{"product_id":"investing-psychology-website-isbn-9781118722190","title":"Investing Psychology, + Website","description":"\u003cb\u003eDiscover how to remove behavioral bias from your investment decisions\u003c\/b\u003e \u003cp\u003eFor many financial professionals and individual investors, behavioral bias is the largest single factor behind poor investment decisions. The same instincts that our brains employ to keep us alive all too often work against us in the world of finance and investments.\u003c\/p\u003e \u003cp\u003e\u003ci\u003eInvesting Psychology + Website\u003c\/i\u003e explores several different types of behavioral bias, which pulls back the curtain on any illusions you have about yourself and your investing abilities. This practical investment guide explains that conventional financial wisdom is often nothing more than myth, and provides a detailed roadmap for overcoming behavioral bias.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eOffers an overview of how our brain perceives realities of the financial world at large and how human nature impacts even our most basic financial decisions\u003c\/li\u003e \u003cli\u003eExplores several different types of behavioral bias, which pulls back the curtain on any illusions you have about yourself and your investing abilities\u003c\/li\u003e \u003cli\u003eProvides real-world advice, including: Don't compete with institutions, always track your results, and don't trade when you're emotional, tired, or hungry\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003e\u003ci\u003eInvesting Psychology\u003c\/i\u003e is a unique book that shows readers how to dig deeper and persistently question everything in the financial world around them, including the incorrect investment decisions that human nature all too often compels us to make.\u003c\/p\u003e  \u003cp\u003ePreface xiii\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 1 Sensory Finance 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBeating the Bias Blind Spot 1\u003c\/p\u003e \u003cp\u003eIllusory Pattern Recognition 4\u003c\/p\u003e \u003cp\u003eSuperstitious Pigeons—and Investors 6\u003c\/p\u003e \u003cp\u003eThe Super Bowl Effect: If It Looks Too Good to Be True, It Is 9\u003c\/p\u003e \u003cp\u003eYour Financial Horoscope: Forecasting and the Barnum Effect 10\u003c\/p\u003e \u003cp\u003eUncertainty: The Unknown Unknowns 12\u003c\/p\u003e \u003cp\u003eIllusion of Control 13\u003c\/p\u003e \u003cp\u003eStocks Aren’t Snakes 15\u003c\/p\u003e \u003cp\u003eHerding 16\u003c\/p\u003e \u003cp\u003eAvailability 19\u003c\/p\u003e \u003cp\u003eAssuming the Serial Position 21\u003c\/p\u003e \u003cp\u003eHot Hands 23\u003c\/p\u003e \u003cp\u003eFinancial Memory Syndrome 25\u003c\/p\u003e \u003cp\u003eAttention! 27\u003c\/p\u003e \u003cp\u003eThe Problem with Linda 29\u003c\/p\u003e \u003cp\u003eRepresentation 31\u003c\/p\u003e \u003cp\u003eThe Seven Key Takeaways 33\u003c\/p\u003e \u003cp\u003eNotes 34\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 2 Self-Image and Self-Worth 37\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Introspection Illusion 37\u003c\/p\u003e \u003cp\u003eBlind Spot Bias, Revisited 39\u003c\/p\u003e \u003cp\u003eRose-Colored Investing 40\u003c\/p\u003e \u003cp\u003ePast and Present Failures 41\u003c\/p\u003e \u003cp\u003eDepressed but Wealthy 43\u003c\/p\u003e \u003cp\u003eDisposed to Lose Money 44\u003c\/p\u003e \u003cp\u003eLoss Aversion 45\u003c\/p\u003e \u003cp\u003eAnchored 46\u003c\/p\u003e \u003cp\u003eTwo Strangers 48\u003c\/p\u003e \u003cp\u003eHindsight’s Not So Wonderful 50\u003c\/p\u003e \u003cp\u003eDeferral to Authority 51\u003c\/p\u003e \u003cp\u003eEmotion 52\u003c\/p\u003e \u003cp\u003eBlack Swans 54\u003c\/p\u003e \u003cp\u003eDirty Money, Mental Accounting 55\u003c\/p\u003e \u003cp\u003eA Faint Whisper of Emotion 56\u003c\/p\u003e \u003cp\u003ePsychologically Numbed 57\u003c\/p\u003e \u003cp\u003eMartha Stewart’s Biases 58\u003c\/p\u003e \u003cp\u003eRetrospective 60\u003c\/p\u003e \u003cp\u003eAnnual Returns 60\u003c\/p\u003e \u003cp\u003eNudged 61\u003c\/p\u003e \u003cp\u003eMindfulness 62\u003c\/p\u003e \u003cp\u003eThe Seven Key Takeaways 65\u003c\/p\u003e \u003cp\u003eNotes 66\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 3 Situational Finance 69\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDisposition vs. Situation 69\u003c\/p\u003e \u003cp\u003eBeauty Is in the Eye of the Investor 70\u003c\/p\u003e \u003cp\u003eAngels or Demons? 