The AlphaMind Blog SUBSCRIBE

The Alpha Mindset : 'It's Not The Markets We Overcome, It's Ourselves.'

AlphaMind Pages

MORE…

Books on Trader Mindset

There are thousands of books written about Financial Markets that provide a
great basis for knowledge and understanding of markets. However the
biggest challenge for most traders is not knowledge but mindset: The mental,
emotional and psychological aspects of trading and investing. 

Books on mindset related to trading are less abundant, though some of the
ones which have been written on this theme have becomes classics that
every trader will have heard of, if not at least read. 

We have constructed two lists of these books: List 1 refers to books which

are directly related to Financial markets. List 2 refers to non-Financial Market
books which help in developing Mindset and Mental Strength for the Financial
Market battles ahead.
 
List 1: Books on Mindset, Psychology and Performance
directly related to Financial Markets. 

Markets Wizards – Jack Schwager I recommend the entire series, but if you
don’t want to, at least read the first two. In my opinion reading Market Wizards
should be mandatory for all traders. Jack has a new version coming out later
this year, 'Unknown Market Wizards'. We have already had a sneak preview of
this latest edition, and you will not be disappointed. 

Reminiscences of a Stock Operator – Edwin Leferve If you’ve never read this,

you should - It remains the all time classic trading book and remains as
relevant as ever, almost a century after it was first written. - It is also now
available in audible form.

Trading in The Zone – Mark Douglas Many people refer to this as the Bible.
Douglas brilliantly analyses trading behaviours from a psychological
perspective and offers tips and ideas to reduce the negative impact of these.

The Disciplined Trader – Mark Douglas Less well known than the above, but
also a great book with many great insights and perspectives.

The Way of the Turtle – Curtis Faith In 1983, legendary commodity traders
Richard Dennis and William Eckhardt held an experiment to prove that anyone
could be taught to trade. It was known as the Trading Turtles experiment.
Curtis Faith was the most successful of the Turtles and shares his
experiences in this excellent read. 

Market Mind Games – Denise Shull Denise is a former trader and now a top
Trading Performance Coach. In this book  Denise gets inside the trader's mind
from a different angle. Denise, who has has also studied neuroscience, has an
exceptional understanding of what leads to psychological disturbances in
performance. You can hear Denise on an episode of our AlphaMind Podcast at
this link. 

The Hour Between Dog and Wolf: Risk-Taking, Gut Feelings and the Biology of
Boom and Bust. - John Coates Coates is a neuroscientist who use to work
inside an investment bank's trading business and thus has first hand
experience of the challenges of trading. Coates provides a very interesting
perspective of trader and market behaviour from a Neuroscience angle.

The Psychology of Trading – Brett Steenbarger There are few people with a
better understanding of Trader Psychology than Steenbarger. This is
reflected deeply in this book, which though not a light read, is an outstanding
journey into the psychological aspects faced by traders. The insights are
strong and powerful. You can hear Brett on one of early AlphaMind Podcast
episodes at this link. 

Minding the Markets: An Emotional Finance View of Financial Instability –

David Tuckett Trading is a highly emotional activity. Most of your actions, and
most market behaviour, is driven by emotions. This book explores these
aspects though an academic lens. This brilliant book is not a light read, but if
you are serious about upgrading your understanding of yourself and markets,
you want to set aside some time to read this powerful book.

The Behavioural Investor – Daniel Crosby Crosby is a psychologist who has

written extensively about the psychological and behavioural aspects of
investing. This book is quickly becoming a modern classic of investing.
Though this book is focused more on investing than trading, but nuances
aside, it is equally valid in many ways for traders. You can hear Daniel on our
one of early AlphaMind Podcast episodes at this link. 

Bite the Ass off a Bear – Garth Friesen A a much underrated book by a leading
Hedge Fund manager which ties together interesting trading anecdotes from
his experiences, his journey to the top-table and the challenges of getting
there. You can hear Garth on our one of early AlphaMind Podcast episodes at
this link. 

Fooled by Randomness, The Black Swan, Anti-Fragility and Skin in The Game
- Nassim Taleb One of the keys to success in Financial Markets is the ability
to understand the nature of uncertainty and complexity, and to understand
how it impacts you and how you work. Taleb's books explore this from various
differing perspectives. Any and all of Taleb's books are highly recommended. 

Thinking Fast & Slow – Daniel Kahneman. Behavioural Finance is all about

understanding how people make decisions in conditions of heightened
uncertainty. – Kahneman, a psychologist, is the High Priest of behavioural
Finance. Though not directly about trading, you will not fail make the
connections as you read.

The Little Book of Behavioural investing – James Montier. This book is a

brilliant short book on the psychological pitfalls encountered by people in
Financial markets.

Thinking in Bets - Annie Duke. Annie Duke is a former World Series of Poker

champion who talks about how people can embrace uncertainty and make
better decisions. Whilst this is not a book directly about trading and investing,
I've included it as it is so closely related and has been recommended by so
many traders and investors. 

High Performance Trading & Bullet Proof Trading - Steve Ward. Former sports
psychologist turned trader performance coach has written some of the most
popular books on trader mindset of the past few years. Steven's work
focuses on helping people improve how they are when facing the challenges
which face so many traders and investors. You can hear Steve on our one of
our AlphaMind Podcast episodes at this link. 
List 2: Books which can help develop Mindset and
Performance not related directly to Financial Markets. 

