Free PDF Investment Madness: How Psychology Affects Your Investing...And What To Do About It, by John R. Nofsinger
Considering the book Investment Madness: How Psychology Affects Your Investing...And What To Do About It, By John R. Nofsinger to review is additionally needed. You can choose the book based upon the preferred motifs that you like. It will engage you to love checking out various other publications Investment Madness: How Psychology Affects Your Investing...And What To Do About It, By John R. Nofsinger It can be likewise about the requirement that obliges you to check out the book. As this Investment Madness: How Psychology Affects Your Investing...And What To Do About It, By John R. Nofsinger, you can discover it as your reading book, even your preferred reading book. So, locate your favourite book right here as well as get the link to download guide soft documents.
Investment Madness: How Psychology Affects Your Investing...And What To Do About It, by John R. Nofsinger
Free PDF Investment Madness: How Psychology Affects Your Investing...And What To Do About It, by John R. Nofsinger
Is Investment Madness: How Psychology Affects Your Investing...And What To Do About It, By John R. Nofsinger publication your favourite reading? Is fictions? Just how's concerning history? Or is the very best seller unique your choice to satisfy your downtime? Or even the politic or spiritual publications are you hunting for currently? Here we go we offer Investment Madness: How Psychology Affects Your Investing...And What To Do About It, By John R. Nofsinger book collections that you require. Great deals of numbers of publications from many industries are provided. From fictions to science and spiritual can be searched and discovered here. You may not stress not to locate your referred publication to review. This Investment Madness: How Psychology Affects Your Investing...And What To Do About It, By John R. Nofsinger is among them.
Also the price of a book Investment Madness: How Psychology Affects Your Investing...And What To Do About It, By John R. Nofsinger is so cost effective; many individuals are truly stingy to establish aside their cash to get the publications. The various other reasons are that they feel bad and have no time to visit the book shop to search the e-book Investment Madness: How Psychology Affects Your Investing...And What To Do About It, By John R. Nofsinger to review. Well, this is contemporary age; numerous books can be got conveniently. As this Investment Madness: How Psychology Affects Your Investing...And What To Do About It, By John R. Nofsinger as well as more books, they can be got in very quick methods. You will not should go outside to obtain this book Investment Madness: How Psychology Affects Your Investing...And What To Do About It, By John R. Nofsinger
By seeing this web page, you have done the appropriate looking factor. This is your begin to choose the publication Investment Madness: How Psychology Affects Your Investing...And What To Do About It, By John R. Nofsinger that you really want. There are great deals of referred publications to read. When you intend to get this Investment Madness: How Psychology Affects Your Investing...And What To Do About It, By John R. Nofsinger as your book reading, you can click the link web page to download and install Investment Madness: How Psychology Affects Your Investing...And What To Do About It, By John R. Nofsinger In couple of time, you have actually owned your referred books as all yours.
Due to this e-book Investment Madness: How Psychology Affects Your Investing...And What To Do About It, By John R. Nofsinger is sold by on the internet, it will certainly relieve you not to print it. you could get the soft documents of this Investment Madness: How Psychology Affects Your Investing...And What To Do About It, By John R. Nofsinger to conserve in your computer, gizmo, as well as much more gadgets. It depends upon your readiness where as well as where you will certainly review Investment Madness: How Psychology Affects Your Investing...And What To Do About It, By John R. Nofsinger One that you require to constantly remember is that reviewing book Investment Madness: How Psychology Affects Your Investing...And What To Do About It, By John R. Nofsinger will certainly endless. You will certainly have going to review other publication after finishing an e-book, and also it's continually.
Why'd you fall for that Internet stock? Why do you always seem to buy high and sell low? Why does it look like everyone else is getting rich but you? As an investor, your emotions are your biggest obstacles -- cutting your returns, and raising your risks. Drawing on the new science of behavioral finance, Investment Madness will show you how to take control of your emotions -- and maximize your profits. Nofsinger shows how to think about your investments more clearly, without the overconfidence that leads many investors to take too many risks, and lower their returns. You'll gain insight into how your self-image impacts your investment decisions, and how to recognize when pride or avoiding feelings of regret are preventing you from taking appropriate action. Discover how to place your recent investment experiences -- good and bad -- in realistic perspective. Learn how to avoid the human tendency to stay with only the financial instruments you're already comfortable with. Finally, understand how the human brain handles investment memories -- and how what you remember may not always be what happened. For every investor, amateur and professional alike.
- Sales Rank: #1284863 in Books
- Published on: 2001-06-21
- Original language: English
- Number of items: 1
- Dimensions: 9.36" h x .78" w x 6.42" l, 1.09 pounds
- Binding: Hardcover
- 192 pages
From the Back Cover
WARNING: Allowing emotion to invade your investment decisions can be hazardous to your wealth.
