Best Books to Read to Learn Forex Trading


Top Books On Forex Trading Psychology

Forex trading psychology

is a big topic. It covers a wide variety of topics related to our personality.

If we don’t get our

trading psychology

right, it can be harmful and negatively affect how we

trade
.

While the technical side of

trading

is complex, it can be learnt and rarely changes.

Arguably, it is even harder to know ourselves
.

Forex Trading psychology,

however, is not the only thing you should focus on.


You also need to understand how to use both fundamental and technical analysis

.

You should also be careful when reading forex

trading books on psychology
.

Don’t get swept away by how they motivate you to be more positive, you should look for lessons that you can implement in your

trading

plan

.

Want to learn how to

trade forex

like a pro? Take our

forex trading

course

!

Top 10 books on Forex trading Psychology

Here’s our list. Make sure you get them all and start learning!

1. High Performance Trading: 35 Practical Strategies and Techniques to Enhance Your Trading Psychology and Performance

Find it on Amazon>>high performance trading book cover

High Performance

Trading

is written by Steve Ward who also has other

books

on motivation which are highly useful for

forex traders

who want to boost their confidence.

The

book

has great reviews on Amazon and is largely orientated to people who want to become day

traders
.

It is also

great for stopping people from making mistakes
, which is arguably more important than making money.

The

book

is well-written and easy to read, the perfect start to diving into

forex trading psychology
.

It is a great place to start when setting out to understand

trading psychology
.

2. The Essence of Trading Psychology In One Skill

Find it on Amazon>>the essence of trading psychology book cover

This

book

is by

trader

Yvan Byeajee and is perfect for outlining many of the pitfalls

traders

fall into related to

trading psychology
.

One of the key things

Byeajee advises is meditation
, which is also advised by several other writers on this list.

He says it helps him get his head into the right place and supposedly does so before starting to

trade
.

The

book

is also a

quick read

and is light on fluff or any information the reader will not need.

Byeajee went from being a losing

trader

to a successful one by actively charting how he

trades

and it is something he talks about in his

book
.

3. Market Mind Games: A Radical Psychology of Investing, Trading and Risk

Find it on Amazon>>
Market Mind Games book cover

Market Mind Games is written by Denise Shull and is written as fiction, an interesting way to explore

trading psychology

that is rarely done.

The key lesson to take away from this forex trading book is that
you need to watch your emotions at all times.

While it is useful to know about how to react in difficult situations, identifying them too late is not effective enough.

You need to be active in spotting them
.

Being constantly aware of your emotions is one of the hardest things any

trader

can do, and in some senses is the first step to conquering their mentality.

Read:  How to Invest in Forex Trading

Shull also teaches us that

our

trading

practices and private lives are linked

. What happens to us at home will affect how we

trade

and vice versa.

That’s why it is important to observe them at all times.


4. Trade


Mindfully: Achieve Your Optimum Trading Performance with Mindfulness and Cutting-Edge Psychology

Find it on Amazon>>
Trade Mindfully Book Cover

Written by Dr Gary Dayton, this forex trading

book

is a great combination of different previous works by other

traders

and authors on

trading psychology
.

He is also a

psychologist

and has been

trading

since 1999 –


that’s 20 years of experience


– and also teaches

traders

important techniques.

Trade

Mindfully is perfect for

a solid overview of different ideas
, helping to put them together in a logical way.

One of the primary things the

book

teaches is that you should

accept your emotions, not battle against them or allow yourself to be trapped by them
.

The

book

is full of useful tips and exercises to help you stay in control and work on your ‘


mindfulness

’.

Some of the most useful things the

book

teaches is how to meditate and how it can be useful to

traders
, and how to get out of a

trading

slump.

5. How to Day Trade for a Living: A Beginner’s Guide to Trading Tools and Tactics, Money Management, Discipline and Trading Psychology

Find it on Amazon>>How to Day Trade for a Living book cover

Andrew Aziz is a very well-known

trader

and

the

book

is aimed more at day

traders
, though that doesn’t mean his techniques are not applicable to swing

traders
.

Trained as a chemical engineer and worked as a research scientist. After losing his job, he decided to take up

trading
.

In the overview of the

book
, he talks about how when he first started

trading

he got lucky and made $6,000 on one of his first

trades
.

He then proceeded to lose it all on a series of bad

trades

with the money he made.

Aziz preaches the importance of having a good morning routine before the market opens
, saying waking up 15 minutes before and slapping water on your face is not enough.

For Aziz, he must wake up early, go for a run, have a shower and eat breakfast all before the market opens or he will not feel mentally prepared.

You can also follow Aziz on


Bear Bull



Traders


on

YouTube
.

6. The Psychology of Trading: Tools and Techniques for Minding the Markets

Find it on Amazon>>
The Psychology of Trading book cover

The

Psychology Of Trading

is written by Brett N. Steenbarger PhD an Associate Professor of Psychiatry and Behavioral Sciences at SUNY Upstate Medical University in Syracuse, New York.

He specialises in


brief psychology


and explains practical concepts for

trading
, combining both worlds effectively.

This forex trading book isn’t just about

trading psychology
,

it also integrates a lot of real psychological practices
, not just techniques to help you

trade

better.

Steenbarger, like Aziz, also

advises exercise in the mornings

to get you mentally prepared to

trade
.

