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Your Money and Your Brain

3.88  ·  Rating Details ·  506 Ratings  ·  50 Reviews
What happens inside our brains when we think about money? Quite a lot, actually, and some of it isn't good for our financial health. In "Your Money and Your Brain, " Jason Zweig explains why smart people make stupid financial decisions -- and what they can do to avoid these mistakes. Zweig, a veteran financial journalist, draws on the latest research in neuroeconomics, a f ...more
Hardcover, 352 pages
Published August 1st 2007 by Simon & Schuster
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Jennifer
Jun 07, 2015 Jennifer rated it really liked it
4.5 stars. A fascinating survey of how the most primitive recesses of our brains drive so many of our investment decisions. This book explores why (for instance), despite the fact that everyone knows we should "buy low and sell high," so few people are actually able to stick to that rule. When stocks collapse 25% in one day, most people panic and sell their stocks rather than buying MORE stocks (which are ON SALE!) the next day. On the other hand, when the stock market soars to new heights, most ...more
Benedict Gnaniah
I went to the library, just wanted to return an scram. While on the counter this book seemed to plead with me, well literally, to take me home. I said okay let me try you, I like this neuro science trip anyway.. Page 5 actually stopped me on my tracks the author quotes Psychologies Daniel Kahneman of Princeton University " Financial decision making is not necessarily about money, its also about intangible motives like avoiding regret or achieving pride" . I loved this .. think I will be able to ...more
Zohar - ManOfLaBook.com
Jun 08, 2010 Zohar - ManOfLaBook.com rated it it was amazing
Shelves: 2009
This behavioral finance book came recommended to me and I’m glad it did.

The book, in a very non-technical language, touches on how the body reacts physically and mentally to the changing stock market. The author explains how the brain works when faced with pleasant events (stocks going up) and unpleasant events (stocks going down) and when faced with peer pressure or an important decision. After the explanation, the book tells you simple techniques to avoid or circumvent these issues as well as
...more
John
Dec 29, 2016 John rated it really liked it
The emotional response of the reflexive brain overwhelms the analytical powers of the reflective brain. One can avert portfolio paralysis by investing gradually and automatically over time with a $-cost averaging plan.

"Found money" can do funny things to your head.

http://www.google.com/url?sa=t&rc...
Thomas
May 29, 2009 Thomas rated it really liked it
Shelves: money
How the brain reacts to stimulus as it relates to gains, gambles, losses, framing, etc. Has helped me obsess less about the stock market.
Kyle
Jan 06, 2017 Kyle rated it liked it
Some interesting moments but fairly repetitive (e.g. roughly 20 examples of your brain responding to investing the same way it responds to gambling) and hardly anything new for an investment professional.
Sanford Chee
Nov 23, 2015 Sanford Chee rated it liked it
Jason Zweig's interview
http://www.ritholtz.com/blog/2015/09/...

Key takeaways:
1. Monitor stock prices less and hence consequently trade less
2. Don't make decisions when decision fatigued
3. Stock trading can be as addictive as cocaine
4. When forecasting ask yourself: "What is the base rate?"

See also Michael Mauboussin on 'Sharpening Your Forecasting Skills'
https://doc.research-and-analytics.cs...
(a) The key to superforecasters is how they think. They are actively open-minded, intellectually humble
...more
Viktor Nilsson
It is a grand feat to describe in a simple way something really complicated such as neuroeconomics – I bet you never heard that word before. Benefiting from scientific research is hard to do for the layman until someone comes along to show its practical use to you. I bet you couldn’t build a car on your own – but you still drive one, because someone showed you how to use one. Thanks to this person, you don’t need to understand all the scientific research that went into building the car you’re dr ...more
Sid
Sep 18, 2016 Sid rated it liked it
After Reading Jason Zweig's Intelligent Investor update, I was intrigued to read more from this write. He clearly has great ideas and this book culminates them and is a great fusion of psychology and finance.

