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The Anxious Investor: Mastering the Mental Game of Investing Hardcover – April 5, 2022
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A revelatory new guide to becoming a smarter investor, drawing upon behavioral psychology, economic modeling, and market history to offer practical advice for reaching your financial goals
"With the equity and fixed-income markets off to a rough start in 2022, investors might do well to review the lessons shared in Mr. Nations’s book." —Wall Street Journal
The human brain is ill-suited to making wise investment decisions. We are overconfident in our own knowledge and hunches, terrible at assessing risk, and prone to chasing financial thrills rather than measured long-term goals. Making matters worse, periods of severe market turbulence—whether the dotcom bubble of the late 90’s, the Great Recession a decade later, or the brief, vertiginous COVID crash of 2020—bring out our most irrational selves, at the exact moment when the consequences for investment mistakes are most severe.
Scott Nations has spent his career studying market volatility. His firm, Nations Indexes, is the world’s leading independent developer of volatility and option-enhanced indexes. In The Anxious Investor, he teaches readers how to understand markets, master their own fear, and make the most of their money. Drawing upon cutting-edge research in behavioral psychology, Nations shows that the secrets to excellent investing lie in mastering the quirks of human psychology. How are some investors able to make prudent decisions under pressure, while others rely on gut instinct to disastrous effect? How can we prepare for a market crash before it happens? And what can help us stay the course when the waters get choppy? Using the stories of three infamous market bubbles as his backdrop, Nations offers readers history’s hard-earned lessons about greed, volatility, and value.
Whether you’re saving for retirement, a home, or a child’s college education, The Anxious Investor offers a blueprint for achieving your goals. While we can never know exactly which financial surprises may loom ahead, here is an indispensable resource for investors to make sense of them.
- Print length288 pages
- LanguageEnglish
- PublisherWilliam Morrow
- Publication dateApril 5, 2022
- Dimensions5.5 x 0.97 x 8.25 inches
- ISBN-100063067609
- ISBN-13978-0063067608
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Editorial Reviews
Review
"[Nations] has studied the math and history of market volatility, and his new book focuses on the psychology that drives it. ... The Anxious Investor weaves the latest behavioral finance studies into an engaging narrative history. ... Investors might do well to review the lessons shared in Mr. Nations’s book—and to try to conquer the anxiety that volatility can create even for the most seasoned and thoughtful financiers." — Wall Street Journal
"I often say that fear, greed, hope, and ignorance are the four horsemen of the investment apocalypse, and note, only one is not an emotion. Emotional decisions may be made in the heat of a market meltdown, but also when markets are seemingly going to the moon. In The Anxious Investor, Scott Nations offers a close look at why these emotions are so destructive to your investment goals and offers a checklist of these emotional biases to help the reader understand and avoid them. The next time the market gets crazy, having this book by your side may help you overcome those four horsemen and stick with your long-term objectives." — JIM O'SHAUGHNESSY, New York Times Bestselling Author of What Works on Wall Street
“Financial instruments and technology have evolved since the first market bubble in 1720, but across three-hundred years of manias and panics one aspect of markets remains unchanged: human nature. Through fascinating case studies, Scott Nations reveals why investors repeatedly succumb to the same behavioral shortcomings, and how to avoid them when times get tough. Nations’ entertaining and educational style makes this book accessible for all investors interested in the psychology of markets.” — JAMIE CATHERWOOD, "The Finance History Guy"
"It's been remarked that if you don't know who you are, the stock market is an expensive place to find out. With his new book, Scott Nations explains why mastering your own mental state is the most critical variable of all." — JOSHUA BROWN, CEO of Ritholtz Wealth Management and CNBC Contributor
"Nations’s advice is grounded and practical, and the wealth of research backing it will leave readers feeling like they’re in good hands. New and seasoned investors alike will find this worth a look." — Publishers Weekly
About the Author
Scott Nations is the president of NationsShares, a financial engineering firm. He is a regular contributor to CNBC, where he frequently appears on-air to discuss markets, derivatives, and other investment topics. He is the author of two technical books for option traders, Options Math for Traders and The Complete Book of Option Spreads and Combinations. He lives in Chicago, Illinois.
Product details
- Publisher : William Morrow (April 5, 2022)
- Language : English
- Hardcover : 288 pages
- ISBN-10 : 0063067609
- ISBN-13 : 978-0063067608
- Item Weight : 12.9 ounces
- Dimensions : 5.5 x 0.97 x 8.25 inches
- Best Sellers Rank: #139,360 in Books (See Top 100 in Books)
- #144 in Wealth Management (Books)
- #536 in Introduction to Investing
- #2,423 in Success Self-Help
- Customer Reviews:
About the author

We're often not completely rational when it comes to money, and doubly so when the value of our investments is being ravaged by a stock market crash or bear market. In times like these, and every investor is nearly certain to face several bear markets (a decline in stock values of at least 20 percent) during their investing lifetime, we're at our worst, succumbing to a variety of behavioral biases which undermine our investing results. None of these biases, not a single one, helps our investing results. Each of them is detrimental to returns. My latest book, "The Anxious Investor - Mastering the Mental Game of Investing," takes readers on an enjoyable narrative examination of three important stock market bubbles and subsequent crashes, in order to highlight these biases as they actually manifest themselves when we're investing during turbulent times.
For decades, academics have tried to turn economics into a mathematically rigorous discipline more similar to physics than psychology even though economics is the study of how often-flawed human beings deal with money. "The Anxious Investor" will help readers recognize these biases in their own investing and by identifying them, the goal is to avoid falling prey to them when they can do the most damage.
My previous book, "A History of the United States in Five Crashes," examined the five modern stock market crashes (The Panic of 1907, the quintessential stock market crash in 1929, Black Monday of 1987, the 2008 Financial Crisis, and 2010's Flash Crash) in a fast paced and engaging narrative which focuses on the similarities between crashes in order to help readers understand what causes crashes and how they unfold. As Mark Twain said, and as the modern stock market crashes prove, "History may not repeat itself but it rhymes."
I'm the president and chief investment officer of Nations Indexes, the world's leading independent developer of volatility and option strategy indexes. Nations Indexes grew out of my previous work leading proprietary equity index option trading firms during 25 years as a floor trader at the Chicago Mercantile Exchange. During that work I created the Nations Indexes suite of option volatility and option cost indexes including VolDex® (ticker symbol VOLI) which measures implied volatility on the S&P 500 and TailDex® (ticker symbol TDEX) which quantifies how much investors are willing to pay to protect their portfolios. Nations Indexes has licensed VolDex® to Nasdaq which uses it as the base for the Nasdaq-100 Volatility Index (VOLQ). VOLQ futures trade at the Chicago Mercantile Exchange and VOLQ options will be available on Nasdaq exchanges soon.
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This book spoke directly to me as an anxious and emotional investor, rather than calculating and patient.