Raise your investing and trading to a new level.
Investment and trading are essentially mind games. Winners succeed because they think differently. Join the winners’ circle by learning to avoid the common errors and biases.
- Align your investments with your temperament
- Understand crowd psychology
- Avoid common mind traps, errors and biases
- Make sound decisions at the right time
If the greatest living investor, Warren Buffett, stresses the importance of psychology, it should cause us to pay attention. This is what he wrote in his famous preface to Benjamin Graham’s investment classic The Intelligent Investor:
To invest successfully over a lifetime does not require a stratospheric IQ, unusual insights, or inside information. What’s needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework.
So, to master the market we have to learn to master ourselves. Investing and trading involve what I call serial decision-making. Every piece of new information causes us to make decisions, whether to buy, sell or do nothing. We make decisions using our mind and it is here that the battle is fought and won or lost, between investment success and failure.
The Psychology of Investing is organised into four distinct parts:
- Know Yourself – How to align your investments and your temperament
- In the Avalanche – Psychology of the market,
- Stretching our Mind – Common biases and errors in decision-making
- Catching the Tide – Practical applications of psychology
Reading this book will make you a better investor or trader. The ideas and methods in it will improve your investing and trading decision-making. No prior knowledge of psychology is needed. Everything is explained in a clear, simple style. Technical terms and jargon are avoided or clearly explained in plain English.