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Inside the Investor's Brain
Book

Inside the Investor's Brain

The Power of Mind Over Money

Wiley, 2007
First Edition: 2007 подробнее...


Editorial Rating

8

Qualities

  • Applicable

Recommendation

Richard L. Peterson’s book is riveting, useful and, at times, poignant and funny. Peterson discusses a broad range of emotional and cognitive factors that influence investing. Some are common and will apply to all readers, but others are so subtle that they are sure to surprise even experienced investors. Peterson synthesizes and summarizes neuropsychology and behavioral studies, explains them in clear prose and illustrates them with examples drawn from investors’ lives – and sometimes from their disasters. getAbstract recommends this work to readers interested in behavioral economics or in improving their investment practices.

Take-Aways

  • Your emotions and personality affect your investing – for both good and ill.
  • The more emotionally involved you are in an investment, the more likely you are to be biased about its quality.
  • The higher the stakes, the harder it is for people to think clearly about risk.

About the Author

Richard L. Peterson is an associate editor at The Journal of Behavioral Finance and a managing partner of Market Psychology Consulting.


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