Top Trading Psychology Books to Read in 2025
- GROWTH TRACKER
- Mar 21
- 3 min read
Updated: May 23
Successful trading isn't just about strategies and technical analysis. Your trading mindset also plays a crucial role in your long-term success. Many traders struggle with emotional discipline, impulsive decision-making, and psychological biases that can lead to losses.
However, they don't know the best way to overcome these challenges? Learning from the experts who have studied the psychology of trading in depth.
As we've completed three months of 2025, here are some must-read books on trading psychology that can help you master your emotions and improve your trading performance.
1. Trading in the Zone by Mark Douglas
Widely regarded as one of the best books on trading psychology, Trading in the Zone focuses on developing a disciplined mindset. Douglas emphasizes the importance of consistency, probabilistic thinking, and emotional control. These are the key traits of successful traders. This book might be a game changer if you often struggle with hesitation or overtrading.
2. The Psychology of Trading by Brett N. Steenbarger
Trading coach Dr Brett Steenbarger talks about the emotional challenges traders face in his book. Through real-life case studies, he explains how psychology impacts trading performance and provides practical exercises to improve self-awareness and mental resilience.
3. Mindset: The New Psychology of Success by Carol S. Dweck
While not specifically about trading, Mindset explores the concept of a "growth mindset" versus a "fixed mindset." Traders who embrace a growth mindset are more likely to learn from losses and adapt their strategies. This book helps traders reframe failure as an opportunity for improvement. It is about 300 pages and it's perfect for those who struggle with procrastination and motivation in general.
4. The Daily Trading Coach by Brett N. Steenbarger
If you prefer a hands-on approach, this book offers 101 practical lessons to develop mental discipline and improve your trading mindset. Each lesson is designed to be implemented in your daily trading routine, making it a great companion for consistent growth.
5. Atomic Habits by James Clear
Though not specifically about trading, Atomic Habits is invaluable for traders looking to build better habits and eliminate bad ones. Trading success is often about consistency. Clear's insights into habit formation can help you stick to your trading plan without falling into emotional traps.
6. The Disciplined Trader by Mark Douglas
Another classic by Mark Douglas, The Disciplined Trader, focuses on the psychological roadblocks that prevent traders from achieving success. It provides actionable strategies for discipline and mental toughness—critical skills for navigating volatile markets.
7. Market Mind Games by Denise Shull
Denise Shull, a neuroeconomics expert, explores how emotions influence financial decision-making. Unlike other books that advocate for removing emotions from trading, Shull argues that understanding and leveraging emotions can be a trader's edge.
8. Thinking, Fast and Slow by Daniel Kahneman
It is a must-read for any trader. It explains the two modes of thinking: fast, intuitive decision-making and slow, analytical reasoning. Kahneman's insights into behavioural biases can help traders recognize their mental blind spots and avoid costly mistakes.
9. Peak Performance by Brad Stulberg & Steve Magness
Traders, like athletes, need to perform at their best under pressure. Peak Performance explores the science behind sustained high performance, offering strategies on stress management, focus, and mental endurance—perfect for traders aiming for longevity.
10. Reminiscences of a Stock Operator by Edwin Lefèvre
This book, based on the life of legendary trader Jesse Livermore, is a timeless classic. It highlights the emotional highs and lows of trading. While not a psychology textbook, it offers invaluable lessons on risk-taking, market behaviour, and the psychological pitfalls that traders often face.
Mastering trading psychology is as crucial as learning technical analysis or risk management. These books provide incredible insights into how emotions influence trading decisions and offer practical strategies to cultivate a resilient, disciplined mindset. As you refine your trading skills in 2025, add these books to your reading list.
Looking to improve your trading discipline further? Explore Growth Tracker trading journals to help traders stay focused and accountable.
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