Trading Psychology 2.0: From Best Practices to Best Pro… (2024)

Brett N. Steenbarger

4.16125ratings11reviews

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Practical trading psychology insight that can be put to work today Trading Psychology 2.0 is a comprehensive guide to applying the science of psychology to the art of trading. Veteran trading psychologist and bestselling author Brett Steenbarger offers critical advice and proven techniques to help interested traders better understand the markets, with practical takeaways that can be implemented immediately. Academic research is presented in an accessible, understandable, engaging way that makes it relevant for practical traders, and examples, illustrations, and case studies bring the ideas and techniques to life. Interactive features keep readers engaged and involved, including a blog offering ever-expanding content, and a Twitter feed for quick tips. Contributions from market bloggers, authors, and experts bring fresh perspectives to the topic, and Steenbarger draws upon his own experience in psychology and statistical modeling as an active trader to offer insight into the practical aspect of trading psychology. Trading psychology is one of the few topics that are equally relevant to day traders and active investors, market makers and portfolio managers, and traders in different markets around the globe. Many firms hire trading coaches, but this book provides a coach in print, accessible 24/7 no matter what the market is doing. While markets may differ in scale, scope, and activity, humans remain human, with all the inherent behavioral tendencies. Studying the market from the human perspective gives traders insight into how human behavior drives market behavior. Trading Psychology 2.0 gives traders an edge, with expert guidance and practical advice.

    GenresPsychologyFinanceBusinessNonfictionEconomics

448 pages, Hardcover

First published March 23, 2015

About the author

Brett N. Steenbarger

16books42followers

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4.16

125ratings11reviews

5 stars

59 (47%)

4 stars

42 (33%)

3 stars

15 (12%)

2 stars

3 (2%)

1 star

6 (4%)

Displaying 1 - 11 of 11 reviews

Marco

83 reviews46 followers

May 23, 2017

Best book I've ever read on psychology and peak perfromance.

I thought that "trading in the zone" was the best one, but this one is more accurate in the process of mastery.

I rate it 4 out of 5 because it's too long, too advertising with his "partners", of course he doesn't say "trader x from blog x', has this best practice x'' " without a reason. Also I'm starting to doubt that his frequent prompt by other books about peak performances aren't born by a joint venture to get more sales. Not that I'm criticizing this, he does it also for the money, and it's fine, otherwise he'd get less view, ditto for the traders, but, I found that a lot of pages were redundant and he could have trimmed the book by at least 100 pages (it's 450 pages long). Also a lot of personal facts, like his behaviour with his cats, a lot of examples, too much imho, but still, great lecture.

I highly recommend it to any people who is serious about improving his trading and life performances.

Manish Gupta

91 reviews8 followers

April 24, 2018

A fantastic multi disciplinary book that creates an amazing symphony of trading and psychology. As usual there will be elements that will not appeal to everybody, but that's exactly the point. One simply needs to understand their strengths and weaknesses and there is enough for anyone caring to read to get enough out of it.

On the flip side the book is a dry read with a lot of repetitions that makes it a slog. The information contained in the book however makes up for much more than the money and time you would put into it.

Afshid

13 reviews

Read

September 21, 2020

I read the Persian version, so I do comment in Farsi. Although the book itself was very useful and made some huge impacts on my trades.

کتاب بسیار مفیدی بود که من از کتاب روانشناسی معامله گری دیگری مانند معامله گر منضبط مایکل داگلاس مفیدتر می دانم. اما ترجمه فارسی که توسط نشر آراد ارائه شده و ترجمه پویا قنبری و آرمان بهلولی است، بسیار ضعیف و نا امید کننده بود، تا آنجا که کتاب بعد از ترجمه حتی یکبار هم نمونه خوانی نشده بود. پر از غلط های املایی، ویرایشی، دارای جملات نامفهوم و گاهی حتی شامل مکالمه دو مترجم با هم بود(ص 330). به هر حال مجبور شدم تا با کتاب اصلی مقابله کنم و خود کتاب بسیار عالی و مفید بود. تاثیرات عمیقی بر نحوه معامله گری من گذاشت.

Artemus

238 reviews

June 27, 2022

had a lot of bookmarks and to-do bookmarks.
It really lived up to its title and covered deeply the concept of trading psychology, which was ultimately the purpose of thy I read the book. It exceeded my expectations. Now that I have it as ‘one’ of my foundations, my task is applying the things I learned, one concept at a time and diving to it deeply and engraving it to my soul.
Overall, I will be including this book to my top 10 and will be re-reading it soon. And hoping for more resources from the author to dive into.

This entire review has been hidden because of spoilers.

    favorites non-fiction non-fiction-2019

Vasco

451 reviews25 followers

March 25, 2019

Very interesting book that touches spiritual, intrinsic motivation, rituals, and more. It references Chip and Dan Heath, the Gazette and trading during your day job including hiding charts from co-works.

Very interesting and worth re-reading.

