If you love and hate trading at the same time, these four books will leave you exhilarated, wanting to slap your thighs after reading.
1. (Trading Psychology Analysis) — Specifically treats the issue of 'buying leads to decline, selling leads to rise,'
This book can cure your 'itchy hands'! The author, Mark Douglas, hits the nail on the head: 'You think losing money is due to poor technique? It's actually because your mindset collapsed! Why do you make a fortune in the simulation but lose in real trades? Because real money will make you 'hope for a rise, fear a fall,' and ultimately be led by your emotions. The toughest trick in the book is to silently remind yourself before the market opens, 'I will definitely lose 3 times today,' which can help you calm down. Suitable for gamblers who always want to 'go all in.'
2. (Living by Trading), from doctor to full-time trading expert,
Teaches you to trade with the mindset of 'playing a game'! The author, Elder, was originally a psychiatrist, and after switching to trading found that traders, like patients, tend to self-destruct. For example, 'after making a profit, you want to double it; after losing, you want to recover your losses,' leading to deeper trouble. He proposes the three pillars of trading: psychology, technique, and money management, emphasizing especially 'using stop-loss orders to protect yourself, just like saving a game.' After reading, you'll understand: Experts are not always right; they can stay alive even when wrong.
3. (Breaking Illusions, Moving Toward Maturity), a guide for retail investors to navigate challenges,
The author, a financial empire builder, wrote this grassroots trading bible, translating the turtle trading rules into survival wisdom at the mahjong table. The most subversive argument is: Random entry + relentless trend-following = winning most strategies effortlessly.
Classic theory in the book: A moving average golden cross is a trap set by the big players; the technical signals you think are real are actually false moves. The finer you set your stop-loss, the quicker you die; a vague correctness is stronger than an exact wrong; play futures with a poker mindset, with the folding rate determining survival rate.
4. (Reminiscences of a Stock Operator), a martial arts novel of the trading world,
Livermore's life is more thrilling than a movie! He earned $1,000 at 15, reached a net worth of over $100 million at 30, and experienced four bankruptcies before making a comeback. This book has no technical indicators, only the raw human nature of competition. He famously said: 'There’s nothing new on Wall Street because human nature never changes.' Reading it is like watching experts duel; he helps you step into the pits of losing money and the traps of liquidation. After reading, you will understand: the greatest enemy in trading is actually yourself.
Finally, let’s speak frankly:
These books won’t make you rich overnight, but they can save you five years of detours. As one reader said: 'If I had seen these earlier, my account could have at least a few more zeros.' Trading is an infinite game, and the true winners are those who 'know how to lose.'