Investing well is anything but an intuitive process. One must be able to determine decisively how much to save and invest, as well as where to best channel these funds to reap maximum returns. These are the basic decisions which determine the wealth of the individual, household, or family in the long-term.
Unfortunately, informal decisions, either instinctive or bred by personal experience, do not always provide the golden rule for navigating the tricky waters of financial investments. Common cognitive mistakes depreciate the quality of our reasoning: Emotions can lead to confused decisions or prevent wise choices; Unconscious imitation and social comparison encourage the duplication of actions whose efficiency is far from sure.
Published by John Wiley & Sons (Asia) Pte Ltd, 50 Psychological Experiments for Investors (ISBN: 978-0470-82383-5) looks through the lenses of behavioral economics to investigate how people in the real world make their economic decisions. Since its beginnings in the 1980s, behavioral economics has highlighted clear differences between the economic and financial behavior of real individuals and what they would do if they were completely rational. Here, award-winning author Mickäel Mangot presents over 50 experiments run by scientists on different psychological factors affecting investment decisions. Through lighthearted human examples, he then identifies 57 simple but very damaging investment mistakes.
This insightful book offers “self-help” for investors to modify their asset allocation decisions based on an understanding of psychoanalysis, learning theory, social psychology, and creative visualization. In an easy-to-use format that is free from technical terminology, the book provides a concise, sensible summary of psychological mistakes made by most investors and offers corrective steps the self-questioning investor can take to improve his or her investment decisions and be on the road to greater trading success!
About the Author
Mickäel Mangot is Adjunct Professor at ESSEC Business School in Singapore. His works focus on behavioral finance and its applications for individual investors and professionals. Mickäel has authored several books on the psychology of investors in financial markets. In France, his book Pyschologie de l’Investisseur et des Marchés Financiers was awarded the 2006 Turgot Prize for the best book in financial economics. He conducts seminars and trainings for major financial companies in Paris, Geneva and Singapore, targeting private bankers, fund managers and traders. Mickäel also gives educational conferences to individual investors to help them monitor and improve their financial behavior. He contributes regularly to economic and financial newspapers providing insights into the psychology of investors in different market environments.
He earned his MBA and PhD in Economics from Essec Business School and the University of Paris Pantheon -La Sorbonne, respectively.
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