3 Books That Newbie Traders Read To Become Pro In 1 Week


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Once upon a time when I had the luxury of time and some capital, I traded options, forex and stocks.

Like most novice traders, I actively read up and attended some seminars in search of the holy grail in trading.

By trading, I mean holding on to positions for a relatively short window and hoping to make a profit from buying and selling the position.

Regardless of whether one trades options, forex, stocks, futures, commodities or one uses the candlesticks, stochastics, Fibonacci or any other technical method, there is an quality inherent in traders that are successful.

Instead of focusing on the finding the perfect system, my takeaway is that what is even more important is the psychological make-up of the individual trader.

This is something which distinguishes the average trader who breaks even or just make a minor profit and those who really succeed.

The secret to consistently trading profitably is found in 3 books that I am about to share with you.

Here are 3 books newbie traders should read in order to ensure their successful trading. They are all by Ruth Roosevelt, a professional coach in training traders to all become effective and profitable.

successful trading

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Book 1: Exceptional Trading

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In all her books, they do not provide specific information on trading systems or patterns.

Instead, the emphasis of this book is on overcoming limiting beliefs and attitudes that prevent you from trading well.

For aspiring traders who wish to develop the proper mindset and mental attitude to trade and win consistently, this book is an invaluable resource.

It covers the dedication required to attain excellence, explores how our unconscious beliefs influence our behaviour when trading, compares the mental models of winners and losers, forces the reader to confront their emotions of fear and greed, and how to overcome the issue of pride when trading.

It has practical advice on how to handle losing streaks and how to view mistakes as opportunities for growth.

From this book, the reader will be able to apply the strategies for immediate use in trades.

Book 2: Overcoming 7 Deadly Sins Of Trading

deadly sins

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In this book, Ruth highlights the 7 deadly sins commonly committed by losers and how to avoid them.

However, these sins might be committed unknowingly.

So she did a fantastic job of elaborating on each of the 7 sins:

·        Perfectionism;

·        Fear;

·        Pride;

·        Impatience;

·        Greed;

·        Anger and

·        Recklessness

It is only when one is mindful of the trading sins that one can decide to improve on them.

The author concludes by describing the qualities of the successful trader who is free from the “sins”, is disciplined by following the trading system and insouciant to the outcome of the each individual trades.

It is a simple read which gets to the source of many mental obstacles that most traders are familiar with that usually leads to exasperation and losses.

Book 3: 12 Habitudes Of Highly Successful Traders

habitudes

[image credits: www.amazon.com]

Unlike the previous book, this one describes the habits inherent in successful traders which are developed through the right attitude when trading.

The 12 “habitudes” are preparedness, abundance consciousness, risk taking, thinking in probabilities, discipline, courage, acceptance of loss, comfortable with uncertainty, optimism, open-mindedness, long-term view and detachment.

As these are the fundamental causes that determine whether trading is profitable, it is important for traders to ponder over their habits and examine how these influence their decision when trading.

It is very concise and filled with the critical knowledge traders need to manage their emotions when trading.

It directs the trader to recognise their strengths and flaws, and provides workable, successful settlements.

Conclusion

Trading requires nerves of steel and the necessary capital before you could embark on the journey.

Even then, many traders will either breakeven, make a minor profit or worst, lose money over time.

The key to successful trading does not lie in trading a particular instrument or using a particular system.

Instead, one’s psychological make-up is the most crucial determinant of success.

These 3 books by Ruth have done a good job in enabling traders to overcome their Achilles heel… I would go on to say that they are among the best books on trading psychology.

Trading psychology

[image credits: www.leadingtrader.com]

Do you agree that trading psychology is the key to successful trading? Let us know!

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LYS

LYS is a typical Singaporean in his 30s who is married with a son. Like many, he is interested money and has spent his time learning a lot about it. He likes to write and wishes to share his experience on his relationship with money.



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