Behavioral Investing

The psychological approach to investmentsIn this book, psychologist and asset manager Daniel Crosby examines the full range of sociological, neurological, and psychological factors influencing our investment decisions, and offers practical strategies to enhance returns and improve stock market performance. Readers... are presented with the most comprehensive analysis to date of the behavioral aspects and specific recommendations for decision-making processes and overcoming the fatal flaws that afflict most investors.The book consists of four parts:1. An explanation of the sociological, neurological, and physiological factors that hinder the making of rational investment decisions. Readers will gain a better understanding of how external conditions subtly influence our choices.2. A discussion of four main psychological tendencies that impact investment behavior. Readers will be able to analyze their own behavior, rid themselves of overconfidence, and familiarize themselves with mechanisms that allow for objective evaluation of their decisions.3. Practical implementation of the principles discussed in the first and second parts.4. An introduction to the "third way" of investing, based on reality with consideration of contextual and behavioral shortcomings. Readers will gain a better understanding of the psychological underpinnings of popular investment approaches, such as value and momentum investing, and understand why all forms of successful investing are grounded in psychological factors.Wealth, in essence, reflects both financial and psychological well-being. The goal of this book is not only to enrich the reader in the literal sense but also to equip them with tools for increasing wealth and knowledge.