For me it felt repetitive as I have read a lot of Dan Ariely, Munger and Buffet notes, Daniel Kahneman and the like. But It definitely is a good refresher on all the good habits on how the brain works as well as a book that tries to put all different studies into one.
Jennifer
Mar 13, 2013 Jennifer rated it liked it
This book, Your Money & Your Brain is subtitled How the New Science of Neuroeconomics Can Help Make You Rich. Perhaps a bit overhyped there, but the book does make a lot of points that if you can somehow bypass human nature you can avoid the things that cost investors money.

The book is partly fascinating and partly dull. I'm into financial books, but I got a little bored with page after page (264 in total, plus appendix plus citations) of insight into various studies of the human condition d
...more
David
Apr 11, 2009 David rated it liked it
Very thorough review of a wide range of psychological research findings with some bearing on [or potential applicability to:] investment strategies, plus whenever possible a description of neuroscience findings potentially related to the phenomenon.

Author is clearly quite excited about neuroscience, but the book sort of reminded me of why I'm not in that area. I find the behavioral/cognitive phenomenon itself interesting (e.g., Gilbert's research on "affective forecasting" showing predictable e
...more
Mark
Sep 14, 2007 Mark rated it liked it
Shelves: money
I'm hoping that the ridiculous subtitle of this book, "How the New Science of Neuroeconomics Can Help Make You Rich" was foisted onto it by publisher's trying to cash in on the get rich quick book frenzy.

The idea of why so many people consistently made bad choices in this area of life fascinates me. Whether it's someone who gets into debt by buying toys and shoes or if it's an investor who always buys and sells at the wrong time - something in our make-up makes us bad at these decisions (Or we
...more
Tirath
Jun 14, 2013 Tirath rated it it was amazing
One of the best books I have read on investor/ trader psychology - the book nudges you into thinking more like an investor than a trader.

The author blends anatomical knowledge with human behaviour with such ease that a dedicated reader can learn a lot from what has been offered. Often, during the book, he offers tips on how to beat certain pitfalls of being human.

The best chapter for me would have to be the last one on Happiness - it talks about life in general and how happiness is often confus
...more
Heather
Aug 06, 2008 Heather rated it did not like it
Shelves: lost-causes
In the 60% of the book that I managed to get through, the author participated in countless experiments in which he was attached to electrodes and asked to select a card, press a button, and perform other contrived lab-based tasks to measure his brain activity when he won or lost money by performing these various activities. The groundbreaking neuroeconomic results of all of these tests: winning money = good, losing money = bad.

The author also offers helpful investing tips such as: do your resea
...more
Jeff
Apr 20, 2008 Jeff rated it did not like it
This book was trying to link the neuroscience research of the past few years with the biological process of making investment decisions. I found the book pretty flat, mostly because having read quite a bit about investing over the years, there wasn't that much new here. Basically it was just packaging the usual investment, and occasionally life, advice with MRI's and other data on what is happening in the brain when investment decisions are made. I didn't end up retaining much because I just was ...more
Joe Haynes
Sep 14, 2008 Joe Haynes rated it liked it
Very interesting book. Most interesting so far is how the mind can get excited more about the prospect of making (or losing) than about actually making the moneyh. Good comparisons are made with how people get caught up in the latest hype using mechanisms similar to buying lottery tickets and using slot machines (the same anticipation type mechanism).

The only point in the book that I did not like was the dissing of the book "Blink." This part of the book added nothing to the premise and is a co
...more
Brian
May 04, 2008 Brian rated it it was amazing
One of the best books on personal finance that I've read in well over a year. I got a LOT out of this book on the physcology of people and their money. For example, did you know that the same area of your brain goes crazy when you get an unexpected influx of cash, as when a cocain addict gets a hit?
Don't be tricked by the subtitle of this book, it's not about 'getting rich' - this book will help you understand why 'the love of money is the root of all evil.'

I will be rereading this book a few ti
...more
Anil Gudipati
May 31, 2015 Anil Gudipati rated it it was amazing
This book is a good read for 3 folks :

Those who enjoy reading Daniel Kahneman - Heuristics and Biases school of decision making.

