Been trading for a while now and keep making the same mistakes. I read somewhere that understanding psychology behind trading can help.
Looking for books that explain why we make bad choices with money. Something that’s not too academic would be great.
What helped you improve your decision making?
Trading in the Zone by Mark Douglas saved me after I blew my account twice in year two.
Douglas nails why we hold losers too long and dump winners early. I picked it up right after losing $800 on a revenge trade.
Nothing academic about it - just pure focus on the mental stuff that kills most traders.
Predictably Irrational by Dan Ariely covers decision-making biases with trading examples. Market Wizards interviews show how pros handle psychology. Both deliver actionable data without theory overload.
Your Brain on Money by Claudia Hammond explains why panic happens during losing streaks and how wins can lead to overconfidence. It helped identify my patterns.
Behavioral Economics for Dummies may seem basic but it covers mental traps that affect traders. It’s more practical than academic books, allowing immediate application.
These books made me aware that emotions drive many of my poor trading decisions.
The Undoing Project by Michael Lewis shows exactly how our brains sabotage us. Way easier than most finance books and packed with real examples of biases that wreck trading decisions.
Thinkin Fast and Slow by Kahneman is longer but explains why we chase losses and panic sell at bottoms. Totally changed how I see emotions vs logic.
This video nails the psychology stuff that trips up traders:
Both books help me catch myself before making the same dumb mistakes over and over.
Check out Behavioral Finance by Raghuram Rajan for practical insights.