Investing and the Irrational Mind

Book Review

Investing and the Irrational Mind: Rethink Risk, Outwit Optimism, and Seize Opportunities Others Miss by Robert Koppel shows how to get beyond the negative psychological impulses that prevent investors from making money in the stock market. Koppel is a behavioral finance expert who was a former member of the Chicago Mercantile Exchange, a hedge fund partner, and president of his own division at Rand Financial. He shows why your brain gets negative messages when investing.

One of the important features of the book is how he shows how to adjust your investment objective based on your psychology and how to avoid irrational thoughts when making decisions. He also covers intuition, and how it can be an important and useful tool.

Chapter 11, Taking a Loss, is an important one as this is something that most investors hate to do. Check out the tables that shows the physical and emotional symptoms of taking a loss, along with the follow-up tables relating to visual, auditory, and sensory imagery.

If you want a book that can help you succeed in the stock market using your mind and psychology, then you should delve into Investing and the Irrational Mind: Rethink Risk, Outwit Optimism, and Seize Opportunities Others Miss.