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Hersh Shefrin: Beyond Greed and Fear
Martin J. Pring: Investment Psychology Explained
Now if the subject is extended a little bit you might have a look at agent based artificial societies. One of the playgrounds would be Sugarscape - Growing Agent-based Artificial Societies ( www.sugarscape.sourceforge.net)
Those are dumb and simple creatures, but behave in a similar way as human crowds. Basically shows that nonlinear systems mostly do not have equilibrium points but tend to spend considerable time in seemingly stable configurations before breaking out of these in a violent manner. Trading ranges followed by trending moves. Without these properties of non-linear systems we would only see Gaussian distributions and random markets, and mean reversion models as traded by LTCM might actually work.
Some books that extend the subject a little bit to individual behaviour and behavioural economics (it's a bit off-topic, but I enjoyed the reads):
Robert A. Akerlof and Robert J.Shiller : Animal Spirits
Ori Brafman and Rom Brafman: Sway -The Irresistible Pull of Irrational Behaviour
Richard H. Thaler: The Winner's Curse
After reading the posts on futures.io (formerly BMT), I just got my new book from Amazon by Al Brooks on Saturday. futures.io (formerly BMT) is a great web site, traders for traders. Nobody trying to sell you some junk and profit. The only profit we are interested in is from the markets. Alot of great systems and indicators for which I am totally confused. Coming here with my own system makes it more confusing. Any how that is why I bought the book. Begin with the basics and move forward. Add a (very) few indicators (maybe) and in a few years change my status to advanced trader. Thanks to all futures.io (formerly BMT) members. Love the d9.
Reading Price Charts Bar by Bar, Al Brooks
Technical Analysis of Stock Trends Edwards and Magee
Trading the Ross Hook,Joe Ross
The Disciplined Trader, Mark Douglas
Trading Chaos, Bill Williams
The Master Swing Trader, Alan Farley
Technical Analysis of the Finacial Markets, John Murphy
Day Trading Futures The Manual, Malcolm Robinson
online - Lance Biggs site with emphasis on candles, price action and trapped traders - great, easy to understand free videos
Books I have read (not all of them finished yet) and that I recommend:
Gerald Appel: Technical Analysis: Power Tools for Active Investors
Constance Brown: Technical Analysis for the Trading Professional
Tushar Chande: Beyond Technical Analysis
Michael W. Covel: Trend Following
Thomas R. DeMark: New Market Timing Techniques
Perry J. Kaufman: New Trading Systems and Methods
John Murphy: Intermarket Analysis
Jack D. Schwager: Technical Analysis
J. Welles Wilder: New Concepts in Technical Trading Systems
Chris Wilkinson: Technically Speaking
Bertrand M. Roehner: Patterns of Speculation - A Study in Observational Econophysics
It is not something you can easily apply to day trading, but nevertheless an interesting read.
The book has four chapters
- Econophysics
- How do markets work?
- Regularities in speculative episodes
- Theoretical Framework
The author tries to identify regularities in speculative peaks. Peaks are separated into U-class and S-class. U-class (sharp) peaks can be observed fo commodities, whereas S-class (flat) peaks can be found for real estate, stamps and bonds. The author uses statiistics from several centuries to substantiate his ideas.
The last chapter requires a solid knowledge of mathematics, I decided to postpone any effort to try to understand it. However, three quarters of the book does not require more than some basic understanding of statistics.
There is another book on the topic of modelling bubbles, which in my opinion is more complete. But then again, this book requires at least some undergraduate knowledge of mathematics.
Didier Sornette: Why Stock Markets Crash - Critical Events in Complex Financial Systems
as traded by LTCM might actually work. 
