Top 3 Trading Books for Beginners (My Favourites)

Do you get to feel like you’re on an emotional rollercoaster when you begin a trade? Fear, greed, hope – they’re like your best friends. They just keep on coming when you’re about to make a choice. But trading isn’t all about looking at the numbers and charts. No, it’s a lot more about what’s on top of your neck. Can you believe that your state of mind and psychology account for 80% of trading success and just 20% is left for technical skills?

Now, you may ask, how are you ever going to train your trading psychology? Do you need to spend a fortune on top-tier psychology courses? Nah, that’s not necessary. A much more straightforward and accessible way exists: books. Books contain a treasure trove of information received from traders who have faced both positive and adverse situations firsthand . And the best part? Those books will not cost you an arm and a leg.

These trading books are where trading legends reveal their experiences, insights, and lessons learned from the market battlefields. And believe me, even a small percentage of their knowledge will change up your trading game more than you can imagine. Therefore, if you want to upgrade your trading journey, you are in the right place . In this post, I reveal the top 3 Trading books for beginners. Ready? Here we go!

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Table of Contents

3 Best Trading Books for Beginners

1] Trading in the Zone

“Trading in the Zone” written by Mark Douglas is a book that looks at trading psychology and its impact on traders’ success. The importance of having a winning mindset when it comes to trading is the major focal point in this book. This entails overcoming fear as well as self-doubt, recognizing emotional triggers which can cause bad decision making and adopting a disciplined approach to trading which should be followed consistently.

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The book examines successful trading psychology, showing how important mental discipline is during trades. It offers true stories from real life experiences together with applicable strategies for maneuvering through market difficulties without losing one’s nerve.

Since 1982, author Mark Douglas has been teaching people about the psychology of trading; he has dealt with more than one thousand traders and recorded what good ones do compared to bad ones .

This book doesn’t deal with things like charts or setups – it’s not about nuts and bolts of specific trades. Rather, intangibles are discussed: mentalities involved in making money through trade activities; feelings that come up before placing trades etcetera .

The idea behind it is to demonstrate that extra analysis won’t cure ignorance or lack of training; instead one needs to get into an optimum state of mind . Probability thinking, dealing with losses and our minds’ biases that don’t fit well with the market according to Douglas are some other topics he touches on.

Also Read- What is Swing Trading in Hindi?

2] The Disciplined Trader

Mark Douglas’ book, “The Disciplined Trader,” is about psychology in trade. It also focuses on self-discipline as a key factor towards success in the markets. According to this book; one must have psychological discipline to follow through his or her trading system even when it seems not working during volatile times when emotions run high.

To illustrate how emotions can ruin trading performance; the writer uses his experience as a trader and ideas from psychologists who came before him. He identifies emotional mistakes traders make such as revengeful trades, overtrading, FOMO (fear of missing out) and greed among others. Douglas states that these challenges driven by feeling can only be overcome through establishing strong personal discipline which includes clear planning for every trade entered into and adhering to it , being able to identify what triggers ones own emotions are in relation with trading situations then learning how best manage them.

This approach contributes greatly towards developing such self-control necessary for success according the author of The Disciplined Trader. In addition, he suggests some ways on how this may be accomplished practically like knowing that markets are impersonal entities which cannot be controlled but actions taken by individuals themselves alone can be controlled therefore need solidifying consistent profitability through having discipline coupled with good plan while also being self-aware enough so as not let our feelings dictate us rather than we doing so ourselves always .

3] The Pyschology of Money

The book “The Psychology of Money” written by Morgan Housel is about the relationship between personal experiences, emotions and financial decisions. This book studies why these factors affect our financial behavior as well as what we do with money. It goes against the belief that being knowledgeable about money leads to wealth creation; instead it points out that individuals should know their own background stories, biases and feelings towards savings.

There are 19 short stories in this book which act as illustrations for different ways of thinking about wealth. These tales give insights into psychological aspects of making financial choices including luck and emotions like greed or fear.

Another thing covered by the author within his work is awareness of luck’s contribution to success financially and how often it gets underestimated or overestimated. What one can learn from reading such literature therefore is not only understanding money matters but also managing our emotional reactions when dealing with them.

The book shows that we have to know our own prejudices and passionate answers towards fiscal areas since they can greatly influence our financial judgments. Additionally, it defines “financial freedom” as not only about being rich but also being able to manage time and select according to personal principles.