It is rarely that you would see investing books talk about psychology. Some authors simply do not see the idea of integrating psychology in their stock market books. That is because they are used to seeing strategies, charts and numbers when doing trade and behavioral aspect of trading was neglected. However, there was a book that I read that talks about psychology as one of the major aspect those traders and investors must know. It will guide you on how to use behavior as tool to effectively invest and plan your further investment opportunities.
The book was written by a respected and well known advisor who made countless bestselling books on investments. The author has the credibility and authority to back his claims that there is indeed psychology in investment. You need to be able to observe your own actions and behaviors at the same time be observant of what is happening around you and that is the behavior of trade. (more…)