Psychology uses the APA style of citations. How you are going to reference your direct quote depends on how long the quote is. If it is shorter than 40 words, it is considered a short quote; if 40 words or longer, it is a long quote. I'll include examples of both.
For short quotes, you can follow one of two different formats. If you mention the author in your sentence itself, then follow this example: Meyers (2005) indicated that "most modern dream interpretations stem from Freud's original analysis" (p. 223). So, mention the author's last name, then the year the book was published in parentheses, and after the quote, put "p." and the numbr of the page of the quote. If you don't mention the author, follow this format: "Most modern dream interpretations stem from Freud's original analysis" (Meyers, 2005, p. 223). Note in both cases that the end period of the sentence comes after the quotations, not before.
For long quotations, you first have to start off the reference in a new paragraph, and indent it, and the entire quote, 5 spaces. Then, don't use quotation marks. Instead, introduce the quote using a colon, and omit the quotations marks. For example--Meyers (2005) wrote of dream interpretation: Most modern dream interpretations stem from Freud's original analysis. (p. 223) Note that in this example, the end period comes before the last page citation.
In either case, in your end reference page, you will need to include a full citation of the Psychology book that you referenced earlier in the text. I hope that those examples helped a bit; I also provided a link below that outlines APA formatting in more detail, in case my examples didn't cover the type of quote that you are going to use. Good luck!
There are different standard systems of citing sources used by different institutions and publications. Any one standard system does not specify different way of citing for different subjects (such as psychology). The way of citing is generally related to different types of sources, such as books, journals, and research thesis. In particular note that method of citing appropriate method of citation for a particular work will be determined by the subject of the paper being written rather than the subject of the source quoted. Thus APA system of citation, which is developed by American Psychologist Association, may be more popular for papers dealing with psychology. But this does not mean that all papers in areas of management citing works in psychology are also more likely to use APA system of citing.
Coming to the question of listing the source with the main text or at the end under references, The general practice in all the common standard system is to uniquely identify the source in the main text, and in addition give a separate complete list of references with necessary details to enable the reader to locate the source, and if required, refer to the original source.