March 10, 2025
100 Books for Algorithmic Trading Professionals – Part 7: Trading Psychology
By Axon Trade Team
This article is part of the "100 Books for Algorithmic Trading Professionals" series prepared by the Axon Trade team. Read other parts here:
Part 1: Foundations of Algorithmic Trading
Part 2: Math & Statistics for Trading
Part 3: Coding & Tools
Part 4: AI & Machine Learning in Trading
Part 5: Portfolio Optimization & Risk Management
Part 6: Case Studies and Real-World Stories
Part 7: Trading Psychology
Introduction
Every trader operates under uncertainty, but the difference between success and failure often lies in how decisions are made under pressure. Fear, overconfidence, hesitation, and impulsive reactions shape market behavior as much as technical indicators and economic data. Recognizing these psychological forces and managing them effectively is a skill that separates disciplined traders from those who struggle with consistency.
This selection of books examines the mental aspects of trading, combining insights from psychology, neuroscience, and behavioral finance. Some focus on practical techniques for managing stress and developing self-discipline, while others explore how emotions and cognitive biases influence financial decisions. Readers will find strategies for handling risk, improving focus, and adapting to market volatility with a structured mindset.
Trading Psychology 2.0
Author: Brett N. Steenbarger
Published: 2015
Trading Psychology 2.0 by Brett N. Steenbarger offers insights into the psychology behind trading. It provides practical strategies to improve trading performance by addressing the mental and emotional aspects that influence decision-making. Drawing from academic research and real-world examples, Steenbarger explains the core principles of trading psychology and applies them to active traders and investors.
The book includes advice on how to apply psychological principles in real-world trading situations, offers actionable steps to improve mental resilience, and shows how traders can gain an edge by understanding the human factors driving the markets.
The Daily Trading Coach
Author: Brett N. Steenbarger
Published: 2009
The Daily Trading Coach by Brett N. Steenbarger offers practical strategies for self-coaching traders at any level. It provides 101 lessons aimed at improving mental and emotional resilience, which are crucial for success in trading. Steenbarger combines his expertise as both a trader and psychologist to guide readers through the process of overcoming psychological barriers and mastering self-discipline in their trading practice.
The book emphasizes actionable steps, with practical advice and exercises to help traders improve their decision-making and cope with the challenges they encounter in the markets. It encourages traders to create their own process of self-improvement and applies psychological principles to enhance performance.
The Hour Between Dog and Wolf
Author: John Coates
Published: 2012
John Coates explores how biology affects risk-taking in financial markets. Drawing on his experience as a trader and neuroscientist, Coates reveals how hormones like testosterone and cortisol shape our decisions under stress, influencing traders’ behavior during booms and busts.
Through his research, Coates shows that changes in body chemistry, driven by success or failure, can heighten risk-taking or caution. This book connects biology with decision-making, offering insights on managing physiological responses to risk in high-pressure environments.
Thinking, Fast and Slow
Author: Daniel Kahneman
Published: 2013
Thinking, Fast and Slow by Daniel Kahneman explores the two systems that drive human thinking. System 1 is fast, intuitive, and emotional, while System 2 is slower, more deliberate, and logical. Kahneman explains how these systems shape our decisions and judgments, highlighting the impact of cognitive biases on everything from financial decisions to daily life choices.
The book offers practical insights into how we can improve decision-making by understanding when to trust our intuition and when to rely on more careful, analytical thinking. By delving into the ways our minds work, Kahneman provides valuable tools for managing the biases that often lead us astray.
Crypto Trading Psychology
Author: Robert Williams
Published: 2023
Crypto Trading Psychology by Robert Williams provides practical insights into the psychological challenges traders face in the cryptocurrency market. It explains the emotional drivers behind trading decisions, such as fear, greed, and overconfidence, and outlines strategies to manage these factors.
The book offers techniques for maintaining emotional control, building resilience, and avoiding common psychological traps. By focusing on mental discipline and emotional regulation, it helps traders stay objective, handle losses effectively, and maintain a consistent approach to trading in a volatile market.
The Psychology Of Crypto Trading
Author: Jide George
Published: 2024
"The Psychology of Crypto Trading: Mental Strategies for Thriving in Digital Asset Markets" by Jide George offers practical techniques to manage emotions and maintain discipline in volatile crypto markets. It focuses on overcoming fear, greed, and impulsiveness, which often lead to poor trading decisions.
The book also emphasizes building mental resilience and developing a growth-oriented mindset to make rational decisions under pressure. It provides strategies for traders at all levels to handle psychological challenges and succeed in the fast-paced digital asset market.
The Behavioral Investor
Author: Doctor Daniel Crosby
Published: 2018
In The Behavioral Investor, Dr. Daniel Crosby explores how psychological factors influence investment decisions and behavior. The book examines the sociological, neurological, and physiological impediments to sound investment decision-making and offers solutions to refine decision-making processes, increase self-awareness, and address the flaws to which most investors are prone.
The book is divided into three parts: the first explains the external factors affecting investment choices; the second discusses key psychological tendencies that influence behavior; and the third provides a framework for managing wealth while acknowledging behavioral challenges. Crosby aims to equip readers with tools to improve investment decisions and understand the underlying psychological aspects of successful strategies.