Gary Morga

Author1 book1 follower

December 27, 2017

It's a great book but seldom does one size fit all.

    financial

Alejandro Alvarez

78 reviews3 followers

January 13, 2023

This book provides insights into what it takes to become a successful trader. He emphasises building social, emotional, cognitive, and personality strengths. One of the things that I like about this book is the truth behind it, which is trading is not an easy profession. If someone wants to get into this business because it's not as time-consuming as other industries, she will crash very hard into the wall. Trading is very time demanding, and people need to understand that.
One aspect that I did not find enjoyable about this book was its length. The author took a simple idea into pages and pages of redundancy and multiple examples with a vague relationship with markets or trading.
If you have the time and patience to read this book, go for it. Otherwise, I do recommend reading a summary.

Julison

43 reviews

January 2, 2023

Plenty of advices for traders in any level

I loved this book. It’s not an easy read but the author brings a lot of advices the fits any level of trading. The most important for me was: treat your trades like a business. The last part of the book (57 best practices) is awesome. And finally, the way the author approaches how to dealing with emotions changed my view! I couldn’t recommend it more and also recommends follow author’s blog and Twitter.

Jared "Tater Salad" Garretti

50 reviews

November 14, 2023

A few golden tidbits but definitely explains too much in many paragraphs that could be a few sentences. This didn't have to be nearly 450 pages long. That being said, most anyone would probably learn something crucial/helpful from this.

    trading

Valentine Ssebuyungo

34 reviews1 follower

August 18, 2022

Great read about general psychology and trading thoughts

Ho Yong Jie Giggs

10 reviews

June 16, 2022

Most applicable and interesting book I ever read on trading. Money well spent

Displaying 1 - 11 of 11 reviews

Trading Psychology 2.0: From Best Practices to Best Pro… (2024)

FAQs

Is trading 70% psychology? ›

According to experts, successful trading is a result of 30% strategy and 70% of understanding Trading Psychology. So, if you are capable of handling your emotions and making full use of Trading, progress is not far for you in the Trading world.

What are psychological levels in trading? ›

In trading, a psychological level is a price point in a financial market that holds significant psychological significance due to its round number (whole numbers that are multiples of 5, 10, 100, etc.) or key numeric value (price levels with market importance due to historical, technical, or trading activity reasons).

What is the psychology of professional trader? ›

Key Takeaways. Trading psychology is the emotional component of an investor's decision-making process, which may help explain why some decisions appear more rational than others. Trading psychology is characterized primarily by the influence of both greed and fear. Greed drives decisions that might be too risky.

What is the 70 30 trading strategy? ›

The strategy is based on:

Portfolio management with 70% hedge and 30% spot delivery. Option to leave the trade mandate to the portfolio manager. The portfolio trades include purchasing and selling although with limited trading activity.

Is trading really 50 50? ›

No! Not on random trades. Each result still has a 50% probability, no matter what outcomes came prior. The same is true of a coin toss—if it lands heads ten consecutive times, the probability of it landing on tails on the next toss is still 50%.

Who is the father of trading psychology? ›

Tharp. Dr. Van Tharp is remembered as a founding father of the field of trading psychology and one of the world's top trading coaches.

How to understand trading psychology? ›

Trading psychology refers to the mental state and emotions of a trader that determines the success or failure of a trade. It represents the aspects of a trader's behavior and characteristics that influence the actions they take when trading securities.

How do you accept trading loss psychologically? ›

As you imagine losing, practice alternative thoughts. You might try thinking, “The loss doesn't mean anything. It is just feedback.” Don't think of a losing trade as having personal meaning. It is merely feedback about how your strategies are working or the market conditions during a particular point in time.

What is the psychology of trading winning mindset? ›

Winning traders are flexible.

They aren't ego-invested in their trades. They are able to always view the market objectively and easily cast aside trade ideas that aren't working. Winning traders do not hesitate to risk money when they see a genuine profit opportunity based on their market analysis and trading strategy.

What personality types are best for traders? ›

According to studies, traders who can think critically, analyze situations, and make quick decisions tend to perform better in the market. INTJ personality types are most frequently observed as successful traders due to their innate personality types.

What personality type makes the best trader? ›

The Analytical Mastermind: INTJ

Their analytical skills allow them to dissect market trends and take calculated risks. If you're an INTJ, you might find that your natural inclination toward data analysis and logical reasoning serves you well in trading.

Is trading 80 psychology? ›

Yet, after reading The Disciplined Trader (twice) I realised, in Mark Douglas's words. That successful trading is 80% psychological and only 20% method. It was the less obvious psychological aspects of trading. That in my first few years as a trader were letting me down.

Is trading 90 psychology? ›

It is often said that trading is 90% mindset and 10% skills. Having the right mindset is essential for any successful trader, as it helps to build confidence and consistency in your trading decisions. The right mindset can help you make good decisions quickly, remain disciplined and stay focused.

How much psychology is important in trading? ›

The nuances of human emotion, instinct, and behavior can profoundly impact your decision-making process. That's why it's important to understand your own unique trading psychology. Emotions—especially fear and greed—can be a big factor in your trading.

Is trading good for Mental Health? ›

The challenges inherent in online trading and investment can wield a significant influence on mental health, unleashing a spectrum of emotions from exhilaration to anxiety.

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