The best trading book you will ever read....the one that makes the greatest impact on your actual profits....is.....your own trading journal.
Seriously. I've read literally hundreds of trading books over the last 3 decades and whilst they have been useful, they can give nothing more than the mechanics and theory behind the process. Most are fine for beginners - to understand what an iron condor is, what a butterfly trade looks like, but the transformation of that knowledge into actual, practical application is what is required to be a consistent trader.
Once I started doing a proper journal, I noticed my trading style change, my profitability increase and my stress levels reduce. I documented every trade, and was able to identify patterns in my behaviour and actions which were causing me to make big losses, or enter trades which I shouldn't have, or exited when I should have held etc. I started to identify common mistakes I was making - both in execution and judgement. I became more aware of my FOMO, my position sizing, and risk management.
The journal uses Excel sheets and Word docs, with text, graphics, back-test result, and recommendations for next time I'm in a similar situation.