- Think about your investments more clearly
- How overconfident investors trade too much, take too many risks, and earn lower returns
- The investment impact of your self-image
- Why avoiding feelings of regret now will cause you even greater regrets later
- Yesterday's trade, today's emotions, tomorrow's mistake
- Placing your recent investment experiences in realistic perspective
- The devil you know versus the devil you don't
- Familiarity breeds investment—but not necessarily profit
- Is your memory playing tricks with you?
- You're not alone. We'll tell you what to do about it
- Not all information is alike
- Avoiding herd mentality: your chat room, your brother-in-law, and other temptations. Remember when dotcoms were going to end business as we know it?
How your psychology reduces your profits and increases your risks-and what to do about it!
- Why'd you fall for that Internet stock?
- Why'd you keep money in cash when it could've earned far better returns elsewhere?
- Why haven't you fully funded your retirement plan when you know you should?
- Why do you always seem to buy high and sell low?
- Why does it look like everyone else is getting rich but you?
It's your psychology. It's your emotions. As an investor, they're your biggest obstacles. They cut your returns, and raise your risks. It's about time you did something about it. Investment Madness will show you how. Drawing on the new science of behavioral finance, Dr. John Nofsinger shows you how to:
- See through the "illusion of control" that makes you overconfident about your investments
- Objectively evaluate the stocks and financial instruments you've inherited
- Recognize the feelings of pride, regret, and herd behavior that lead to disaster
- Improve your "mental accounting"—and your portfolio's diversification
With today's instantaneous Internet-based trading, your psychological biases have become more dangerous than ever. Investment Madness delivers expert techniques and mental strategies that will empower you with true self-control—the decisive factor in investment success.
About the Author
DR. JOHN NOFSINGER is a finance professor at Washington State University. His 1997 paper, "Herding and Feedback Trading by Institutional Investors" written with Richard W. Sias, was awarded "Best of the Best" and "Best Paper in Investments" by the Financial Management Association. He has also done advanced research for the New York Stock Exchange and the Association for Investment Management and Research. Nofsinger holds a doctorate from Washington State University.
Excerpt. © Reprinted by permission. All rights reserved.
Introduction
We are all prone to having psychological preconceptions or biases that make us behave in certain ways. These biases influence how we assimilate the information we come in contact with on a daily basis. They also have an impact on how we utilize that information to make decisions.
Some of the decisions that are influenced by our psychological biases can have a large impact on our personal wealth - or the lack of it. I have written this book to try to show you how your own psychological biases can creep into your investment decisions and sabotage your attempts at building wealth.
WHAT TO EXPECT FROM THIS BOOK
There are five parts in this book. The first three parts illustrate different psychological biases that affect our daily lives. The chapters in these parts are structured so they are similar to each other. First, I identify the psychological trait and explain using common, daily activities. Then I examine the degree to which investors are affected by the bias. Part 4 demonstrates how the Internet exacerbates these psychological problems. Finally, the chapters in Part 5 describe what investors can do to help themselves.
The chapters in Part 1, "Not Thinking Clearly," demonstrate how investment decision making is not always rational. As you will see, people set their range of possible outcomes too narrowly. This is part of a broader problem called overconfidence. Overconfident investors trade too much, take too much risk, and earn lower returns. This topic is discussed in Chapter 2 and 3. If overconfidence causes investors to act too frequently, other biases described in Chapter 4 causes investors to fail to act when they should.
Part 2, "Emotions Rule," shows how the emotions associated with investing affect our decisions. Chapter 5 illustrates how an investor's view of himself causes him to avoid feelings of regret and to seek pride. Consequently, investors sell winner stocks too soon and hold onto loser stocks too long. Chapter 6 demonstrates that your past failures and successes have a dramatic impact on your current decision making process. Lastly, our emotional state is often affected by the social aspects of investing; we discuss this in Chapter 7.
The third part, "Functioning of the Brain," shows how the human brain's processes for interpreting and remembering information affect investors. For example, every day you are bombarded by information. The brain uses a process called mental accounting to store and keep track of important decisions and outcomes. Chapter 8 shows that as a consequence of this process, people make poor financial decisions. Discussed in Chapter 9 is one particularly important implication of how investors view portfolio diversification. The brain also uses shortcuts to quickly process information. This leads to impacts on investor memory (Chapter 10) and the problem of representativeness and familiarity (Chapter 11).
Part 4, "Investing and the Internet," discusses the interaction among the Internet, psychology, and investing. The Internet allows investors quick access to information, trading, and other investors' opinions. However, these attributes actually magnify the psychological biases. These issues are addressed in Chapters 12 and 13.
