Psychology of Investing (3rd Edition)

This book is the first of its kind to delve into the fascinating and important subject of the psychology affecting investments. 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. Chapter topics include overconfidence, fear of regret and seeking pride, considering the past, mental accounting, forming portfolios, representativeness and familiarity, social interaction and investing, mood and investing, and self control and decision making. anyone who wants to invest (either professionally or personally), as well as portfolio managers, fund managers, pension managers, financial advisers, brokers, financial planners, traders, financial analysts, and CPAs.

Nofsinger is a good although not exhaustive overview of the literature on behavioral finance. Used at universities but easy and fun to read. Recommended.

I got this book in a decent time period and the condition was great.

I purchased this book for my Behavioral Finance class and I have recommended this book to other investors and they loved it so much they bought their own book.

The book is worth reading and studying for any serious investor. However, the researchers cited assume causality too much. For example, they assume that if an investor sells on gains and holds if a stock has gone down that the investor is afraid to admit defeat. That could be true, or the investor may have a deliberate strategy to "wait out" dips in price until s/he can sell at a gain. Or, the investor could have looked at earnings and business soundness and logically concluded that "Mr. Market" will recognize the higher value of the stock at some point, so why sell now? All of this depends on the strategy you're following, and what your rules of investing are.

Kind of a basic look at behavioral finance. Easy too read, not very long (approx. 110 pgs). Overall a good introduction to the tendenecies people have when investing.