Inside the Investor's Brain

Unique insights into how the mind of an investor operates and
how developing emotional awareness leads to long-term success

Inside the Investor's Brain provides readers with specific
techniques for understanding their financial psychology, so that
they can improve their own performance and learn how to outsmart
other investors. Chapter by chapter, author Richard Peterson
addresses various mental traps and how they play a role in
investing. Through examples, such as a gambling experiment with
playing cards, the author shows readers how being aware of the
subconscious can separate the smart investors from the average
ones. This book also contains descriptions of the work of
neuroscientists, financial practitioners, and psychologists,
offering an expert's view into the mind of the market. Innovative
and accessible, Inside the Investor's Brain gives investors the
tools they need to better understand how emotions and mental biases
affect the way they manage money and react to market moves.

Auteur

RICHARD L. PETERSON, MD, is a Managing Partner of Market Psychology Consulting, an Associate Editor at the Journal of Behavioral Finance, a psychiatrist, and a former trader. He has written for a number of publications, including the Journal of Psychology and Financial Markets, and was a contributor to the book Risk Management: A Modern Perspective. Peterson holds seminars around the world for investment professionals and has two active Web sites: www.marketpsych.com and www.richard.peterson.net. He received his medical and bachelor's degrees from the University of Texas, completed his psychiatry training in the San Francisco Bay Area, and performed postgraduate neuroeconomics research at Stanford University.

Résumé
Unique insights into how the mind of an investor operates and how developing emotional awareness leads to long-term success Inside the Investor's Brain provides readers with specific techniques for understanding their financial psychology, so that they can improve their own performance and learn how to outsmart other investors. Chapter by chapter, author Richard Peterson addresses various mental traps and how they play a role in investing. Through examples, such as a gambling experiment with playing cards, the author shows readers how being aware of the subconscious can separate the smart investors from the average ones. This book also contains descriptions of the work of neuroscientists, financial practitioners, and psychologists, offering an expert's view into the mind of the market. Innovative and accessible, Inside the Investor's Brain gives investors the tools they need to better understand how emotions and mental biases affect the way they manage money and react to market moves.

Contenu
Preface. Acknowledgments.

About the Author.

Introduction.

Part I: Foundations.

Chapter 1: Markets on the Mind.

Analysts and Dart Boards.

Developing Better Expectations.

The Wisdom of the Collective

Meteorological Anomalies and Other Animal Spirits.

Sentiment.

Chapter 2: Brain Basics.

Damasio and the Iowa Gambling Task.

The Brain: Structure and Function.

The Brain-Damaged Investor.

Research Methods.

Neuroscience Preview.

Chapter 3: Origins of Mind.

Emotions and Perceptions.

Expectations and the Comparator.

Counterfactual Comparisons.

Beliefs and Expectations: The Placebo Effect.

Making Sense of the News.

Self-Deception.

Emotional Defense Mechanisms and Motivated Reasoning.

Chapter 4: Neurochemistry.

Introducing the Neurotransmitters.

Serotonin.

Dopamine.

Norepinephrine.

Opiates.

Stress Hormones.

Caffeine.

GABA, Acetylcholine, and Omega-3 Fatty Acids.

The Chemistry of (Financial) Mental Disorders.

The Neurochemistry of Financial Performance.

Serotonin and Market Bubbles.

Recreational Drugs and Alcohol.

Alcohol.

Cocaine.

Part II: Feelings and Finances.

Chapter 5: Intuition.

Analysis and Intuition.

Investment Practice.

What Does Your "Gut" Tell You?

Listening Without Thinking.

Intuition and Emotion in Investing.

Emotional Intelligence.

Subliminal Emotion.

Stirring the Unconscious.

Chapter 6: Money Emotions.

Emotional Biases.

The Difference between Positive and Negative Feelings.

Regret as a Self-Fulfilling Prophecy.

An Amicable Divorce.

Sadness and Disgust.

Fear and Anger.

Projection Bias.

Managing Feelings.

Summary.

Chapter 7: Excitement and Greed.

Brokers Kindle Irrational Exuberance.

The Anatomy of Stock Hype.

Greed: The Basics.

The BIAS Task.

The Nucleus Accumbens.

Excited About a Good Deal.

Improving Biased Decision Making.

Greed in the Markets.

Chapter 8: Overconfidence and Hubris.

The Psychology of Hubris.

Overconfidence.

Illusion of Control.

Winning Changes the Brain.

The Neurochemistry of Exploration.

One Who Knows: Christian Siva-Jothy.

Confidencethe "Good" Kind.

Solutions.

Chapter 9: Anxiety, Fear, and Nervousness.

Climbing a Wall of Worry.

Dread in the MRI.

Nature versus Nurture.

It's All in Your Head.

Empathy Gaps.

Pain Relief.

Investment Lessons.

Of Hurricanes, Risk Perceptions, and Opportunity.

Summary.

Chapter 10: Stress and Burnout.

Stress.

Cramer on Stress.

Choking for Rupees.

Which Goes Wrongthe Brains or the Brawn?

Stress and Trend Perception.

Neurochemistry of Stress.

Biological Effects of Stress.

Adrenaline Junkies.

Managing Investment Stress.

Summary.

Chapter 11: Love of Risk.

Knowing When to Fold 'Em.

Pathological Gambling.

The Gambler's Brain.

Ought to Know Better.

Reducing Gambling.

Summary.

Chapter 12: Personality Factors. The "Big ...