InhaltsangabeAs we move forward into the 21st century, fraught with global economic uncertainties and disruptions, it is more important than ever to understand the fundamental realities of behavioral finance and the inherent human biases that drive so many of our investment decisions. In Investing Psychology: The Effects of Behavioral Finance on Investment Choice and Bias, renowned behavioral investment expert and blogger Tim Richards provides a plain-language guide for understanding the perils of the financial world that have evolved around us and teaches us how to defend ourselves against our most dangerous financial enemy - our brain. Starting with an overview of how the brain perceives realities of the financial world at large and how human nature impacts even our most basic financial decisions, the author walks you through many of the preconceived notions that haunt individual investors and professional financial advisors alike. As humans, we tend to have an overly optimistic belief in our ability to assess risk and opportunity and to make the right decisions when it comes to our financial futures. And, unbeknownst to most of us, we are often being influenced by situational factors in our lives, as well as the pervasive group think of major financial media outlets and corporate marketing campaigns. All of it conspires to push us toward decisions that can have disastrous financial consequences. The key to overcoming the most common investment pitfalls, according to Tim Richards, is to learn to identify and overcome the fact that our tendency is often to make poor investment decisions because of our innate behavioral bias. When we understand how and why our brains consistently fool us, we gain the power to avoid bias in our decisions and maximize our investment returns.

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InhaltsangabePreface Chapter 1: Sensory Finance Beating the Bias Blind Spot Illusory Pattern Recognition Superstitious Pigeons - and Investors The Super Bowl Effect: If It Looks Too Good To Be True, It Is Your Financial Horoscope: Forecasting and the Barnum Effect Uncertainty: The Unknown Unknowns Illusion of Control Stocks Aren't Snakes Herding Availability Assuming the Serial Position Hot Hands Financial Memory Syndrome Attention! The Problem with Linda Representation The Seven Key Takeaways Notes Chapter 2: Self-Image and Self Worth The Introspection Illusion Blind Spot Bias, Revisited Rose Colored Investing Past and Present Failures Depressed but Wealthy Disposed to Lose Money Loss Aversion Anchored Two Strangers Hindsight's Not So Wonderful Deferral to Authority Emotion Black Swans Dirty Money, Mental Accounting A Faint Whisper of Emotion Psychologically Numbed Martha Stewart's Biases Retrospective Annual Returns Nudged Mindfulness The Seven Key Takeaways Notes Chapter 3: Situational Finance Disposition vs. Situation Beauty is in the Eye of the Investor Angels or Demons? Merely Familiar Lemming Time Story Time Wise Crowds? Adaptive Markets George Soros' Reflexivity Grow Old Quickly Speaking Ill The Power of Persuasion SAD Investors Sell in May. The Mystery of the Vanishing Anomalies Tweet and Invest Fire! The Rise of the Machines The Seven Key Takeaways Notes Chapter 4: Social Finance Conform or Die Groupthink Motivated Reasoning Polarized A Personal Mission Statement: Social Identity and Beyond Gaming the System You've Been Framed Behavioral Portfolios Dividend Dilemmas The Language of Lucre Embedded Investing Financial Theory of Mind Trust Me, Reciprocally. Akerlof's Lemons The Peacock's Tail Facebooked Be Kind To An Old Person The Seven Key Takeaways Notes Chapter 5: Professional Bias Mutual Fund Madness Is Passive Persuasive? Losing to the Dark Side Forecasting The Butterfly Effect Forecaster Bias Feminine Finance Trading on a High Marriage and Money Muddled Modellers CEO Pay Because They're Worth It? Corporate Madness Buyback Brouhaha Oh No, IPO Your 6% SelfInflicted Trading Tax Expert Opinion? Avoid the Sharpshooters The Seven Key Takeaways Notes Chapter 6: Debiasing Numbers, Numbers, Numbers Losing Momentum Mean Reversion Short Shift Diworsification Disconfirm, Disconfirm Reverse Polarization Expected Value Investing in the Rear View Mirror Living With Uncertainty Sunk By The Titanic Effect Changing Your Mind Love Your Kids, Not Your Stocks Cognitive Repairs Satisficing The Seven Key Takeaways Notes Chapter 7: Good Enough Investing #1: The Rule of Seven #2: Homo sapiens, Tool Maker #3: MetaMethods #4: Be Skeptical #5: Don't Trust Yourself #6: SelfControl is Key #7: Get Feedback A Behavioral Investing Framework Step#1: Making it Personal Step #2: Build an Investing Checklist Step #3: Write It Down Step #4: Diarize Reviews Step #5: Get Feedback Step #6: Do Autopsies Step #7: Update Adaptively The Worst Offenders Tools The Mechanics of Investing The Seven Key Takeaways Notes Chapter 8: A Few Myths More Myth 1: Money Makes Us Happy Myth 2: Everyone Can Be A Good Investor Myth 3: Numbers Don't Matter Myth 4: Financial Education Can Make You A Good Investor Myth 5: I Won't Panic Myth 6: Debt Doesn't Matter Myth 7: I Can Get 7% A Year From Markets Myth 8: Inflation Doesn't Matter Myth 9: Everyone Has Some Good Investing Ideas, Sometime Myth 10: I Don't Need To Track My Results The Seven Key Takeaways Notes Chapter 9: The Final Round Up Notes About the Com

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