It would seem that most of us FX newcomers want to dive right into EA’s, scalping, indicators, various trading systems and other methods of trade without paying mind to who they are and what they are like.
I have decided to start at the opposite end of the spectrum and dive into the psychology! The way we think and the way we react to our emotions is extremely important in every aspect of our lives and even more so when we submit an order, so getting to know yourself and how you handle various stressful or rewarding situations is absolutely invaluable for success in the market.
My question is: What are your favorite books on trading psychology? What about mastering the control of your emotions in general? Are there other resources that have helped you remain objective in even the most extreme cases?
So far, I am about halfway through Martin J. Pring’s “Trading Psychology Explained”. I am really enjoying it and think that further study of the subject should precede any further excursions into the world of FOREX.
I though Brett Steenbarger’s - Psychology Of Trading was pretty good. Like may psychology books it does a lot of self promoting how how good of a trader he was or is. Some of the studies has done are interesting. I think the most important topic is trader development and it reinforces what I have already learned by the school of hard knocks. However I do think is was helpful in gauging where I doing well and where I could improve. I have not read any of Martin J. Pring’s work but your mentioning its spurs some interest to take a look at in the near future.
I would actually go with Brett’s second book Enhancing Trader Performance instead. It includes a lot from the first and adds in considerably more good stuff.
I’m reading Enhancing Trader Performance right now. I like how it’s broken down into neat sections so you won’t be bombarded with too many similar advice all at once.
Nice to see someone recognising Psychology as key to success. the trouble with the “other end of the spectrum” is that isn’t how pros do it. those people who want EA’s and “Holy Grail” systems basically want to be told When and where to put their money so that it will make profits.
I recommend Van Tharp’s books. (esp Trade your way to financial freedom / Super trader) and Mark Douglas “Trading in the zone” I havent read Brett Steenbarger, but i will get to it.