Finally, part 5, "What Can I Do About It?" discusses what the investor can do to avoid these psychological biases. The difficulty of maintaining self-control in the face of the psychological biases is illustrated in Chapter 14. The last chapter shows that planning, incentives, and rules of thumb are helpful in avoiding the common problems.
Most helpful customer reviews
4 of 6 people found the following review helpful.
Look somewhere else.
By A Customer
I don't know what I was expecting from this book.
Maybe I was hoping to read something technical on the psychology of investment. This book is not very technical. It seems full of specious arguments.
This is not about investing. Maybe this is about speculating because most of the data is concerned with trading over days or less than a year. That isn't investing. It's speculating.
I'm interested in investing. I want to know about long term actions.
I can't believe how many labels are applied to the various "investment emotions" in this book. If the type was made smaller for each "label" the book would have been even smaller than it was. Drop the cartoons that litter the book and you've got a good size article and not a book.
13 of 17 people found the following review helpful.
Investors Are Overconfident . . . and That's Costly!
By Donald Mitchell
Professor Nofsinger has written the best summary of behavioral finance concerning financial investing that I have seen. Anyone who is thinking about starting out with investing or is dissatisfied with her or his results should read the book. You will save thousands as a result!
Financial thinkers historically assumed that all investors were absolutely rational and logical. Nothing could be further from the truth. Instead, investors misperceive what is going on around them, assume the best, overestimate their competence, and let emotion whipsaw them (brilliantly displayed with a roller coaster illustration in the book). You will read simple, clear summaries of the research that document these flaws.
Here are a few examples. Those who trade the most do the worst. Go on-line, and you will trade more and hurt your returns. People enjoy the validation they get from having been right, so they prefer to sell winners too soon in order to have that experience rather than make the best economic decision (to dump a low-potential loser and get a tax loss) which will make them feel like they have failed. Most people think it is less risky to buy good management. But those stocks have huge downside risk if management stumbles, while those with lousy management have little further downside risk in many cases. The book also takes a great look at the Internet bubble.
My complaint with the book is that it is overconfident in prescribing solutions. Although the suggestions (if followed) should help, most investors will still trail the market averages. Why doesn't the book make the case for investing in indexed mutual funds? I graded the book down one star for being weak in this area.
The behavioral finance people have done great work in explaining why people do poorly. What they haven't done is run experiments on how to improve investor behavior. This is like telling people it's bad to be overweight, and suggesting that they eat less. That won't lead to weight loss for most people. I hope in the future that Professor Nofsinger will run experiments to find the best ways to help people change their bad habits to better ones. Certainly, his ideas (follow rules of thumb, pay less frequent attention, and quantify your decisions) could potentially help . . . if you can overcome the emotions and misperceptions that drove you to do the wrong thing while feeling comfortable as you did it.
After you read this book, I suggest that you next read John Bogle's Common Sense on Mutual Funds. Those prescriptions will work better than the ones here for 90 percent of investors, in my experience.
You should also think about where else in your life emotion can cause you to sabotage your self interests. How are effective are you in making economic decisions that affect your family and friends? I suspect that many of these same issues apply in other parts of your life.
Learn to take the right risks . . . to reap greater rewards from the same efforts!
9 of 10 people found the following review helpful.
wonderful introduction to behavioral finance
By Larry
I am the author of two books on investing, and Modern Portfolio Theory. I have become fascinated by the field of behavioral finance and did in fact include a section of it in my second book, What Wall Street Doesn't Want You to Know. I have read just about everything in this field, as I will have a book to be released in the Spring of 2002 focusing mainly on this subject. This book, along with Why Smart People Make Big Money Mistakes is a wonderful introduction to the field. The stories provided much insights into how we let psychology impact our investment decisions, most often in detrimental ways. I have to disagree with the one reviewer that said the author didn't provide solutions.While I think he might have been more explicit, I think the reader just missed the points. I would definitely recommend the book
Investment Madness: How Psychology Affects Your Investing...And What To Do About It, by John R. Nofsinger PDF
Investment Madness: How Psychology Affects Your Investing...And What To Do About It, by John R. Nofsinger EPub
Investment Madness: How Psychology Affects Your Investing...And What To Do About It, by John R. Nofsinger Doc
Investment Madness: How Psychology Affects Your Investing...And What To Do About It, by John R. Nofsinger iBooks
Investment Madness: How Psychology Affects Your Investing...And What To Do About It, by John R. Nofsinger rtf
Investment Madness: How Psychology Affects Your Investing...And What To Do About It, by John R. Nofsinger Mobipocket
Investment Madness: How Psychology Affects Your Investing...And What To Do About It, by John R. Nofsinger Kindle
Tidak ada komentar:
Posting Komentar