Growth Mindset – Carol Dweck I am reading this a 3rd time now, and it will not
be the last. My advice is read it, feflect on it, and read it again. Her theory of
Growth Mindset is something which every trader should try and adapt to. We
recently did a podcast on Grwoth Mindset and trading, which you can access
here. 

Atomic Habits – James Clear. So many people recommended this book, that I
have just downloaded it and started reading it. I am unable to give a full review
yet, but if it continues in anyway similar to how it has started, it is going to be
exceptional. I will update this soon.

Tools of Titans: The Tactics, Routines, and Habits of Billionaires, Icons, and
World-Class Performers - Tim Ferriss. This is another one of those books
recommended by many people traders. The Financial Times said Tools of
Titans is the perfect read for obsessives wanting to boost their  productivity. 

The Power of Now – Eckhardt Tolle. More spiritual than the other books, but
do not let that put you off. This will have a powerful impact on you. The
connection to performance will become apparent.

The Source: Open Your Mind, Change Your Life. - Dr Tara Svart. This has been
described as 'The Secret' but based on neuroscience. The Source strips away
some of of the mystique of the 'law of attraction' and replaces it with insights
based on neuroscience. 
The 7 Habits of Highly Effective People – Stephen Covey This book is huge in
the business world, but not the Financial Market world. Whilst some aspects
are not so relevant to trading, do not let cause you to miss some great
learnings and the overall message which will make you far more effective as a
d ld l b l bl f l d h l
trader. It would also be valuable if you are in a leadership role or running yor
own trading business.

The Art of Learning: An Inner Journey to Optimal Performance – Josh

Waitzkin. This is aAnother book I have not read yet, but it has been
recommended to me directly by countless Hedge Fund clients. The author
uses his own amazing story to inspire people to achieve optimal performance.

Risk Intelligence – How to Live with Uncertainty. – Dylan Evans. Not many

people have heard of this book, and even less have read it. It is a great book
which creates pause for thought and has some great learnings and insights
about living with risk and uncertainty.

The Chimp Paradox: The Mind Management Programme to Help You Achieve
Success, Confidence and Happiness. – Dr Steve Peters. Steve Peter’s
presents his Mind Management Model which he has used to great effect with
Olympic Athletes, Top Sports People and Business Leaders. Its a terrific
metaphor which really works when it comes to helping you become more
effective.

The Inner Game of Tennis – Tim Gallwey. This book is self-discovery, and

helping you develop and manage yourself to be more effective and relaxed
when engaged in performance. It is similar in a way to the Power of Now. 

The Winning Mindset: What Sport Can Teach Us About Great Leadership -
Damian Hughes. Success in trading demands a Winning Mindset. Damian is
one of the world's leaders in the area of developing a High Performance
Mindset. You can hear Damian on our Podcast from June 2020 at this link.   
The Wisdom of Crowds. – James Surowiecki Excellent book that will help you
understand the broader Psychology of Markets as a collection of people and
will impact your mindset on markets.

Blink – Malcom Gladwell This book has a very positive impact on me in my

trading years, waking me up to my intuitive skills, which often I had sought to
suppress.

Sources of Power – Gary Klein Klein’s work inspired Gladwell to write ‘Blink’.

Not as easy to read as some books, but with some brilliant perspectives on
intuition in decision-making in uncertain situations. You can hear Gary Klein on
our Podcast from May 2020 at this link.   

Who Moved My Cheese – Dr Spencer Johnson This book inspired me in

trading years and I always kept a copy by my trading desk. It is an allegorical
book with a powerful message about goals, change and habits.

Golf Isn’t a game of Perfect – Bob Rotella Many traders have read this and
advised me to read it. It is a terrific book about our desire for perfection and
how it holds us back.

Breaking the Habit of Being Yourself: How To Lose Your Mind And Create A
New One – Dr Joe Dispenza I have not read this but have been highly
recommended it, it is now on my reading list)

The Body Keeps the Score: Mind, Brain and Body in the Transformation of
Trauma – Bessel van der Kolk. Another book I haven’t read yet, but it has been
recommended by a few people I highly respect. I would guess the link is that
working in Financial Markets can be considered one long trauma, and this may
help you get past that.

If you there are other books which you feel are worthy of adding to this list,
please let me know either in the contacts section of this article or by email
at [email protected]

The AlphaMind Podcast

The AlphaMind podcast is co-hosted by Steven Goldstein and Mark Randall,
market veterans with over seven decades between them in the financial
markets.

The podcast delves into the lives and stories of extraordinary guests whose
experiences provide a fresh and powerful lens through which to understand
the mental, emotional, psychological and behavioural challenges people face
when encountering risk and uncertainty in financial markets.

To find out more visit the AlphaMind podcast at this link.

 
The AlphaMind Podcast is produced in partnership with 'The Society of
Technical Analysts'.

The AlphaMind Trader Performance Coaching

Programme
Our powerful Trader Performance Coaching Programme focuses on helping
people develop and improve the key risk skills, abilities and mindsets which
contribute to trading performance mastery.

This programme makes use of our unique and powerful ‘Human Alpha
Performance Model’ which helps illuminate the human aspects of the risk
process as people navigate their way through the Financial Markets. The
model helps people make sense of their behaviours when taking and
managing risk in the financial markets, whilst the coaching helps people to
make key changes and adjustments which drives growth in risk capability and
personal performance.