Those who can appreciate Benjamin Graham’s - ‘Margin of safety’ approach in investing

Those who has been dosed with neurophysiology during their college or medical school

In simple terms this is a journalist attempting to shed the light on behind the scenes of our investment decision making process, its pitfalls with citations and what to do about it .

T-H-I-N-K, T-W-I-C-
...more
Kfhoz
Jun 04, 2015 Kfhoz rated it it was amazing
Jason Zweig helps you apply to personal finance what you learn in Thinking Fast and Slow by Daniel Kahneman. We all need to be reminded of the pitfalls that we, and our friends and financial advisers, can fall into based on the way that our brains work.

As an investing book with useful information, this is definitely 5 stars. If you are just browsing for an interesting non-fiction book in general to read, get Kahneman first.
Edwin
Jan 28, 2009 Edwin rated it it was ok
Shelves: science
I read the first half and quickly glimpsed through the rest.

I find a lot of things the author talked about are just common sense. People are greedy, they have fear, they think they are better than others, etc. Based on a lot of research, the author explained how the brain is wired and how it works. But if I am not interested in the internal clockwork of the brain, then there is little to learn from the book.
Ned
Jan 27, 2016 Ned rated it it was amazing
The book outlines the major psychological biases when dealing with money and investing. Furthermore it provides insights how to overcome them and not become victim of impulses. It's a great read for people who want to understand their money managing principles and how best to change them. It has investment advice mix with the psychology behind it. I found more info on the neuroscience which I liked. Overall great read that allows you to understand your decisions about money.
K
Aug 07, 2014 K rated it it was ok
Shelves: career
This book on psychological effects of the stock market reminded me of an average self-help book to investing with advice to diversify, use dollar-cost-averaging, don't panic-sell a stock/fund, watch out for the impact of fees, think in a long term time frame. Overall, not as technical as I expected on the market or psychology.
pavana Kumar Varanasi
Its a same thing as normal value investing and behavioral finance stuff. Except that for all the human behavioral mistakes he offers a neurological explanation as to why it is so. If you have already studied behavioral finance books this will get boring. Anyway we can't remember all the biological (or neurological terms) he uses in the book.
Josh
Sep 25, 2008 Josh rated it it was ok
Not much more than a compilation of scientific studies relating to the brain's effect on the way human beings think about money - also, how the way we think about money effects us physiologically. If nothing else, the book acts as a 300-page chink in the armor of brokers who are paid - almost always unsuccessfully - to beat the market.
Heather
Apr 03, 2015 Heather rated it did not like it
The authors research was thorough but presented in a dry, textbook manner. I was reading the book to help me understand my mental and emotional reactions to investing. There was so much research presented it felt like you had to do so serious sifting to find the personal application.
Arturs
Oct 28, 2014 Arturs rated it it was amazing
This book will help you understand how your brain reacts to different decisions involvong money. It will answer why sometimes you will be happier getting $100 than $150 for being lucky and my more other interesting questions.
Susan K
Jan 18, 2012 Susan K rated it really liked it
Not for everyone, but it appealed to someone like me who likes finance and is sometimes amazed that most people make many, many decisions they think are the right ones, but that are actually counter to common logic or statistical probablities.
Karren
Oct 05, 2014 Karren rated it it was ok
Shelves: abandoned
it's probably good compared to most finance books but the writing is dry & it's a tedious read. I already knew most of the concepts. I think this would make a great read as a more concise NYT article. Not so much as a book.
Adam Hecklinger
Jan 21, 2008 Adam Hecklinger rated it it was amazing
Great book on neuroeconomics. Zweig incorporates numerous studies to illustrate his contentions regarding why we do what we do when it comes to money.
Sallie
Nov 20, 2009 Sallie marked it as to-read
Shelves: nonfiction
When I grow up I think I want to be a neuroscientist or a cognitive scientist ... this stuff is just fascinating!!!
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