Trading Psychology Books | Forex Beginning - Forex for beginners

Trading Psychology Books

A truly amusing and yet eye-opening book that teaches both the newbie and the experienced fx trader some hard won truths about the currency market. Highly recommended.
Mark Douglas has no formal training in psychology. His knowledge about psychology is derived from real trading, thus it is quite valuable. The book discusses the emotional shortcomings of the losing trader, and offers insights on what traders should do to become successful. Successful trading, according to the author, is the process of yielding to the market and being in control only of yourself and the way you respond to the fluctuating market conditions.
Mark Douglas’ more popular book. The author, who is a trader, personal trading coach, and industry consultant since 1982, sends the message that "thinking strategy" will profoundly influence a trader’s success rate. Douglas addresses five very specific issues to give traders the insight and understanding about themselves that will make them consistent winners in the market. It uncovers the true culprit for lack of consistently positive results when it comes to stock picking: lack of focus and self-confidence. Through simple exercises, traders will learn how to think in terms of probabilities, and adopt the specific beliefs necessary to developing a winner’s mindset. The book mentions the stock market all along but the ideas and concepts it teaches can be applied to forex trading.
A good book on a field called Behavioral Finance. Financial expert Michael Pompian shows you how to make better investment decisions by employing behavioral finance research. The author reveals twenty of the most prominent individual investor biases and helps you properly modify your asset allocation decisions based on the latest research on behavioral anomalies of individual investors. Not precisely what anybody would call a forex book, but it definitely contains gems of wisdom that can help a budging investor in the financial markets.
The book delves into the workings of a new field called Neuroeconomics. An interesting find is, for example, that we humans believe we're smart enough to forecast the future even when we have been explicitly told that it is unpredictable. Among the book's fun facts: the MRI brain scan of a cocaine addict is virtually identical to that of someone who thinks he is about to make money. The book reveals the deficiencies of our decision making processes and how we sometimes inadvertently do things that are against our own best interests.