Your Money and Your Brain: How the New Science of Neuroeconomics Can Help Make You Rich

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Simon and Schuster, 2007 - Business & Economics - 340 pages
What happens inside our brains when we think about money? Quite a lot, actually, and some of it isn't good for our financial health. In Your Money and Your Brain, Jason Zweig explains why smart people make stupid financial decisions -- and what they can do to avoid these mistakes. Zweig, a veteran financial journalist, draws on the latest research in neuroeconomics, a fascinating new discipline that combines psychology, neuroscience, and economics to better understand financial decision making. He shows why we often misunderstand risk and why we tend to be overconfident about our investment decisions. Your Money and Your Brain offers some radical new insights into investing and shows investors how to take control of the battlefield between reason and emotion.

Your Money and Your Brain is as entertaining as it is enlightening. In the course of his research, Zweig visited leading neuroscience laboratories and subjected himself to numerous experiments. He blends anecdotes from these experiences with stories about investing mistakes, including confessions of stupidity from some highly successful people. Then he draws lessons and offers original practical steps that investors can take to make wiser decisions.

Anyone who has ever looked back on a financial decision and said, "How could I have been so stupid?" will benefit from reading this book.

 

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User Review  - PointedPundit - LibraryThing

Controlling one’s emotions is a major key to successful money management. No one who has withered under the emotional pressure of making split second investment decision will argue that it is not ... Read full review

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Book is ok, lets you understand how your brain reacts when doing trades. The cognitive processes of the brain when one enters into an investment or a trade.

Contents

Chapter One Neuroeconomics
1
Chapter Three Greed
34
Chapter Four Prediction
53
Chapter Five Confidence
85
Chapter Six Risk
127
Chapter Seven Fear
154
Chapter Eight Surprise
176
Chapter Nine Regret
190
Chapter Ten Happiness
228
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