Investing Psychology: The Effects of Behavioral Finance on Investment Choice and Bias, + Website

Contents

Preface

CHAPTER 1 Sensory Finance

Beating the Bias Blind Spot

Illusory Pattern Recognition

Superstitious Pigeons—and Investors

The Super Bowl Effect: If It Looks Too Good to Be True, It Is

Your Financial Horoscope: Forecasting and the Barnum Effect

Uncertainty: The Unknown Unknowns

Illusion of Control

Stocks Aren't Snakes

Herding

Availability

Assuming the Serial Position

Hot Hands

Financial Memory Syndrome

Attention!

The Problem with Linda

Representation

The Seven Key Takeaways

Notes

CHAPTER 2 Self-Image and Self-Worth

The Introspection Illusion

Blind Spot Bias, Revisited

Rose-Colored Investing

Past and Present Failures

Depressed but Wealthy

Disposed to Lose Money

Loss Aversion

Anchored

Two Strangers

Hindsight's Not So Wonderful

Deferral to Authority

Emotion

Black Swans

Dirty Money, Mental Accounting

A Faint Whisper of Emotion

Psychologically Numbed

Martha Stewart's Biases

Retrospective

Annual Returns

Nudged

Mindfulness

The Seven Key Takeaways

Notes

CHAPTER 3 Situational Finance

Disposition vs. Situation

Beauty is in the Eye of the Investor

Angels or Demons?

Merely Familiar

Lemming Time

Story Time

Wise Crowds?

Adaptive Markets

George Soros' Reflexivity

Grow Old Quickly

Speaking Ill

The Power of Persuasion

SAD Investors

Sell in May …

The Mystery of the Vanishing Anomalies

Tweet and Invest

Fire!

The Rise of the Machines

The Seven Key Takeaways

Notes

CHAPTER 4 Social Finance

Conform—or Die

Groupthink

Motivated Reasoning

Polarized

A Personal Mission Statement: Social Identity ...