While traditional finance focuses on the tools used to optimize return and minimize risk, this book shows how psychology can explain our decisions more than financial theory. Analyzing how investors behave in the real world, this is the first book of its kind to delve into the ways biases influence investment behavior, and how overcoming these biases can increase financial success.
Now in its seventh edition, this classic text features:
- An easy-to-understand structure, illustrating psychological biases as everyday behavior; analyzing their effect on investment decisions; and concluding with academic studies that show real-life investors making choices that hurt their wealth
- New content on fintech and cryptocurrencies, the role of social media in investing, generational biases, and the COVID-19 pandemic
- Experiential examples, chapter summaries, and end-of-chapter discussion questions to help readers test their practical u
