5 Must-Read Books on the Psychology of Trading 2023

Making profits on any Online Trading platform is not just about finding the right strategy. It has a lot to do with psychology and self-discipline. 

5 Must-Read Books on the Psychology of Trading

An aspiring trader needs to be aware of his strong and weak sides and balance them. For this article, we have selected 5 books that should help a budding online trader develop important traits and fix risky problems. These books will be useful regardless of your strategy, risk tolerance and goals.

OK, let's get started.

#1 The disciplined trader by Mark Douglas

This is our favorite book of all time. Well, its full title is the disciplined trader: Developing Winning Attitudes, and we can say that this content fulfills the stated goal.

The book's author, Mark Douglas, was one of the pioneers in the field of trading psychology. The Disciplined Trader has become a best-seller and an industry classic. This book is full of very useful tips on how to develop a mindset that will enable you to make consistent profits.


Mark Douglas focuses on the importance of healthy emotional attitudes to a trader's success. After all, it doesn't matter how good your strategy is if you can't control your greed or fear. 

The Disciplined Trader is a really easy and exciting read, unlike some other educational books on trading that often turn the mind numb. Douglas is a fantastic instructor and a gifted storyteller.

If something seems wrong, and you can't figure out what's going wrong, we recommend reading this book. The Disciplined Trader can shed some light on what is causing the blockage and how to eliminate it.

 #2 The Hour Between Dog and Wolf by John Coates

Again, the full title, The Hour Between Dog and Wolf: How Risk-Taking Transforms Us, Body, and Mind, is too long. By “the hour between dog and wolf” the author meant psychological changes in a trader under positive or negative stress. 

John Coates explores situations when a person suddenly becomes overconfident and begins to take too many risks when a winning streak begins. On the contrary, a hard time makes him timid, indecisive and risk-averse.

Coates helps readers understand the deep connection between success in trading and the way our bodies and minds feel and behave. In turn, these emotions can cloud the conscience of a novice trader and lead to losses by forcing them to make wrong decisions.

Fortunately, some scientific tricks shared by Coates can help harden your mind and body against the stress that is a constant part of active trading.

#3 Trading in the Zone by Mark Douglas

Another best-seller by Mark Douglas, author of The Disciplined Trader. Trading in the Zone, this book was released after 10 years. A must-read if you want to discover and change the harmful mindset that stands between you and sustained profitability. 

This book will give you the opportunity to overcome the mental and emotional habits that are causing you to lose money. Douglas wrote Trading in the Zone after many years of analyzing his own thoughts, feelings, and behaviors, as well as those of good and bad traders. 


A popular trading instructor, Douglas had plenty of material to research. Some traders argue that reading only one of these books will be enough, but we recommend reading both. 

Trading in the Zone repeats some of the points from The Disciplined Trader, but it greatly expands on them. We are 100% sure that these two books combined can vastly improve the way you trade.

#4 Mean Markets and Lizard Brains by Terry Burnham

Can our lizard brain be trusted when it comes to trading decisions that ensure biological survival? It's hard to say.

In this eye-opening book, Terry Burnham explores what causes markets and individuals to behave irrationally. Why do people buy some assets at absurdly high prices? What factors turn the market upside down for no good reason? 

Also ReadTop 10 Best Online Trading Apps for 2023 - Online Trading Apps of 2023

What ancient trends lie behind sell-offs, bubbles, panics and crashes? Terry Burnham's thrilling investigations give readers an insight into the psychology of humans and the markets. You'll learn more about how and why your "animal ego" drives you to do strange things.

Certainly, it is not possible to convert a single book reader into a 100% rational human being. Instead, it will make you aware of how our subconscious mind deceives us when it comes to money. 

This awareness will make you skeptical about your conscience's financial advice which often leads to disastrous mistakes.

#5 Brett N. The Daily Trading Coach by Steinberger

As per the subtitle, the book sets out to help you become a trading psychologist by sharing 101 lessons to be learned by yourself.

If you're a fan of self-training, this book will be a great addition to your library. The Daily Trading Coach has everything you would expect from a self-study tutorial. 

It provides inspiring, easy to read and unique content. Dr. Brett, as readers of the author's blog call him, has put together a ton of great tips and strategies, combining practical exercises and case studies.

As Steinberger combines a psychological background with a rich trading experience, his guide will help you tackle the typical hurdles that every newbie faces. For a dedicated student, this can be a great way to gain some business knowledge at a relatively low cost.


Reading about trading psychology is a great way to pass the time. Firstly, it keeps your mind sharp. Second, it shows the cause-and-effect relationship between your activities, thoughts, beliefs, and profits. Ultimately, it motivates you to become better at online trading.

If you prefer other ways of learning, remember that trading offers a variety of educational opportunities and resources. Never Stop Learning!

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