The Physiology Of Emotional And Irrational Investing
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| Author | : Elesa Zehndorfer |
| Publisher | : Routledge |
| Total Pages | : 145 |
| Release | : 2018-02-13 |
| Genre | : Business & Economics |
| ISBN | : 1351978810 |
The financial markets are a rollercoaster and this book follows the same theme the seduction of money, our ruinous, heady and high stakes pursuit of it, the incredible fortunes and calamitous losses that have been made in its name, the new and significant threat of retail (armchair) investors wanting their piece of the pie, and the perpetual and foolish mismatch that has always existed and will always exist between our evolutionary programming and the design of the financial markets. The dominant theme that runs throughout the book ('Working out Wall Street') is actually a play on words, and relates both to the need to work out why Wall Street traders act so irrationally (e.g. using behavioural finance and evolutionary design to explain herding and panic selling), and the need to use physiological and sport science-related approaches to explain why working out (i.e. adopting exercise and diet-related practices usually applied to athletes) can significantly counter these behaviours. The phrase 'animal spirits' utilised in the concluding chapter title ('Taming Animal Spirits') refers to the seminal work of John Maynard Keynes in his 1936 classic work The General Theory of Employment, Interest and Money and the idea that human emotions-animal spirits- remain a significant driver in (irrational and emotional) investing. The rationale for this book is clear; behavioural finance and neurofinance have opened the floodgates in terms of recognising the role of emotional investing in cyclical boom-and-bust scenarios but what is still missing is an answer to the question So what do we do about it? This book seeks, in as compelling and entertaining a fashion as possible, to provide that answer.
| Author | : Pauline Yong |
| Publisher | : Trafford Publishing |
| Total Pages | : 93 |
| Release | : 2013-07-16 |
| Genre | : Business & Economics |
| ISBN | : 1466998970 |
What drives investor behaviour? We would all like to think we always behave rationally but in reality we are often swayed by emotions. Most financial theories are based on the idea that everyone takes careful account of all available information before making investment decisions. However, researchers have uncovered a surprisingly large amount of evidence that this is not the case. Dozens of examples of irrational behaviour and repeated errors in judgement have been documented in academic studies. This book gives plenty of examples of investment mistakes, and analyses them from a Behavioural Finance perspective. Behavioural Finance is the study of the influence of psychology on the behaviour of investors and their subsequent effect on the markets. It combines the discipline of psychology and economics to explain why and how people make irrational or illogical decisions when they make investment decisions.
| Author | : Lawrence E. Lifson |
| Publisher | : John Wiley & Sons |
| Total Pages | : 218 |
| Release | : 1999-03-25 |
| Genre | : Business & Economics |
| ISBN | : 9780471183396 |
Dieses maßgebende Buch aus der Schmiede der Harvard-Universität stützt sich auf Erkenntnisse und Ideen führender Experten aus den Bereichen Investment und Psychologie. Die Beiträge stammen u.a. von Abby Joseph Cohen, stellvertretender Vorstandsvorsitzender bei Goldman-Sachs, Samuel Hayes von der Harvard Business School und von Mark Hubert, Kolumnist beim Forbes Magazine. Diskutiert werden u.a. die psychologische Aspekte von Risiko, Massenpsychologie und geschlechtsbedingten Unterschieden im Investmentgeschäft. Mit einem Vorwort von John Train, dem Autor zahlreicher Bestseller zur Geldanlage. (11/97)
| Author | : H. Kent Baker |
| Publisher | : John Wiley & Sons |
| Total Pages | : 645 |
| Release | : 2014-02-10 |
| Genre | : Business & Economics |
| ISBN | : 1118492986 |
WINNER, Business: Personal Finance/Investing, 2015 USA Best Book Awards FINALIST, Business: Reference, 2015 USA Best Book Awards Investor Behavior provides readers with a comprehensive understanding and the latest research in the area of behavioral finance and investor decision making. Blending contributions from noted academics and experienced practitioners, this 30-chapter book will provide investment professionals with insights on how to understand and manage client behavior; a framework for interpreting financial market activity; and an in-depth understanding of this important new field of investment research. The book should also be of interest to academics, investors, and students. The book will cover the major principles of investor psychology, including heuristics, bounded rationality, regret theory, mental accounting, framing, prospect theory, and loss aversion. Specific sections of the book will delve into the role of personality traits, financial therapy, retirement planning, financial coaching, and emotions in investment decisions. Other topics covered include risk perception and tolerance, asset allocation decisions under inertia and inattention bias; evidenced based financial planning, motivation and satisfaction, behavioral investment management, and neurofinance. Contributions will delve into the behavioral underpinnings of various trading and investment topics including trader psychology, stock momentum, earnings surprises, and anomalies. The final chapters of the book examine new research on socially responsible investing, mutual funds, and real estate investing from a behavioral perspective. Empirical evidence and current literature about each type of investment issue are featured. Cited research studies are presented in a straightforward manner focusing on the comprehension of study findings, rather than on the details of mathematical frameworks.
| Author | : Prudence Gourgeuchon |
| Publisher | : |
| Total Pages | : |
| Release | : 2018-11 |
| Genre | : |
| ISBN | : 9781732252400 |
A psychoanalytic perspective on the emotional and irrational forces that affect decisions gives professional investors an uncommon edge.
