Customer Reviews

Psychology of Investing (3rd Edition)

5 star:		(6)
4 star:		(4)
3 star:		(1)
2 star:		(0)
1 star:		(1)

 

 

Most of the typical psychology of trading books just regurgitate the same 'ol same 'ol. This one hits all the bases with examples to back them up - and no fluff. I really appreciated how everything was condensed and to the point without having to read a lengthy discourse on each topic. That made it easy to digest the material and left me with a lot to think about. This was the best book I've read in it's class. Well worth reading.

This book contains a good summary of the different ways in which what we think affects investing decisions we make. I liked the fact that the book is short and to the point and does not use psychological jargon. I found it quite insightful and could identify with several of the traits and thought processes the book describes, I would recommend it to anyone who makes their own investment decisions

I really liked this book. Nofsinger makes a clear and concise case against the existence of a rational investing "homo economicus", a key assumption of modern portfolio theory. The book is well footnoted and a good place to start learning the underlying tenants of behavioral finance.

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

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.

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.

This book is one for all who need to understand the psychology of why we make the choices we do. This book is a very light read and excellent insight into why we make some of the choices we make when it comes to our finances and investment choices. Great read.

It's a quick and easy read, getting to the point and keeping from using excessive prose to get the information across. Certainly an approachable text for novices and seasoned folk alike.

My only issue with the book, at no obvious fault of the author, is that the information provided is very similar to the contents of Think Twice. I guess there could be a good deal of common themes found in a number of books written on the subject.

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.

Mr. Nofsinger starts his book by pointing out: "...the field of finance has evolved based on the following two assumptions.

* People make rational decisions.
* People are unbiased in their predictions about the future."

He then spends the next 107 pages essentially debunking these assumptions. What results is a brief, usable list of the most common psychological impediments to successful investing.

I keep this book on my desk and regularly reference it. The concepts are easy to understand but are counter-intuitive. Nevertheless, they explain why general investors and many "professionals" buy high and sell low. Even having taken investor psych courses and being in the business for a long while, I find myself, my colleagues, and clients making the same mistakes over and over again.

The book is simply written, which makes it easy to read and reference. Some have claimed that it is too simple or that the relationships described are too casual. Not true. Nofsinger footnotes his claims quite well and if you want to examine the regressions, sample information, confidence levels, etc., you can take as much time as you like to confirm most of the relationships he describes. However, this book is useful in that it summarizes all of the most common mistakes people make in a readable, understandable way. That allows you to remind yourself not to be so quick to make the same mistakes.

Bravo, Mr. Nofsinger.