Investing Psychology + Website: The Effects Of Behavioral Finance On Investment Choice And Bias

Investing Psychology + Website is every investor's guide to behavioral investing, teaching them how to profit from the astounding findings of fifty years of research into how our psychological biases affect our financial decision making. The book is an in-depth guide to using this research to complement the fundamentals of stockmarketing investing and will help improve the performance of every investor confused by the vast complexity of the financial marketplace.The problem--behavioral bias--is caused by our brains, because they’re specifically designed to keep us safe in the environments within which we evolved, not in the situations within which modern finance places us. The research on this subject by psychologists, biologists, physicists and economists has opened up a whole new vista of remarkable evidence which is loosely grouped together under the heading of “behavioral biases.” We now understand scores of these biases and Investing Psychology + Website provides a whistle-stop tour of them, kicking away the readers’ expectations one belief at a time, before providing a practical approach to overcoming these issues. Chapter by chapter, the book offers lessons that build towards a detailed checklist providing a practical framework for investors, leaving readers with a logical structure for making investment decisions. By the end of the book the reader will understand the fundamental biases driving their investing behavior and have a practical toolkit to effectively manage them. Together these can turn their losses into profits and their irrational, money-losing investing decisions into logical, money-making ones.

TIM RICHARDS 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.