Summary of The Psychology of Trading

Tools and Techniques for Minding the Markets

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The Psychology of Trading book summary
If you can identify and change your emotional patterns, you can win on Wall Street (a psychologist says it`s true).

Rating

8 Overall

8 Applicability

9 Innovation

7 Style

Recommendation

This is a handy, engaging guide to the psychology of trading. Author, psychologist and trader Brett N. Steenbarger identifies the cognitive and emotional risks that doom so many traders, and offers very specific guidance on techniques and practices for managing those risks. He focuses on teaching traders to observe their emotional and psychological patterns, to correlate their patterns with their trading success and failure, and then to take appropriate action. That’s probably plenty for you to work with, though traders caught in the worst self-destructive patterns may need more than a book to break their bad habits. getAbstract.com recommends this well-written, entertaining guide, which will be very useful to anyone who takes trading seriously. Steenbarger draws on psychological research and his practice as a therapist to tell traders what self-knowledge they need, how to get it and how to use it.

In this summary, you will learn

  • How your psychological and emotional patterns influence your success or failure in investing and trading
  • How to build good patterns and break bad ones
 

Summary

Patterns and Habits
Psychotherapy research indicates that people benefit most from therapy when they are in the middle reaches of distress. People who are in too much pain can’t go on, while people who are not in enough pain have no motivation to change. So failures, those events that ...
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About the Author

Brett N. Steenbarger, Ph.D., is associate professor of psychiatry and behavioral sciences at SUNY Upstate Medical University in Syracuse, New York, where he also serves as the director of student counseling. An active trader who conducts his own statistical market modeling research, Dr. Steenbarger has written feature columns for MSN’s money side.


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