Risk-Return Analysis
Author: Harry M. Markowitz
Published: 2013
In Risk-Return Analysis: The Theory and Practice of Rational Investing, Harry M. Markowitz, a Nobel laureate and the pioneer of Modern Portfolio Theory (MPT), re-examines his groundbreaking concepts for the modern investment world. This book addresses common misconceptions about MPT and offers practical insights for financial professionals looking to enhance their investment strategies by effectively evaluating risk and return.
The first volume in a comprehensive series focuses on the core principles of portfolio construction, providing the tools to judge risk-measures accurately. Markowitz draws on decades of research to show how different risk measures impact investment decisions, helping readers build portfolios that maximize returns over the long run by selecting the most appropriate risk measures for their goals.
Your Money and Your Brain
Author: Jason Zweig
Published: 2008
In Your Money and Your Brain, Jason Zweig explores the science of neuroeconomics, explaining how our brains influence financial decisions. He identifies common mental pitfalls like overconfidence and risk misunderstanding, offering practical steps to avoid them.
Drawing on neuroscience and psychology research, Zweig provides strategies for making smarter investment choices and overcoming biases, helping investors take control of their financial decisions.
Market Mind Games
Author: Denise Shull
Published: 2011
Denise Shull challenges traditional views by emphasizing the role of emotions in financial decision-making. She argues that understanding and integrating our emotional responses can lead to more effective trading strategies.
Shull introduces the concept of "fractal-emotional contexts," suggesting that unconscious emotional patterns influence trading behaviors. By recognizing these patterns, traders can gain a competitive edge. This book offers a fresh perspective on trading psychology, providing insights that can enhance decision-making and performance in the financial markets.
The New Trading for a Living
Author: Alexander Elder
Published: 2014
The New Trading for a Living is a guide that merges modern trading practices with traditional wisdom, updated for today’s fast-paced financial markets. The book emphasizes a disciplined approach to trading, with a strong focus on risk management and self-awareness. It covers key topics such as stock selection, trade planning, and assessing one’s readiness to trade. By using this book, traders can develop a structured approach to improve their effectiveness in modern markets.
This edition includes practical templates and strategies to help both new and experienced traders. It teaches how to identify favorable market conditions, manage money effectively, and use a record-keeping system to refine one’s trading process. The New Trading for a Living offers valuable insights into creating a comprehensive trading system for long-term success.
Trade Mindfully
Author: Gary Dayton
Published: 2014
Trade Mindfully focuses on improving trading performance through mindfulness and psychological techniques. It helps traders manage stress, increase focus, and build confidence, drawing on recent psychological research to tackle the emotional challenges of trading.
The book teaches essential mental skills and strategies for success in volatile markets. By applying mindfulness and High Value Trading Actions (HVAs), traders can enhance decision-making and overcome psychological obstacles for better performance.
The Mental Game of Trading
Author: Jared Tendler
Published: 2021
Jared Tendler provides a clear step-by-step system for overcoming common emotional obstacles in trading. Whether it’s fear, greed, or a lack of discipline, this book addresses how these issues harm your performance and provides practical solutions for improving decision-making and execution.
Tendler’s approach, backed by real trader success stories, shows how to tackle the psychological factors that affect trading. It offers a framework to identify the root causes of mistakes and discipline problems, helping traders of all levels reach their full potential.
Best Loser Wins
Author: Tom Hougaard
Published: 2022
Tom Hougaard reveals the mindset that helped him become one of the most successful high-stakes retail traders. Known for his impressive track record, including turning $30,000 into over $1.3 million in a year, Hougaard stresses that exceptional trading results come from thinking differently.
This book is about mind management, not strategies or technical analysis. Hougaard explains how traders can elevate their performance by focusing on mental discipline and how this approach ultimately outperforms traditional methods. Best Loser Wins is an essential read for traders aiming to break through mental barriers and achieve superior results.
Mastering Trading Psychology
Author: Andrew Aziz, Mike Baehr
Published: 2020
Andrew Aziz combines personal experiences from real-life traders with insights on the psychology of trading. The book takes a practical approach, offering stories from over 175 traders who share their personal struggles, failures, and successes. These stories help readers learn how to improve their mental skills to overcome the psychological obstacles that often hold back traders.
Aziz emphasizes the importance of understanding the mental aspects of trading, alongside strategy and technology. Through the accounts of a diverse group of traders, this book provides valuable lessons on mastering the mindset needed for success in the trading world.
Conclusion
Trading requires more than technical knowledge and strategy. Mental discipline, self-awareness, and the ability to manage emotions under pressure influence long-term performance. The books in this collection provide insights into the challenges traders face, from overcoming cognitive biases to building resilience in unpredictable markets.
For traders working on refining their approach, combining structured learning with the right tools can make a difference. Professional traders rely on data-driven execution, risk management, and performance tracking to support their decision-making. Learn more about available solutions at Axon Trade or get in touch through Contact Us .
Looking for more insights? Continue exploring the series:
Subscribe to our newsletter
Join our mailing list and get the latest news, updates, and exclusive offers delivered to your inbox.
We don’t share your email address publicly
© 2025 Axon Trade. All rights reserved.