MarketPsych: How to Manage Fear and Build Your Investor Identity

by Richard L. Peterson, Frank F. Murtha

An investor's guide to understanding the most elusive (yet most important) aspect of successful investing - yourself.Why is it that the investing performance of so many smart people "reliably and predictably" falls short? The answer is not that they know too little about the markets. In fact, they know too little about "themselves."

Combining the latest findings from the academic fields of behavioral finance and experimental psychology with the down-and-dirty real-world wisdom of successful investors, Drs. Richard Peterson and Frank Murtha guide both new and experienced investors through the psychological learning process necessary to achieve their financial goals.

In an easy and entertaining style that masks the book's scientific rigor, the authors make complex scientific insights readily understandable and actionable, shattering a number of investing myths along the way. You will gain understanding of your true investing motivations, learn to avoid the unseen forces that subvert your performance, and build your investor identity - the foundation for long-lasting investing success.

Replete with humorous games, insightful self-assessments, entertaining exercises, and concrete planning tools, this book goes beyond mere education. "MarketPsych: How to Manage Fear and Build Your Investor Identity" functions as a psychological outfitter for your unique investing journey, providing the tools, training and equipment to help you navigate the right paths, stay on them, and see your journey through to success.

Genres: Finance

240 pages, Hardcover

First published August 31, 2010

Reviews

[David Walsh · Rating 4 out of 5]

To think critically is a practice which requires us to understand ourselves as much as it is to understand others. It is a practice which requires us to challenge our own thinking by recognizing the effect which our emotional mind has on our decision making.

The practice of critical thinking can lead us to make better investment decisions as well. To know oneself is to know one's primal tendencies and the errors that can result in making poor investment decisions. Along those lines I would recommend a quick read of the book "Market Psych:How to Manage Fear and Build Your Investor Identity".

Furthermore, for a fun exercise you might want to try the free online market psychology personality tests in the attached link.
(http://tests.marketpsych.com/personal...) They will help you to better understand yourself and how your personality profile leads to certain tendencies. Enjoy the journey!

[Russell Williams · Rating 3 out of 5]

This book is okay but it gives a lot of useless information. Also, keep in mind that this book is not timely as it was written just after the stock collapse in 2008. It's a different game now, especially with online trading so prevalent and people's expectations so high after the long run-up in the market we've seen since 2008. If you're worried about the stock market, I suggest signing on with IBD (Investor's Business Daily). They will give very timely advice to keep you losing your shirt in the stock market, so for that reason, you can have a little less fear. I know they've helped ease my anxiety far more than this book.

[Terry · Rating 4 out of 5]

A short and easy read on investment psychology. Good to review from time to time. But it’s mainly targeting retail stock investor. The suggestions are practical and can be implemented.