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Think Like the Great Investors: Make Better Decisions and Raise Your Investing to a New Level

Book Description

Achieve a new level of investing and trading success by defeating your worst enemy—yourself

Successful trading relies on three vital skills: market analysis, money management, and decision-making. The first two are straightforward skills anyone can learn, but the third is much more difficult. Your ability to make the right decisions isn't based on hard facts, but psychological realities like your own temperament, your own biases, and the biases of other traders. In essence, you can only master the stock market when you master yourself first, and that starts with making the right decisions habitually. Think Like the Great Investors is organised into four distinct parts that show you how to understand your own temperament, the psychology of the market as a whole, your own biases and decision-making errors, and how to practically apply your understanding of these factors into your decision-making system.

  • Written by highly respected investment teacher, speaker, and writer Colin Nicholson

  • Ideal for both inexperienced traders who want to lower their risk as well as experienced traders who lack that one final piece in the trader's skillset

For anyone looking for that final piece of the investing puzzle, the answer is right here. With Think Like the Great Investors, you'll leap beyond the final hurdle to super-successful investing . . . yourself.

Table of Contents

  1. Cover
  2. Title Page
  3. Table of Contents
  4. Foreword
    1. About the author
    2. Important note
  5. Part I: Stretching our mind
    1. Chapter 1: Shaping our destiny
    2. Chapter 2: Men and women (overconfidence)
    3. Chapter 3: I am absolutely certain (overconfidence, confirmation and availability)
    4. Chapter 4: Mine, all mine (mental accounting)
    5. Chapter 5: Why we never learn (reinforcement and punishment)
    6. Chapter 6: Love is blind (cognitive dissonance)
    7. Chapter 7: A little knowledge is dangerous (representativeness)
    8. Chapter 8: It must be tails next (the gambler's fallacy)
    9. Chapter 9: Dangerous rewards (random reinforcement)
    10. Chapter 10: How much is it? (anchoring)
    11. Chapter 11: Reconstruction (hindsight)
    12. Chapter 12: Why we get it wrong (disposition effect and prospect theory)
    13. Chapter 13: We cannot change the past (the sunk cost fallacy)
    14. Chapter 14: I remember it all too well (availability revisited)
    15. Chapter 15: What goes up . . . (small numbers, reversion to the mean)
    16. Chapter 16: What is it worth? (overreaction)
    17. Chapter 17: He who hesitates is last (inertia)
    18. Chapter 18: What do you want to do? (regret)
    19. Chapter 19: Ask why not? (confirmation revisited)
    20. Chapter 20: I want it now (impulsiveness, immediate gratification)
    21. Chapter 21: Tell me why (randomness)
    22. Chapter 22: It can't happen (normalcy)
  6. Part II: In the avalanche
    1. Chapter 23: Mob rule (crowds)
    2. Chapter 24: Notes and commentary on Gustave Le Bon's The Crowd
    3. Chapter 25: Contrary to popular belief . . .
  7. Part III: Catching the tide
    1. Chapter 26: Nine keys
    2. Chapter 27: Failure traits
    3. Chapter 28: Dealing with loss
    4. Chapter 29: Plan to succeed
    5. Chapter 30: Seven investing sins
    6. Chapter 31: The wall
    7. Chapter 32: Capitulation
    8. Chapter 33: Tough going
    9. Chapter 34: Be early
    10. Chapter 35: Blinded by fear
    11. Chapter 36: Conquer fear