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 Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Productivity and innovation have never been more importantAs the world economy hits physical limits and central banks tighten their belts, could equities be facing a 10-15% downside?
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.