Read:  Best Way to Learn Forex Trading

He also explains that we are not just one personality, we are actually made up of a combination of personalities and we need to become an ‘observer’ and identify what personality is in control.

Traders

should also check out his other forex trading

books
, which include:


  • The Daily

    Trading

    Coach: 101 Lessons for Becoming Your Own

    Trading Psychologist
    .
  • Trading Psychology

    2.0: From Best Practices to Best Processes
  • A

    Trader
    ‘s Guide to Self-Discipline: Proven Techniques to Improve

    Trading

    Profits

Steenbarger also has a blog called

Trader
Feed
, a great place to pick up

trading

tips.


7. The New


Trading for a Living: Psychology, Discipline, Trading Tools and Systems, Risk Control, Trade Management

Find it on Amazon>>
The New Trading for a Living book cover

The New

Trading

for a Living was written by Alexander Elder, another

trader

with experience as a

psychologist

and is the updated version of the older

book
.

Elder originally

trained as a

psychologist

before learning how to

trade
, which makes him more reliable to listen to than most other

traders

who write on the topic.

He teaches

a calm, disciplined approach to

trading
, to move

traders

way from making irrational and unplanned decisions.

The

book

has an excellent section on

risk management
, one of the most important things

traders

need to get right when they start out

Trading

for a Living is also


best suited for swing

traders
, though there are some key techniques day

traders

can take from the

book

as well.

It also offers many practical tips and is for

traders

who want to set

realistic goals
.

8. Reminisces of A Stock Operator

Find it on Amazon>>Reminiscences of a Stock Operator book cover

Reminisces of A Stock Operator is supposedly

based on the life of famous

trader

Jesse Livermore

, and was written by Edwin Lefèvre.

Lefèvre was at one point a stockbroker and financial writer

and led an exciting life under numerous roles. At one point he was the ambassador to Spain and Italy for Panama.

Livermore was one of the most successful and unsuccessful

traders

that ever lived, amassing a fortune before losing it all and then regaining it several times.

The

book

was written originally as a series of 12 articles in


The Saturday Evening Post


and is great for understanding

crowd

psychology

and market timing

, something Livermore mastered.

There are many lessons to learn about how the market works.

Livermore was one of the first people to realise that

there is nothing new in the market
, everything that has happened will happen again.

The market works in cycles

and repeats itself. There is nothing new in

trading
.

9. Market Wizards: Interviews with Top Traders

Find it on Amazon>>Market Wizards book cover

Written by Jack Schwager, Market Wizards is by far one of the most well-known

books on trading

ever written.

Throughout the

book
, Schwager

interviews different

traders

on their strategies and it is perhaps the best

book

to get an insight into how some of the most famous

traders

think.

With this

book, forex traders

can learn to get in the mind of successful

traders

and learn to think like them.

Read:  Can You Trade Forex Over the Weekend

He also wrote many other

books

interviewing

traders

in different specialties, including:


  • Market Wizards: Interviews with Top

    Traders
  • The New Market Wizards: Conversations with America’s Top

    Traders
  • Stock Market Wizards: Interviews with America’s Top Stock

    Traders
  • Hedge Fund Market Wizards: How Winning

    Traders

    Win
  • The Little

    Book

    of Market Wizards: Lessons from the Greatest

    Traders

    (Little

    Books
    . Big Profits)

One thing that Schwager has noted before is that some technical

traders

dislike fundamental

trading
, and vice versa.

They don’t believe in the other type of

trading
. However, both are successful, highlighting the fact that

traders

need to find what works for them.

Another vital thing Schwager points out is that

it is more important not to lose money than to make money
.

10. Trading In The Zone: Master the Market with Confidence, Discipline and a Winning Attitude

Find it on Amazon>>Trading in the zone book cover

Trading

in the Zone is written by Mark Douglas, and

many

traders

refer to it as the

trading psychology

bible

.

Mark Douglas was an experienced

trader

and brought to the table a number of things

traders

need to consider about their mentality when

trading
.

One of the most significant being

how as a child, the way in which we cope with loss and failure affects how

traders

deal with it as they get older

.

Further to that, it can teach

traders

useful skills to overcome these issues and make better

trades
.

Douglas also wrote many other

books on trading psychology
. Here are some others you can look into:


  • The Disciplined

    Trader
  • Little

    Book of Trading

    Performance
  • Simple Wisdom for Prosperous

    Trading

While most of his

books

cover

trading mentality
,

Trading

in the Zone is perhaps Douglas’s best work. It won him numerous awards, including the Bull/Bear award in 2006, 2008, 2011, 2015 and 2017.

If you want to learn more about Mark Douglas and


Trading



In The Zone


, you can read this article

here

where we covered the topic extensively.

Key points

If you remember anything from this article make it these key points.

  • Forex trading psychology

    is vital to get right to

    trade

    effectively

    . Not having the right mentality can lead you to make poor

    trading

    decisions.
  • Fundamental and technical analysis are also important
    .

    Traders

    shouldn’t overlook understanding them, they should work alongside

    trading psychology
    .
  • Forex trading psychology

    is also important for your regular life

    . They are connected and affect one another.
  • Forex trading books

    are a great place to start, but experience is also important

    . At some point, you have to put the

    books

    down and start

    trading
    .

Learn forex trading psychology with our forex trading course

Want to learn more about

forex

and how to

trade
? Then sign up to our

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course

!

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10 Books On Forex Trading Psychology
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Best Books to Read to Learn Forex Trading

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