Your Money and Your Brain
Library · Psychology of money
- Author: Jason Zweig
- FinSimLab rating: 3/5
- Reading: Moderate
- Finance level: Intermediate
- Published: 2007
What neuroscience explains about how the brain reacts to gains, losses and risk.
What it covers
Zweig, a financial columnist, applies neuroscience research to investing decisions: why we see patterns where there are none and how the hope of winning and the fear of losing shape our choices. Each chapter ends with practical guidelines for investing on fewer impulses.
What you will learn
- Why the brain looks for patterns in random data.
- How fear and euphoria distort the perception of risk.
- Which personal rules help you avoid acting on impulse.
Who it is for
Investors who already have a portfolio and want to understand how they react to rises and falls.
Concepts
Biases, Financial behaviour, Risk
What you will not learn
A complete investment strategy: it focuses on your reactions.
Already read a book on this?
- It shares emotions and behaviour when investing with The Psychology of Money. If you have read The Psychology of Money, this one mainly adds the neuroscience of reactions and concrete personal rules. The Psychology of Money
Related Academy guides
- FOMO Investing: How Fear of Missing Out Destroys Portfolios
- Panic Selling: Why We Sell at the Worst Possible Moment
- Buying the Dip: How to Accumulate When Markets Fall
Put it into practice
More psychology of money books
Descriptions written by FinSimLab for educational purposes. They do not summarise the books and are not investment advice.