71\u003c\/p\u003e \u003cp\u003eMerely Familiar 73\u003c\/p\u003e \u003cp\u003eLemming Time 74\u003c\/p\u003e \u003cp\u003eStory Time 76\u003c\/p\u003e \u003cp\u003eWise Crowds? 78\u003c\/p\u003e \u003cp\u003eAdaptive Markets 79\u003c\/p\u003e \u003cp\u003eGeorge Soros’s Refl exivity 81\u003c\/p\u003e \u003cp\u003eGrow Old Quickly 82\u003c\/p\u003e \u003cp\u003eSpeaking Ill 83\u003c\/p\u003e \u003cp\u003eThe Power of Persuasion 85\u003c\/p\u003e \u003cp\u003eSAD Investors 86\u003c\/p\u003e \u003cp\u003eSell in May . . . 87\u003c\/p\u003e \u003cp\u003eThe Mystery of the Vanishing Anomalies 89\u003c\/p\u003e \u003cp\u003eTweet and Invest 90\u003c\/p\u003e \u003cp\u003eFire! 92\u003c\/p\u003e \u003cp\u003eThe Rise of the Machines 93\u003c\/p\u003e \u003cp\u003eThe Seven Key Takeaways 94\u003c\/p\u003e \u003cp\u003eNotes 95\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 4 Social Finance 99\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eConform—or Die 99\u003c\/p\u003e \u003cp\u003eGroupthink 100\u003c\/p\u003e \u003cp\u003eMotivated Reasoning 101\u003c\/p\u003e \u003cp\u003ePolarized 103\u003c\/p\u003e \u003cp\u003eA Personal Mission Statement: Social\u003c\/p\u003e \u003cp\u003eIdentity and Beyond 104\u003c\/p\u003e \u003cp\u003eGaming the System 106\u003c\/p\u003e \u003cp\u003eYou’ve Been Framed 108\u003c\/p\u003e \u003cp\u003eBehavioral Portfolios 110\u003c\/p\u003e \u003cp\u003eDividend Dilemmas 112\u003c\/p\u003e \u003cp\u003eThe Language of Lucre 113\u003c\/p\u003e \u003cp\u003eEmbedded Investing 114\u003c\/p\u003e \u003cp\u003eFinancial Theory of Mind 116\u003c\/p\u003e \u003cp\u003eTrust Me, Reciprocally . . . 118\u003c\/p\u003e \u003cp\u003eAkerlof’s Lemons 119\u003c\/p\u003e \u003cp\u003eThe Peacock’s Tail 122\u003c\/p\u003e \u003cp\u003eFacebooked 123\u003c\/p\u003e \u003cp\u003eBe Kind to an Old Person 124\u003c\/p\u003e \u003cp\u003eThe Seven Key Takeaways 126\u003c\/p\u003e \u003cp\u003eNotes 127\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 5 Professional Bias 131\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMutual Fund Madness 131\u003c\/p\u003e \u003cp\u003eIs Passive Persuasive? 133\u003c\/p\u003e \u003cp\u003eLosing to the Dark Side 134\u003c\/p\u003e \u003cp\u003eForecasting—The Butterfl y Effect 136\u003c\/p\u003e \u003cp\u003eForecaster Bias 138\u003c\/p\u003e \u003cp\u003eFeminine Finance 140\u003c\/p\u003e \u003cp\u003eTrading on a High 141\u003c\/p\u003e \u003cp\u003eMarriage and Money 142\u003c\/p\u003e \u003cp\u003eMuddled Modelers 144\u003c\/p\u003e \u003cp\u003eCEO Pay—Because They’re Worth It? 145\u003c\/p\u003e \u003cp\u003eCorporate Madness 146\u003c\/p\u003e \u003cp\u003eBuyback Brouhaha 148\u003c\/p\u003e \u003cp\u003eOh No, IPO 149\u003c\/p\u003e \u003cp\u003eYour 6 Percent Self-Infl icted Trading Tax 150\u003c\/p\u003e \u003cp\u003eExpert Opinion? 151\u003c\/p\u003e \u003cp\u003eAvoid the Sharpshooters 153\u003c\/p\u003e \u003cp\u003eThe Seven Key Takeaways 154\u003c\/p\u003e \u003cp\u003eNotes 154\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 6 Debiasing 159\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eNumbers, Numbers, Numbers 159\u003c\/p\u003e \u003cp\u003eLosing Momentum 160\u003c\/p\u003e \u003cp\u003eMean Reversion 162\u003c\/p\u003e \u003cp\u003eShort Shift 163\u003c\/p\u003e \u003cp\u003eDiworsification 165\u003c\/p\u003e \u003cp\u003eDisconfirm, Disconfi rm 167\u003c\/p\u003e \u003cp\u003eReverse Polarization 168\u003c\/p\u003e \u003cp\u003eExpected Value 170\u003c\/p\u003e \u003cp\u003eInvesting in the Rearview Mirror 172\u003c\/p\u003e \u003cp\u003eLiving with Uncertainty 174\u003c\/p\u003e \u003cp\u003eSunk by the Titanic Effect 175\u003c\/p\u003e \u003cp\u003eChanging Your Mind 177\u003c\/p\u003e \u003cp\u003eLove Your Kids, Not Your Stocks 178\u003c\/p\u003e \u003cp\u003eCognitive Repairs 180\u003c\/p\u003e \u003cp\u003eSatisficing 181\u003c\/p\u003e \u003cp\u003eThe Seven Key Takeaways 182\u003c\/p\u003e \u003cp\u003eNotes 183\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 7 Good Enough Investing 187\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e#1: The Rule of Seven 187\u003c\/p\u003e \u003cp\u003e#2: Homo Sapiens, Tool Maker 188\u003c\/p\u003e \u003cp\u003e#3: Meta-Methods 189\u003c\/p\u003e \u003cp\u003e#4: Be Skeptical 189\u003c\/p\u003e \u003cp\u003e#5: Don’t Trust Yourself 190\u003c\/p\u003e \u003cp\u003e#6: Self-Control Is Key 191\u003c\/p\u003e \u003cp\u003e#7: Get Feedback 191\u003c\/p\u003e \u003cp\u003eA Behavioral Investing Framework 192\u003c\/p\u003e \u003cp\u003eStep #1: Making It Personal 193\u003c\/p\u003e \u003cp\u003eStep #2: Build an Investing Checklist 195\u003c\/p\u003e \u003cp\u003eStep #3: Write It Down 196\u003c\/p\u003e \u003cp\u003eStep #4: Diarize Reviews 197\u003c\/p\u003e \u003cp\u003eStep #5: Get Feedback 198\u003c\/p\u003e \u003cp\u003eStep #6: Do Autopsies 199\u003c\/p\u003e \u003cp\u003eStep #7: Update Adaptively 200\u003c\/p\u003e \u003cp\u003eThe Worst Offenders 201\u003c\/p\u003e \u003cp\u003eTools 203\u003c\/p\u003e \u003cp\u003eThe Mechanics of Investing 204\u003c\/p\u003e \u003cp\u003eThe Seven Key Takeaways 206\u003c\/p\u003e \u003cp\u003eNotes 207\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 8 A Few Myths More 209\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMyth 1: Money Makes Us Happy 210\u003c\/p\u003e \u003cp\u003eMyth 2: Everyone Can Be a Good Investor 211\u003c\/p\u003e \u003cp\u003eMyth 3: Numbers Don’t Matter 212\u003c\/p\u003e \u003cp\u003eMyth 4: Financial Education Can Make You a Good Investor 213\u003c\/p\u003e \u003cp\u003eMyth 5: I Won’t Panic 214\u003c\/p\u003e \u003cp\u003eMyth 6: Debt Doesn’t Matter 215\u003c\/p\u003e \u003cp\u003eMyth 7: I Can Get 7 Percent a Year from Markets 216\u003c\/p\u003e \u003cp\u003eMyth 8: Infl ation Doesn’t Matter 217\u003c\/p\u003e \u003cp\u003eMyth 9: Everyone Has Some Good Investing Ideas, Sometime 217\u003c\/p\u003e \u003cp\u003eMyth 10: I Don’t Need to Track My Results 218\u003c\/p\u003e \u003cp\u003eThe Seven Key Takeaways 219\u003c\/p\u003e \u003cp\u003eNotes 219\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 9 The Final Roundup 221\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eNotes 224\u003c\/p\u003e \u003cp\u003eAbout the Companion Website 227\u003c\/p\u003e \u003cp\u003eAbout the Author 229\u003c\/p\u003e \u003cp\u003eIndex 231\u003c\/p\u003e   \u003cp\u003e\u003cb\u003eTIM RICHARDS\u003c\/b\u003e is the creator of the Psy-Fi Blog (www.psyfitec.com), a unique website dedicated to analyzing, explaining, and integrating the vast body of research on the impact of psychology in finance. As a uniquely focused resource for behavioral investing, the website attracts as many as 25,000 unique visits a month and is regularly featured in the largest information aggregators and websites in the financial industry.    \u003c\/p\u003e\u003cp\u003e\u003cb\u003eInvesting Psychology\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003eAs 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 \u003ci\u003eInvesting Psychology: The Effects of Behavioral Finance on Investment Choice and Bias\u003c\/i\u003e, 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.  \u003c\/p\u003e\u003cp\u003eStarting 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.  \u003c\/p\u003e\u003cp\u003eThe 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..\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989474164965,"sku":"NP9781118722190","price":65.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781118722190.jpg?v=1761784244","url":"https:\/\/k12savings.com\/es\/products\/investing-psychology-website-isbn-9781118722190","provider":"K12savings","version":"1.0","type":"link"}