The Behavioral Investor: How psychology shapes wealth, risk, and investment decisions [9781804094341]

Overview

From the New York Times bestselling author of The Laws of Wealth, an enlightening and practical guide to using psychology to inform your investments.

In The Behavioral Investor, psychologist and behavioral finance expert Dr. Daniel Crosby examines the sociological, neurological and psychological factors that influence our investment decisions. He sets forth practical solutions for improving both investment returns and behaviour, and for refining decision-making processes.

Rooted in the belief that we can only learn 'how' to invest after understanding the 'why', The Behavioral Investor is a sweeping tour of the human nature behind the art of portfolio construction. It has three parts:

- Part One – What are the sociological, neurological and physiological factors impeding good investing?
- Part Two – What are the four primary psychological tendencies that drive investment decisions?
- Part Three – An accessible framework for managing your wealth, with a psychology-driven approach.

This new edition features a new foreword and a compelling bonus chapter. Having identified the behavioral realities of investors – our competing emotional needs, wants, and desires that we bring to the market – the new chapter sets out an actionable framework for designing portfolios that embrace human psychology rather than clamp down on it.

True wealth has just as much to do with psychological as financial wellbeing. The Behavioral Investor will enrich you in the most holistic sense of the word, leaving you with essential tools for reaching your financial goals.