| Author | : John R. Nofsinger |
| Publisher | : Routledge |
| Total Pages | : 205 |
| Release | : 2020-03-30 |
| Genre | : Business & Economics |
| ISBN | : 1000050203 |
Why do people’s financial and economic preferences vary so widely? ‘Nurture’ variables such as socioeconomic factors partially explain these differences, but scientists have been discovering that ‘nature’ also plays an important role. This is the first book to bring together these scientific insights for a holistic view of the role of human biology in financial decision-making. Geneticists are now examining which genetic markers are associated with financial and economic preferences. Neuroscientists are now determining where in the brain financial decisions are made and how that varies between people. Endocrinologists relate the level of different hormones circulating in the body to financial risk-taking. Researchers are exploring how physiology and environmental conditions influence investment decisions, and how three types of cognitive ability play essential roles in investment success. This exciting and relevant work being done in these academic silos has generally not been transmitted among the scientific areas, or to industry. For the first time, this book integrates all these areas, explaining the myriad ways in which a person’s biology influences their investing decisions. Financial analysts, advisors, market participants, and upper-level undergraduate and postgraduate students of behavioral finance, behavioral economics, and investing will find this book invaluable, enabling a deeper understanding of investors’ decision-making processes. To further ensure this new material is accessible to students, PowerPoint slides are available online for instructors’ use.
| Author | : James Montier |
| Publisher | : John Wiley & Sons |
| Total Pages | : 240 |
| Release | : 2010-03-30 |
| Genre | : Business & Economics |
| ISBN | : 0470712031 |
A detailed guide to overcoming the most frequently encountered psychological pitfalls of investing Bias, emotion, and overconfidence are just three of the many behavioral traits that can lead investors to lose money or achieve lower returns. Behavioral finance, which recognizes that there is a psychological element to all investor decision-making, can help you overcome this obstacle. In The Little Book of Behavioral Investing, expert James Montier takes you through some of the most important behavioral challenges faced by investors. Montier reveals the most common psychological barriers, clearly showing how emotion, overconfidence, and a multitude of other behavioral traits, can affect investment decision-making. Offers time-tested ways to identify and avoid the pitfalls of investor bias Author James Montier is one of the world's foremost behavioral analysts Discusses how to learn from our investment mistakes instead of repeating them Explores the behavioral principles that will allow you to maintain a successful investment portfolio Written in a straightforward and accessible style, The Little Book of Behavioral Investing will enable you to identify and eliminate behavioral traits that can hinder your investment endeavors and show you how to go about achieving superior returns in the process. Praise for The Little Book Of Behavioral Investing "The Little Book of Behavioral Investing is an important book for anyone who is interested in understanding the ways that human nature and financial markets interact." —Dan Ariely, James B. Duke Professor of Behavioral Economics, Duke University, and author of Predictably Irrational "In investing, success means¿being on the right side of most trades. No book provides a better starting point toward that goal than this one." —Bruce Greenwald, Robert Heilbrunn Professor of Finance and Asset Management, Columbia Business School "'Know thyself.' Overcoming human instinct is key to becoming a better investor.¿ You would be irrational if you did not read this book." —Edward Bonham-Carter, Chief Executive and Chief Investment Officer, Jupiter Asset Management "There is not an investor anywhere who wouldn't profit from reading this book." —Jeff Hochman, Director of Technical Strategy, Fidelity Investment Services Limited "James Montier gives us a very accessible version of why we as investors are so predictably irrational, and a guide to help us channel our 'Inner Spock' to make better investment decisions. Bravo!" —John Mauldin, President, Millennium Wave Investments
| Author | : John R. Nofsinger |
| Publisher | : Routledge |
| Total Pages | : 161 |
| Release | : 2016-07 |
| Genre | : Business & Economics |
| ISBN | : 1315506564 |
A supplement for undergraduate and graduate Investments courses. See the decision-making process behind investments. The Psychology of Investing is the first text of its kind to delve into the fascinating subject of how psychology affects investing. Its unique coverage describes how investors actually behave, the reasons and causes of that behavior, why the behavior hurts their wealth, and what they can do about it. Features: What really moves the market: Understanding the psychological aspects. Traditional finance texts focus on developing the tools that investors use for calculating risk and return. The Psychology of Investing is one of the first texts to delve into how psychology affects investing rather than solely focusing on traditional financial theory. This text’s material, however, does not replace traditional investment textbooks but complements them, helping students become better informed investors who understand what motivates the market. Keep learning consistent: Most of the chapters are organized in a similar succession. This approach adheres to following order: -A psychological bias is described and illustrated with everyday behavior -The effect of the bias on investment decisions is explained -Academic studies are used to show why investors need to remedy the problem Growing with the subject matter: Current and fresh information. Because data on investor psychology is rapidly increasing, the fifth edition contains many new additions to keep students up-to-date. The new Chapter 12: Psychology in the Mortgage Crisis describes the psychology involved in the mortgage industry and ensuing financial crisis. New sections and sub-sections include “Buying Back Stock Previously Sold”, “Who Is Overconfident,” "Nature or Nurture?”, "Preferred Risk Habitat," "Market Impacts," "Language," and “Reference Point Adaptation.”
| Author | : Tim Richards |
| Publisher | : |
| Total Pages | : 256 |
| Release | : 2014 |
| Genre | : Business enterprises |
| ISBN | : |
Discover how to remove behavioral bias from your investment decisions For 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. Investing Psychology + Website 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. Offers 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 Explores several different types of behavioral bias, which pulls back the curtain on any illusions you have about yourself and your investing abilities Provides real-world advice, including: Don't compete with institutions, always track your results, and don't trade when you're emotional, tired, or hungry Investing Psychology 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.
| Author | : John R. Nofsinger |
| Publisher | : |
| Total Pages | : 148 |
| Release | : 2011 |
| Genre | : Business & Economics |
| ISBN | : |
"This is the only textbook that describes (1) how investors actually behave, (2) the reasons and causes of that behavior; (3) why the behavior hurts their wealth; and (4) what they can do about it."--Jacket.
