5 Best Stock Investing Books for Beginners
•By Mahersaham
Artikel ini juga tersedia dalam Bahasa Melayu
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Most traders are willing to spend days, months, even years searching for the ''holy grail'' — a perfect trading system. What they often fail to realise is that the recipe for trading success actually encompasses psychology, trading systems, and money management.
Your success in stock trading does not depend entirely on the system or strategy you use. Rather, it is your emotions and mental state that will determine whether you succeed or fail as a trader. So to ensure you can survive long-term in the world of trading, make sure you have the right mindset first.
Many seminars and books about trading focus on techniques or systems used to generate investment profits. Since a trading setup alone does not guarantee your success and longevity in trading, this time we''re sharing books about mindset and psychology that you can use as references.
Alexander Elder is a psychiatrist, professional trader, and technical analysis expert. He believes that the key to trading success lies in mastering the 3 Ms — Mind, Method, and Money.
He shares the right mindset for a trader, how to build strong discipline, and how to control emotions. The book also covers technical indicators, trading systems, and risk management.
This book was published in 2000 and written by Mark Douglas, who was actively involved in trading education. According to reviews, the content is excellent, though the delivery can be somewhat lengthy.
In this book, the author emphasises that the thinking patterns of consistently profitable traders are vastly different from those of mediocre traders. He shares the mindset and actions that produce consistent profit in the stock market.
One of the newer books on trading psychology, published in 2015. Author Brett N. Steenbarger is an Associate Professor in Psychiatry and Behavioral Sciences at SUNY Upstate Medical University, New York. He is also a trader and has coached numerous traders for hedge funds and investment banking companies.
This book provides a comprehensive guide on applying psychological science to trading. It is divided into 4 main chapters covering techniques for adapting to change, building strengths, fostering creativity, and developing the most effective and efficient ways to generate profits.
Any trader who is new to stock trading has surely experienced hesitation when making a buy or sell decision even though the signal has appeared, or has taken profits too quickly while getting trapped in losing positions.
This is an example of the biggest challenge traders face, and it happens because of pressure. In this book, author Yvan Byeajee shares how he personally overcame these challenges to remain consistent in both his actions and trading results.
This book discusses psychological research and how it can be applied by traders to become more focused, confident, and achieve positive results. Dr Gary Dayton is a psychologist who began trading in 1999.
In the early days of his trading journey, he suffered losses. It was only after several years that he began to record consistent profits.
We recommend starting with Trading for a Living by Alexander Elder. It covers the essential 3 Ms — Mind, Method, and Money — which provide a solid foundation for any new trader.
Yes, absolutely. While these books focus on global trading principles, the psychological and money management concepts apply universally to Bursa Malaysia and any other stock market.
Not necessarily. Each book offers a unique perspective on trading psychology. Start with one or two that resonate with you, and expand your reading as you progress in your trading journey.
Successful investing starts with a strong foundation of knowledge.
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