The Psychology of Investing

by Nofsinger, John R.

• ISBN13: 9780132994897
• ISBN10: 0132994895
• Edition: 5th
• Format: Paperback
• Copyright: 2012-12-29
• Publisher: Routledge

Summary

Directed primarily toward undergraduate and graduate investments students, this text also provides practical content to current and aspiring industry professionals. The Psychology of Investingis the first text of its kind to delve into the fascinating subject of how psychology affects investing. Its unique coverage describes how investors actually behave, the reasons and causes of that behavior, why the behavior hurts their wealth, and what they can do about it.

Author Biography

John Nofsinger is a Professor of Finance and the Nihoul Faculty Fellow in Finance at Washington State University. He is one of the world's leading experts in behavioral finance and is a frequent speaker on this topic at investment management conferences, universities, and academic conferences. He has often been quoted or appeared in the financial media, including The Wall Street Journal, Financial Times, Fortune, Business Week, Smart Money, Money Magazine, Washington Post, Bloomberg, Nightly Business Report (NBR), and CNBC, and other media from The Dolans to TheStreet.com.

He has authored/coauthored eight trade books, textbooks, and scholarly books that have been translated into seven different languages. John is also a highly successful scholar. He has published more than 30 articles in prestigious scholarly journals (like the Journal of Finance and Journal of Business) and practitioner journals (like the Financial Analysts Journal and Journal of Wealth Management). He has also conducted research for groups such as private investment firms, the New York Stock Exchange, the CFA Institute, and policy think-tanks. His academic research activities have won many awards.

Table of Contents

1. Psychology and Finance

2. Overconfidence

3. Pride and Regret

4. Risk Perceptions

5. Decision Frames

6. Mental Accounting

7. Forming Portfolios

8. Representativeness and Familiarity

9. Social Interaction and Investing

10. Emotion and Investment Decisions

11. Self-Control and Decision Making

12. Psychology in the Mortgage Crisis