Must-Read Books for Investors – 5 Books Every Trader Needs
•By Mahersaham Team
Artikel ini juga tersedia dalam Bahasa Melayu
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Most traders are willing to spend days, months, and even years searching for the ''holy grail'' – the perfect system.
Without realising it, the recipe for success in trading actually encompasses psychology, trading system 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 a trader succeeds or fails.
So to ensure you can survive in the trading world for the long term, make sure you have the right mindset first.
Let us look at 5 must-read trading books for investors.
Alexander Elder is a psychiatrist, professional trader, and expert in technical analysis.
He believes that a trader''s success is determined by their mastery of the 3Ms – Mind, Method, and Money.
He shares the right mindset for a trader, how to build strong discipline, and how to control emotions.
This book also covers Technical Indicators, trading systems, and risk management.
This book can be purchased on Amazon for around USD $40 – $50.
Click here to purchase www.amazon.com/Trading-Living-Psychology-Tactics-Management/dp/0471592242
This book was published in 2000 and written by Mark Douglas, who was actively involved in teaching trading.
According to reviews, the content of this book is excellent, but the delivery can be somewhat drawn out.
In this book, the author emphasises that the thinking patterns of consistently profitable traders are vastly different from mediocre traders.
The author shares the thinking and actions that produce consistent profits in the stock market.
To get this book, it can be purchased on Amazon for USD $27 – $35.
Details at www.amazon.com/Trading-Zone-Confidence-Discipline-Attitude/dp/0735201447
Author Brett N. Steenbarger is an Associate Professor of Psychiatry and Behavioral Sciences at SUNY Upstate Medical University, New York.
He is also a trader and has trained numerous traders for hedge funds and investment banking companies.
This book provides a comprehensive guide on how to apply the science of psychology in the trading world.
It is divided into 4 main chapters covering techniques for adapting to change, building strengths, nurturing creativity, and developing the most effective and efficient ways to generate profits.
This book can be purchased on Amazon for around USD $32 – $40.
Interested? Purchase at www.amazon.com/Trading-Psychology-2-0-Practices-Processes/dp/1118936817
Any trader who has just entered the stock market has surely experienced hesitation when making a buy or sell decision even though the signal has appeared, or they take profits too quickly and get trapped in losing counters.
These are examples of a trader''s greatest challenges, and they occur due to pressure.
In this book, author Yvan Byeajee shares how he personally overcame these challenges to remain consistent in his trading actions and results.
To get this book, it can be purchased on Amazon for USD $26 – $30.
Details at www.amazon.com/Essence-Trading-Psychology-One-Skill/dp/1530731895
This book discusses psychological research and how traders can use it to become more focused, confident, and achieve positive results.
Dr Gary Dayton is a psychologist who started trading in 1999.
At the beginning of his trading journey, he incurred losses. Only after several years did he begin to record consistent profits.
This book can be purchased on Amazon for around USD $60 – $70.
Click here www.amazon.com/Trade-Mindfully-Performance-Mindfulness-Cutting-Edge/dp/1118445619
Among the best books for beginner investors are "Trading in the Zone" by Mark Douglas and "Market Wizards" by Jack D. Schwager. Both books provide a solid foundation in trading psychology and strategy.
Yes, reading trading books is very important as it exposes you to the experiences of successful traders, proven strategies, and helps build the discipline and right mindset for investing.
There is no fixed number, but at least 5 basic trading books are sufficient to build an initial understanding. The key is to practise what you have learnt from these books.
These books can be found at popular bookstores such as Kinokuniya and MPH, or online through platforms like Amazon and Book Depository.
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