The Inner Game of Trading and Investing and the Irrational Mind (Howard Abell, Robert Koppel)
Trader's Library #27 · Trading psychology. Pioneers of trading psychology: from visualisation to behavioural economics.
Author: Howard Abell, Robert Koppel · Original: The Inner Game of Trading; Investing and the Irrational Mind · Year: 1993 · Usefulness for traders: ★★★☆☆
What it's about
“The Inner Game of Trading” (Abell and Koppel) is one of the first books on trader psychology: beliefs, visualisation, emotions and state of mind. “Investing and the Irrational Mind” (Koppel) connects trader psychology with behavioural economics.
What it gives a trader
The first book is close to neuro-linguistic programming and personal development; the second relies more on research. Together they show trading psychology's path from motivation to the science of cognitive biases.
Lessons for traders
- beliefs about yourself affect how you execute your plan
- emotions won't disappear, but you can change how you react to them
- irrationality is predictable, so you can prepare for it
What to watch out for
“The Inner Game of Trading” is fairly old and in places close to coaching esoterica. Better to start with Douglas and Tendler.
Discussion
The discussion takes place in Hetman Capital Club (in Polish). Join the discussion in the Club →
Navigation
← #026 Forecasting Financial Markets (Tony Plummer) · Library index · #028 Investment Psychology Explained (Martin J. Pring) →
Educational content, not investment advice. The book description is my own summary and assessment, not quotations. Edition details were checked in catalogues and bookshops, and where there was doubt I said so plainly.