing does to the brain, risk aversion, fear, etc. Although he is a former trader, the book is broader, about money and investing in general, not totally focused on trading per se.
If you really want to dig into your past try "Mindful Trading: Master Your Emotions and the Inner Game" by J. Rande Howell. He talks a lot about fear ... "we have seen the enemy and he is us - Pogo". I bought this book directly from him at the Traders Expo in Las Vegas. I believe fear is the number one problem with traders.
One of the most recent books is "The Mental Edge in Trading" by Jason Williams, MD - Larry Williams son. He's also a psychiatrist. He matches personality traits from the NEO-AC personality test against great traders like his father, Linda Raschke, Ralph Vince, Dan Zanger and others. This is most helpful if you can also take the test. I took a free version of the test on line.
The earlier Tharp books, although not specifically on psychology are excellent. I especially like "Super Trader"
Other, older, books that might be considered:
" The Inner Game of Trading" by Robert Koppel and Howard Abell.
"The Way of the Warrior Trader " by Richard D. McCall
"MindTraps - Mastering the Inner World of Investing" by Roland Barach (Van Tharp in a review in Amazon calls it a "must" for any serious investor")
I also have the Roosevelt book.
Which is best....sorry...this area is very individual. I would look at the book reviews and see what seems to strike a chord with you.
By the way, general "achievement/success" type books, even though not specifically about investing are very valuable. I think one of the best is "Success Principles" by Jack Canfield (of Chicken Soup for the Soul fame).
USA: FL, Bradenton
|To my way of thinking, the two best books on psychology for traders are books that contain actual research based psychological information. Way ahead of whatever out there is in second place. |
"Thinking Fast and Slow" by David Kahneman.
Kahneman is a psychologist who won the Nobel prize in Economics for Prospect Theory, which created the study of Behavioral economics and put another nail in the coffin of the Efficient Market Hypothesis. Chock full of readable information about why decision making goes wrong, and for traders, why your intuition is worse than useless when it comes to trading. Will get you into the mechanical approach to trading if anything will.
"Evidence-Based Technical Analysis" by David Aronson
For those who want to avoid the abundance of nonsense written about technical analysis, this is a gem. The first 150 pages are a summary of cognitive psychology applied to trading, and the rest is a tutorial on how to use statistics and backtesting to avoid being fooled.
Edited by MelDickover 10/29/2013 8:35 AM
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