Here are some of the books that have helped me with obtaining the correct mindset needed for trading. Once you have that mindset it is worth remembering that it is perishable which is why I will regularly go back to these books as a refresher and as a way to keep my psychological approach to the markets in check.
Click on a book to purchase.
Trading In The Zone
Mark Douglas uncovers the underlying reasons for lack of consistency and helps traders overcome the ingrained mental habits that cost them money. He takes on the myths of the market and exposes them one by one teaching traders to look beyond random outcomes, to understand the true realities of risk, and to be comfortable with the "probabilities" of market movement that governs all market speculation.
The Disciplined Trader
The first book from Mark Douglas. Successful trading is 80% psychological and 20% methodological. Emotion is the enemy of successful trades. That's why, even with a modest knowledge of fundamental and technical information, the trader who is in psychological control will be the winner in the trading environment.
The Inner Game of Tennis
The Harvard English major W. Timothy Gallwey wrote The Inner Game of Tennis in 1972. A million copies later, its ideas are still some of the most influential in sports — and beyond, taken seriously by actors, politicians, and even sex researchers. What's its secret? Maybe that there is no secret.
What I Learned Losing a Million Dollars
Jim Paul's meteoric rise took him from a small town in Northern Kentucky to governor of the Chicago Mercantile Exchange, yet he lost it all-his fortune, his reputation, and his job. In this honest, frank analysis, Paul and Brendan Moynihan examine the psychological factors. It begins with the unbroken string of successes that helped Paul achieve a jet-setting lifestyle and land a key spot with the Chicago Mercantile Exchange. It describes the circumstances leading to Paul's $1.6 million loss and the essential lessons he learned from it.
Susan David has found that emotionally agile people experience the same stresses and setbacks as anyone else. The difference is the emotionally agile know how to unhook themselves from unhelpful patterns, and how to create values-based success with better habits and behaviours. Although not aimed specifically at traders, Susan David's observations can be applied to the way that we approach the markets in our quest for understanding our own psychology.
Jocko Willink and Leif Babin's experience and time as U.S. Navy SEAL's demonstrate how the SEAL approach to leadership that made them successful soldiers can help countless organisations and individuals achieve the highest level of success. Take it upon yourself to push harder and improve. Check The Ego. Operate with a high degree of humility by admitting mistakes and taking responsibility. Exactly some of the elements needed in becoming a successful trader.
The Magic Of Thinking Big
First published in 1959, David J Schwartz's classic teachings are as powerful today as they were then. Practical, empowering and hugely engaging, this book will not only inspire you, it will give you the tools to change your life for the better, starting from now. His step-by-step approach will show you how to: Defeat disbelief and the negative power it creates, make your mind produce positive thoughts, plan a concrete success-building programme, do more and do it better by turning on your creative power and capitalise on the power of NOW
The Power Of Now
Each and every moment in the market is completely unique which is why we should not trade on what has been and gone, nor on a prediction of the future. We should be in the moment. In the now. To make the journey into the Now we will need to leave our analytical mind and its falsely created self, the ego, behind. Eckhart Tolle uses simple language and an easy question and answer format to guide us to understand what being in the now really means and how to achieve it.
Jack D. Schwager's Market Wizards is one of the most fascinating books ever written about Wall Street. With the likes of: Bruce Kovner, Richard Dennis, Paul Tudor Jones, Michel Steinhardt, Ed Seykota, Marty Schwartz and Tom Baldwin being interviewed it helped me understand that the criteria that we use to trade, is the least important element. It made me look more towards risk management and even more so, the psychological aspect of trading.
Michael Covel dives headfirst into trend following strategy to examine the risks, benefits, people, and systems. This latest edition has been revised and extended, with 7 brand new interviews. Although I am not a trend trader myself, this book describes that by applying straightforward and repeatable rules, and with a good psychological approach, anyone can learn to make money in the markets.
The Complete Turtle Trader
This is the true story behind Wall Street legend Richard Dennis, his disciples, the Turtles, and the trading techniques that made them millionaires. Michael Covel tells their riveting story with the first ever on the record interviews with individual Turtles. He describes how Dennis interviewed and selected his students, details their education and experiences while working for him, and breaks down the Turtle system and rules in full. He reveals how they made astounding fortunes, and follows their lives from the original experiment to the present day.