5 Books Every Day Trader Should Read
These books are like steroids for your trading brain.
And they’re not even about trading.
#1: Thinking, Fast And Slow
by Daniel Kahneman
(paperback | kindle | audio)
Traders lose more money through irrational thinking than through any other mistake. We hold onto losers too long because we think they are coming back. We only notice information that backs up our existing trading positions.
This book is dense. It’s long. It’s academic. You might fall asleep while you read it. But it’s worth it.
#2: The Power of Habit
by Charles Duhigg
(paperback | kindle)
I found this book in a bookstore in Portland. I sat on the floor and started reading.
I didn’t get up for two hours.
Habit might be the most powerful force on the planet.
This book unlocks the secrets of developing great habits. And stopping the bad ones. I read this book twice already in the last 6 months.
Traders develop terrible habits: Overtrading (that’s #1 on the list), over-leveraging (trading too big), changing trading systems too often — and the list goes on.
The big win I got from this book was: I started creating new, powerful habits for myself. I started getting up a little bit earlier to do my research before my trading. I started running robots and cut out a bunch of my discretionary trading (and started making more money). And more.
#3: How to Fail at Everything and Still Win Big
by Scott Adams
(paperback | kindle)
Scott Adams created the Dilbert cartoon.
He also introduced me to the concept of affirmations, taught me that the path to success comes with … failure, showed me how we make almost everything way too difficult.
My favorite quote from the book:
“I find it helpful to see the world as a slot machine that doesn’t ask you to put money in. All it asks is your time, focus, and energy to pull the handle over and over.”
Success (in trading, in life, in relationships, everything) is about NOT GIVING UP. About moving ahead through difficulty. I love this book. And best of all, it’s entertaining.
#4: The Four Agreements
by Miguel Ruiz
(Paperback | Kindle)
“Whatever life takes away from you,” says Ruiz, “let it go. When you surrender and let go of the past, you allow yourself to be fully alive in the moment. Letting go of the past means you can enjoy the dream that is happening right now.”
This is SO AWESOME for traders.
Let go of the past. Let go of your mistakes.
Let go of the losses. Allow yourself to enjoy the present moment, to focus on what you need to do now. Be impeccable in your word — especially when it comes to cutting off your bad trades.
Never let your last trade influence your next trade.
This book changed my life for the better and it wasn’t easy. I needed to confront that I wasn’t living up to my potential as a trader because I wasn’t always living up to some important standards.
#5: Antifragile
by Nassim Taleb
(Paperback | Kindle)
Taleb is famous for writing “The Black Swan.”
But this book is better. And more important.
Most systems (including trading systems) get crushed under the weight of chaos, or change, or volatility.
But some things get STRONGER under pressure.
Systems that get stronger under pressure are antifragile. And I’m using the word “stronger” but I mean more powerful, more profitable, more successful.
The book is packed with insights. The book has huge implications for traders — we are constantly in search of the perfect system with a great win/loss ratio or a great win percentage. But in reality we should be building systems that can withstand pressure, that actually do better when the market is chaotic.
Can I send you an expanded list of more books I’ve loved?
If you liked this list, I’ve got more for you.
I’ve got a list of 25 more books that have changed my life for the better, about relationships, about trading, about success, goal setting, and more.
Just pop your email in this form and I’ll instantly send you an email with the expanded list.
Have the best day ever
Rob
