Book description
An investor's guide to understanding the most elusive (yet most important) aspect of successful investing - yourself.
Why is it that the investing performance of so many smart people reliably and predictably falls short? The answer is not that they know too little about the markets. In fact, they know too little about themselves.
Combining the latest findings from the academic fields of behavioral finance and experimental psychology with the down-and-dirty real-world wisdom of successful investors, Drs. Richard Peterson and Frank Murtha guide both new and experienced investors through the psychological learning process necessary to achieve their financial goals.
In an easy and entertaining style that masks the book's scientific rigor, the authors make complex scientific insights readily understandable and actionable, shattering a number of investing myths along the way. You will gain understanding of your true investing motivations, learn to avoid the unseen forces that subvert your performance, and build your investor identity - the foundation for long-lasting investing success.
Replete with humorous games, insightful self-assessments, entertaining exercises, and concrete planning tools, this book goes beyond mere education. MarketPsych: How to Manage Fear and Build Your Investor Identity functions as a psychological outfitter for your unique investing journey, providing the tools, training and equipment to help you navigate the right paths, stay on them, and see your journey through to success.
Table of contents
- Copyright
- Preface
- Acknowledgments
- 1. Your Investor Identity: And Why You Need One
-
2. Investor Identity Fundamentals: Frames, Motivations, and Goals
- 2.1. The Detail-Orientation Test: A Case Study in Frames
- 2.2. Frames: Your Tinted Glasses
- 2.3. Motivations: The Iceberg Theory
- 2.4. Goals: Create a Slide Show® to Guide Your Investing
- 2.5. The Five Questions to Ask Before Investing
- 2.6. Conclusion
- 3. Your Investor Personality: Your Character and Style
-
4. Your Investor Emotions: The Hidden Drivers of Behavior
- 4.1. Restless Ed, the Redemption-Seeking Channel Trader
- 4.2. Financial Wounds and Emotional Wounds
- 4.3. Understanding the Science behind Emotion
- 4.4. Using Your Emotions for Good: Damasio and the Iowa Gambling Task
- 4.5. Stirring the Unconscious
- 4.6. Being Triggered
- 4.7. Name that Emotion
- 4.8. Emotional Defenses
- 4.9. Ed's Epitaph
- 4.10. Conclusion
- 5. Your Investor Values: What's Most Important to You?
-
6. Your Investor Blind Spots: Identifying (and Avoiding) Mental Traps
- 6.1. Trap #1: Win/Lose Mentality
- 6.2. Trap #2: Down with the Ship Syndrome
- 6.3. Trap #3: Anchoring
- 6.4. Trap #4: Mean Reversion Bias
- 6.5. Trap #5: Endowment Effect
- 6.6. Trap #6: Media Hype Effect
- 6.7. Trap #7: Short-Termism
- 6.8. Trap #8: Overconfidence
- 6.9. Trap #9: Herding
- 6.10. Trap #10: Hindsight Bias
-
6.11. Market Psych's Investing Traps Worksheet
- 6.11.1. Trap #1: Win/Lose Mentality
- 6.11.2. Trap #2: Down with the Ship Syndrome
- 6.11.3. Trap #3: Anchoring
- 6.11.4. Trap #4: Mean Reversion Bias
- 6.11.5. Trap #5: Endowment Effect
- 6.11.6. Trap #6: Media Hype Effect
- 6.11.7. Trap #7 Short-Termism
- 6.11.8. Trap #8: Overconfidence
- 6.11.9. Trap #9: Herding
- 6.11.10. Trap #10: Hindsight Bias
- 6.11.11. What's Your Score?
- 6.11.12. Dangerous Profiles
- 6.12. Conclusion
-
7. Your Investor Stress: Smoothing Out the Ups and Downs
- 7.1. Stress: An Overview
- 7.2. Physical Effects of Stress
- 7.3. Choking
- 7.4. Managing Short-Term Investment Stress
- 7.5. Cognitive-Behavioral Techniques for Long-Term Stress Management
-
7.6. Financial Stress Management Plan (F-SMaP™)
- 7.6.1. Fear vs. Panic
- 7.6.2. Step 1: Acknowledge the Bad Times—Past, Present, and Future
- 7.6.3. Step 2: Maintain a Rational Anchor
- 7.6.4. Step 3: Determine Your Personal Stress Reactions
- 7.6.5. Step 4: Engage In Healthy Coping Mechanisms (i.e., "Hit the Pillow")
- 7.6.6. Step 5: Do Something!
- 7.6.7. Step 6: Commit to the Plan
- 7.6.8. Creating a Crisis Plan
- 7.7. Conclusion
- 8. Being Your Best Self
- A. Summary of Meditation Techniques
- B. Gratitude List
-
Notes
- B.1. Chapter 1 Your Investor Identity: And Why You Need One
- B.2. Chapter 2 Investor Identity Fundamentals: Frames, Motivations and Goals
- B.3. Chapter 3 Your Investor Personality: Your Character and Style
- B.4. Chapter 4 Your Investor Emotions: The Hidden Drivers of Behavior
- B.5. Chapter 5 Your Investor Values: What's Most Important to You?
- B.6. Chapter 6 Your Investor Blind Spots: Identifying (and Avoiding) Mental Traps
- B.7. Chapter 7 Your Investor Stress: Smoothing Out the Ups and Downs
- B.8. Chapter 8 Being Your Best Self
- About the Authors
Product information
- Title: MarketPsych: How to Manage Fear and Build Your Investor Identity
- Author(s):
- Release date: September 2010
- Publisher(s): Wiley
- ISBN: 9780470543580
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