The Behavioral Investor

by: Daniel Crosby

in: Investing

Summary:

The book delves into the psychology of investing, exploring how emotions and cognitive biases often lead to irrational financial decisions. It offers insights into improving investment strategies by understanding and managing these psychological factors.

Key points:

1. Ego: Crosby notes that ego can cause investors to be overconfident, leading to too much trading, neglecting diversification, and underestimating risks, which can hurt returns.

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