While traditional finance focuses on the tools used to optimize return and minimize risk, this book shows how psychology can explain our decisions more than financial theory. Analyzing how investors behave in the real world, this classic text delves into the ways biases influence investment behavior, and how overcoming these biases can increase financial success. Now in its eighth edition, the book features: * an easy-to-understand structure, illustrating psychological biases as everyday behavior; analyzing their effect on investment decisions; and concluding with academic studies that show real-life investors making choices that hurt their wealth * fully updated content to reflect the latest research in the field * a new chapter on FinTech and behavioral finance, as well as coverage of AI considerations * experiential examples, chapter summaries, and end-of-chapter discussion questions to help readers test their practical understanding * online supplements comprising PowerPoint slides for both students and lecturers. The Psychology of Investing will prove fascinating and educational for advanced students in behavioral finance, investment and portfolio management classes, as well as investors, financial planners and aspiring finance professionals.
"John Nofsinger's The Psychology of Investing has become a modern classic. The 7th edition features new content on fintech and cryptocurrencies, the role of social media in investing, generational biases, and the Covid-19 pandemic. Anyone interested in keeping abreast of the latest developments on the behavioral side of investing should find this latest edition indispensable."
- H. Kent Baker, University Professor of Finance, American University
- H. Kent Baker, University Professor of Finance, American University







