The Psychology of Trading: A Concise Guide to Understanding Market Behavior
If you have ever wanted to have an edge in trading, one that gives you knowledge, skills, and tools that drastically increase your odds of success, then this book is for you. Because in order to be successful at trading in the financial markets, you need more than just knowledge of chart reading, technical indicators, and other mechanical aspects of trading. You need to understand how psychology can make or break you in the world of financial markets. It's not just money being transacted in the markets; it's also your emotions which can be as volatile as the stocks you are trading.

In this guide to trading psychology you will learn :

- The importance of controlling your emotions so they do not control you
- How to discipline yourself to stick to a trading plan
- How to learn from mistakes so you do not repeat them
- How to refine your skills through simulated trading without risking money
- How to use spreadsheets and journals for tracking trades
- How to have a confident mindset while avoiding overconfidence in trades
- How to maintain an open mind and avoid getting too attached to our ideas

In addition, this book delves into ideas from the realm of psychology and behavioral economics and demonstrates how they apply to trading :

- The sunk cost fallacy and how it can keep traders stuck in losing trades
- The hindsight bias and how it can lead traders to believe "they knew it all along"
- The confirmation bias and how it causes many traders to seek out only the information that reinforces their own ideas
- The bandwagon effect and how it can lead traders to embrace a herd mentality that often results in losing trades
- Analysis paralysis and how traders fall victim to the mistaken idea that more and more analysis leads to better financial outcomes

This and much more is covered in The Psychology of Trading....