Best Books on Investment Psychology

Every investor is guided by both his common sense and feelings when s/he decides on a mutual fund investment. Our psychology often deters us from taking on an investment opportunity just because we are experiencing some inner resistances.

The following books provide a good starting point for overcoming the psychological barriers that hamper our development as successful investors.

"The Psychology of Investing" by Wiley Investment

More academically focused, this book provides information that has been collected from several financial seminars. The latter have been delivered by investment professionals and tutors that have significant experience in the mutual fund field. It is not guidance oriented, but instead a source for researchers on the topic.

"The Psychology of Investing" by John Nofsinger

This book successfully accumulates behavior knowledge form marketing, finance, management and economics by incorporating psychology elements.

"Investment Madness" by John Nofsinger

A second offer from John Nofsinger, in which he thoroughly explains the role of psychology in our decision making. The book provides advices for the successful mastering of our psychology in an easily readable manner. It also includes discussions of the various behavior finance matters.

"Beyond Greed and Fear"

A captivating book that touches the behavior finance research novel introductions. It will greatly assist you in your understanding of the various factors that manipulate our decision making.

"Manias, Panics and Crashes: A History of Financial Crises" by Greenspan

The book presents the opinion of the author on investment psychology. Unfortunately, he refers to several historical events assuming that the reader is well acquainted with them and thus don't provide sufficient explanation.

"Investment Psychology Explained"

The book provides a good opportunity to you to measure your psychology attitude towards investing. Additionally, it will provide you with insights of the influence of world events, company announcements and mergers on the trading attitude of investors. It also gives you advice about the ways you can benefit from these psychological vulnerabilities of the other investors.

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