Top 5 Books about Trading Psychology & Behavioural Finance
Summary: Reading is one of the best ways to improve as a trader and investor. Below, you will find five recommendations of books that explore how psychology works in trading and investing.
Trading in the Zone by Mark Douglas
Trading in the Zone by Mark Douglas explores why investors take shortcuts in the market and why greed and fear have such an incredible hold over individuals. Douglas also provides solutions for how to prevent these issues from happening.
The Investor’s Quotient by Jake Bernstein
In this classic, author Jake Bernstein explores why investors fail because of their emotions and psychology. Bernstein also provides strategies and tactics for preventing and dealing with emotionally driven issues.
Loaded: Money, Psychology, and How To Get Ahead Without Leaving Your Values Behind by Sarah Newcomb
Sarah Newcomb is a Morningstar behavioural economist and her book is based on years of research. Loaded offers an insightful guide for recognizing harmful core beliefs about money and what we can do to challenge and overcome these negative mindsets.
Beyond Greed and Fear by Hersh Shefrin
This book takes a deep dive into what guides the decision-making process, to help us understand the human psychology that influences financial strategy, stock selection, and the universal impulse to avoid risk and costly mistakes.
Reminiscences of a Stock Operator by Edwin Lefevre
This updated classic explores the trading career of Jesse Livermore from childhood to becoming a Wall Street legend. It explores his strategies on what stocks to buy and when, as well as the psychology of trading.
Latest Market Insights
Quarterly Outlook Q3 2022: The Runaway Train
- Central banks' attempts to kill inflation is a paradigm shift, which could end in a deep recession.
Tangible assets and profitable growth are the winnersWith US equities officially in a bear market, the big question is where and when is the bottom in the current drawdown?
Understanding the lack of investment appetite among oil majorsThe everything rally seen in recent quarters has become more uneven, as its strength is driven by commodities in short supply.
The pressure is on as the wind leaves the sailsWith cryptocurrencies in sharp decline, are we entering a crypto winter or is the bear market a healthy clean-up of the crypto space?
Why the Fed can never catch up and what turns the US dollar lower?Many other central banks are set to eventually outpace the Fed in hiking rates, taking their real interest rates to levels higher than the Fed will achieve.
Bank of Japan: Swimming against the tideThe Japanese economy has gone from the age of deflation to rapidly rising prices in no time, leaving the Bank of Japan in a pickle.
Green transformation detour and bear market hibernationWith the impending risk of global econonomic derailment, we share the five things investors need to consider in this new half year.
Crisis redux for the eurozone?Whether there's going to be a recession in Europe or not, the path towards a stable economy will be agonizing.
Technical Outlook: Gold, Oil and a remarkable multi-decade perspective on EquitiesThe Nasdaq bubble pattern, USDJPY resistance, crude oil uptrend losing steam and the technical outlook for USD.
China: the train of new development paradigm left the station two years agoChina is transiting to a new development paradigm, as they are hit by deteriorating terms of trade, a slower global economy and an uncertain future while continuing attempts to contain the pandemic.