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Investing Psychology: The Effects of Behavioral Finance on Investment Choice and Bias, + Website

by Tim Richards

April 2014

Intermediate to advanced

256 pages

6h 59m

English

Wiley

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BEATING THE BIAS BLIND SPOTILLUSORY PATTERN RECOGNITIONSUPERSTITIOUS PIGEONS—AND INVESTORSTHE SUPER BOWL EFFECT: IF IT LOOKS TOO GOOD TO BE TRUE, IT ISYOUR FINANCIAL HOROSCOPE: FORECASTING AND THE BARNUM EFFECTUNCERTAINTY: THE UNKNOWN UNKNOWNSILLUSION OF CONTROLSTOCKS AREN'T SNAKESHERDINGAVAILABILITYASSUMING THE SERIAL POSITIONHOT HANDSFINANCIAL MEMORY SYNDROMEATTENTION!THE PROBLEM WITH LINDAREPRESENTATIONTHE SEVEN KEY TAKEAWAYSNOTES
THE INTROSPECTION ILLUSIONBLIND SPOT BIAS, REVISITEDROSE-COLORED INVESTINGPAST AND PRESENT FAILURESDEPRESSED BUT WEALTHYDISPOSED TO LOSE MONEYLOSS AVERSIONANCHOREDTWO STRANGERSHINDSIGHT'S NOT SO WONDERFULDEFERRAL TO AUTHORITYEMOTIONBLACK SWANSDIRTY MONEY, MENTAL ACCOUNTINGA FAINT WHISPER OF EMOTIONPSYCHOLOGICALLY NUMBEDMARTHA STEWART'S BIASESRETROSPECTIVEANNUAL RETURNSNUDGEDMINDFULNESSTHE SEVEN KEY TAKEAWAYSNOTES
DISPOSITION VS. SITUATIONBEAUTY IS IN THE EYE OF THE INVESTORANGELS OR DEMONS?MERELY FAMILIARLEMMING TIMESTORY TIMEWISE CROWDS?ADAPTIVE MARKETSGEORGE SOROS' REFLEXIVITYGROW OLD QUICKLYSPEAKING ILLTHE POWER OF PERSUASIONSAD INVESTORSSELL IN MAY …THE MYSTERY OF THE VANISHING ANOMALIESTWEET AND INVESTFIRE!THE RISE OF THE MACHINESTHE SEVEN KEY TAKEAWAYSNOTES
CONFORM—OR DIEGROUPTHINKMOTIVATED REASONINGPOLARIZEDA PERSONAL MISSION STATEMENT: SOCIAL IDENTITY AND BEYONDGAMING THE SYSTEMYOU'VE BEEN FRAMEDBEHAVIORAL PORTFOLIOSDIVIDEND DILEMMASTHE LANGUAGE OF LUCREEMBEDDED INVESTINGFINANCIAL THEORY OF MINDTRUST ME, RECIPROCALLY …AKERLOF'S LEMONSTHE PEACOCK'S TAILFACEBOOKEDBE KIND TO AN OLD PERSONTHE SEVEN KEY TAKEAWAYSNOTES

MUTUAL FUND MADNESSIS PASSIVE PERSUASIVE?LOSING TO THE DARK SIDEFORECASTING—THE BUTTERFLY EFFECTFORECASTER BIASFEMININE FINANCETRADING ON A HIGHMARRIAGE AND MONEYMUDDLED MODELLERSCEO PAY—BECAUSE THEY'RE WORTH IT?CORPORATE MADNESSBUYBACK BROUHAHAOH NO, IPOYOUR 6 PERCENT SELF-INFLICTED TRADING TAXEXPERT OPINION?AVOID THE SHARPSHOOTERSTHE SEVEN KEY TAKEAWAYSNOTES
NUMBERS, NUMBERS, NUMBERSLOSING MOMENTUMMEAN REVERSIONSHORT SHIFTDIWORSIFICATIONDISCONFIRM, DISCONFIRMREVERSE POLARIZATIONEXPECTED VALUEINVESTING IN THE REAR VIEW MIRRORLIVING WITH UNCERTAINTYSUNK BY THE TITANIC EFFECTCHANGING YOUR MINDLOVE YOUR KIDS, NOT YOUR STOCKSCOGNITIVE REPAIRSSATISFICINGTHE SEVEN KEY TAKEAWAYSNOTES
#1: THE RULE OF SEVEN#2: HOMO SAPIENS, TOOL MAKER#3: META-METHODS#4: BE SKEPTICAL#5: DON'T TRUST YOURSELF#6: SELF-CONTROL IS KEY#7: GET FEEDBACKA BEHAVIORAL INVESTING FRAMEWORKSTEP #1: MAKING IT PERSONALSTEP #2: BUILD AN INVESTING CHECKLISTSTEP #3: WRITE IT DOWNSTEP #4: DIARIZE REVIEWSSTEP #5: GET FEEDBACKSTEP #6: DO AUTOPSIESSTEP #7: UPDATE ADAPTIVELYTHE WORST OFFENDERSTOOLSTHE MECHANICS OF INVESTINGTHE SEVEN KEY TAKEAWAYSNOTES
MYTH 1: MONEY MAKES US HAPPYMYTH 2: EVERYONE CAN BE A GOOD INVESTORMYTH 3: NUMBERS DON'T MATTERMYTH 4: FINANCIAL EDUCATION CAN MAKE YOU A GOOD INVESTORMYTH 5: I WON'T PANICMYTH 6: DEBT DOESN'T MATTERMYTH 7: I CAN GET 7 PERCENT A YEAR FROM MARKETSMYTH 8: INFLATION DOESN'T MATTERMYTH 9: EVERYONE HAS SOME GOOD INVESTING IDEAS, SOMETIMEMYTH 10: I DON'T NEED TO TRACK MY RESULTSTHE SEVEN KEY TAKEAWAYSNOTES
NOTES

Content preview from Investing Psychology: The Effects of Behavioral Finance on Investment Choice and Bias, + Website

About the Companion Website

This book includes a companion website, which can be found at www.wiley.com/go/investpsych. The website includes a set of worksheets and guidance for the following toolkits:

Behavioral Investing Toolkit 1: Mission Statement

Behavioral Investing Toolkit 2: Investment Thesis

Behavioral Investing Toolkit 3: Investing checklist

Behavioral Investing Toolkit 4: Feedback

Behavioral Investing Toolkit 5: Diarize Reviews

Behavioral Investing Toolkit 6: Autopsy

Behavioral Investing Toolkit 7: Update

The website also includes a spreadsheet that extracts the main lessons from the book. To access the site, go to www.wiley.com/go/investpsych (password: behavioral).

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Publisher Resources

ISBN: 9781118722190Purchase book