Post by 4aapl on Apr 25, 2022 20:40:57 GMT -8
I had mixed opinions on this book. Overall it was good, but not great. Parts of it were up a level on vocab, not really adding to it but enough to make a complex subject even tougher to understand, or at least pay attention to. Still, if not up to date on many behavioral finance books, this would be a good one. While I don't feel I am very well read on the subject, it was amazing to me how many of the studies or books cited were ones that I had read or heard about previously.
The short of it is that we as humans have a lot of psychological things that can screw up our decisions. And that's one thing when digging in to our previously made decision even when faced with conflicting facts or even that the whole thing was made up (no comment), but even worse when it comes to money and investing. Knowing about this at least lets us have a chance.
One problem was that while there was a lot of learning, to me at least there weren't a lot of solutions. Maybe they just slipped my mind, as I was thinking of other things. It happens. But to me it was only in the last chapter where it suggested reasoning to use value investing and momentum investing, including why they should continue working unlike other trends that get overused and lose their advantage.
Overall it was a good book if you have the time. But if selecting from a few different ones in the genre, I'd go with something else first.
I did get a kick out of many of the examples and quotes. This partial one, from Reminiscences of a Stock Operator, is a good one as far as paper trading vs going real, coming from around a century ago:
The short of it is that we as humans have a lot of psychological things that can screw up our decisions. And that's one thing when digging in to our previously made decision even when faced with conflicting facts or even that the whole thing was made up (no comment), but even worse when it comes to money and investing. Knowing about this at least lets us have a chance.
One problem was that while there was a lot of learning, to me at least there weren't a lot of solutions. Maybe they just slipped my mind, as I was thinking of other things. It happens. But to me it was only in the last chapter where it suggested reasoning to use value investing and momentum investing, including why they should continue working unlike other trends that get overused and lose their advantage.
Overall it was a good book if you have the time. But if selecting from a few different ones in the genre, I'd go with something else first.
I did get a kick out of many of the examples and quotes. This partial one, from Reminiscences of a Stock Operator, is a good one as far as paper trading vs going real, coming from around a century ago:
I have heard of people who amuse themselves conducting imaginary operations in the stock market to prove with imaginary dollars how right they are. Sometimes these ghost gamblers make millions. It is very easy to be a plunger that way.