Updated: Sep 26
What separates a winning trader from a losing trader is psychology.
Trading psychology, for those new to the subject, refers to the emotional aspects dictating a trader’s decisions. Irrespective of the trading plan employed, good psychology is a must-have trait for any trader. Learning to govern emotions and develop good decision-making skills will, unequivocally, improve trading performance and ultimately unlock the door to trading success.
Recognizing most traders fail to identify the importance behind the psychology of trading is, indisputably, one of the reasons for the high failure rate in this business.
Fortunately, several books are available to help confront this broad topic.
1. ‘The Daily Trading Coach’ by Brett N. Steenbarger (2009)
2. ‘The Disciplined Trader’ by Mark Douglas (1990)
3. ‘Trading in the Zone’ by Mark Douglas (2000)
4. ‘Trade Mindfully’ by Gary Dayton (2014)
5. ‘Reminiscences of a Stock Operator’ by Edwin Lefevre (1923)
Never stop learning!
Beyond keeping things fresh to sustain your creativity and passion, learning keeps you relevant in our ever-changing world.
No matter your current level, you’ll forever be a student in this business, be it day trading, swing trading or position trading. Thinking this way permits continual progression, keeping you one step ahead of the competition and bound for top-trader status.
Additional books that may interest you are: The New Market Wizards and Hedge Fund Market Wizards by Jack Schwager, Trade Your Way to Financial Freedom by Van K. Tharp, Trading Psychology 2.0: From Best Practices to Best Processes by Brett Steenbarger, Best Loser Wins by Tom Hougard, and Trading to Win by Ari Kiev.