Achieve a new level of investing and trading success by defeating your worst enemy--yourself Successful trading relies on three vital skills: market analysis, money management, and decision-making. The first two are straightforward skills anyone can learn, but the third is much more difficult. Your ability to make the right decisions isn't based on hard facts, but psychological realities like your own temperament, your own biases, and the biases of other traders. In essence, you can only master the stock market when you master yourself first, and that starts with making the right decisions habitually. Think Like the Great Investors is organised into four distinct parts that show you how to understand your own temperament, the psychology of the market as a whole, your own biases and decision-making errors, and how to practically apply your understanding of these factors into your decision-making system.
Written by highly respected investment teacher, speaker, and writer Colin Nicholson Ideal for both inexperienced traders who want to lower their risk as well as experienced traders who lack that one final piece in the trader's skillset For anyone looking for that final piece of the investing puzzle, the answer is right here. With Think Like the Great Investors , you'll leap beyond the final hurdle to super-successful investing ...yourself.
COLIN NICHOLSON BEc, SF Fin has been investing his own money in Australian shares for over 45 years and publishes his returns on his website www.bwts.com.au. He has taught both technical analysis and fundamental analysis at a postgraduate level. Students at the Securities Institute of Australia rated him an 'Outstanding Presenter'. Colin has been a highly ranked speaker at Australian Investors Association and Australian Technical Analysts Association conferences as well as being a sought-after speaker to investing associations and at expos nationally. He has written five books on investing, including Building Wealth in the Stock Market, The Psychology of Investing, The Aggressive Investor, Hot Stocks 2007 , and Hot Stocks 2008 .
About the author Important note PART I: STRETCHING OUR MIND 1 Shaping our destiny 2 Men and women (overconfidence) 3 I am absolutely certain (overconfidence, confirmation and availability) 4 Mine, all mine (mental accounting) 5 Why we never learn (reinforcement and punishment) 6 Love is blind (cognitive dissonance) 7 A little knowledge is dangerous (representativeness) 8 It must be tails next (the gambler's fallacy) 9 Dangerous rewards (random reinforcement) 10 How much is it? (anchoring) 11 Reconstruction (hindsight) 12 Why we get it wrong (disposition effect and prospect theory) 13 We cannot change the past (the sunk cost fallacy) 14 I remember it all too well (availability revisited) 15 What goes up ... (small numbers, reversion to the mean) 16 What is it worth? (overreaction) 17 He who hesitates is last (inertia) 18 What do you want to do? (regret) 19 Ask why not? (confirmation revisited) 20 I want it now (impulsiveness, immediate gratification) 21 Tell me why (randomness) 22 It can't happen (normalcy) PART II: IN THE AVALANCHE 23 Mob rule (crowds) 24 Notes and commentary on Gustave Le Bon's The Crowd 25 Contrary to popular belief ... PART III: CATCHING THE TIDE 26 Nine keys 27 Failure traits 28 Dealing with loss 29 Plan to succeed 30 Seven investing sins 31 The wall 32 Capitulation 33 Tough going 34 Be early 35 Blinded by fear 36 Conquer fear Further reading Index