Chen NeuroInvesting

Build a New Investing Brain
1. Auflage 2013
ISBN: 978-1-118-33922-0
Verlag: John Wiley & Sons
Format: PDF
Kopierschutz: Adobe DRM (»Systemvoraussetzungen)

E-Book, Englisch, 240 Seiten, E-Book

Reihe: Wiley Trading Series

Rewire your brain for investing success
As an investment advisor to high net worth individuals, Wai-YeeChen has spent years watching her clients make investmentdecisions--some good decisions and some not-so-good decisions.Though confronted by the same market variables, those clients oftenmake very different choices with very different results. Here, Chenargues that it's usually not the data that affects investordecision-making as much as the way investors themselves think. InNeuroInvesting, Chen argues that investors can change theway they think in order to change the way they invest. She presentsfour elements that affect investor decision-making and reveals howinvestors can rewire their brains to make better investingdecisions for better returns.
* Uses neuroscience to explain how successful investors thinkdifferent
* Written by an experienced investment advisor who works at oneof Australia's premier retail brokers
* Explains investing using real-world stories about investorsfrom an advisor's perspective
When it comes to investing, how you think has a huge impact onhow you make investing decisions. Based on the real science of howpeople think, NeuroInvesting offers every investor a chanceto change the way they invest by changing the way they think.

Autoren/Hrsg.

Chen, Wai-Yee

Inhaltsverzeichnis

Foreword ix
Preface xi
Acknowledgments xv
About the Author xvii
Part I Being at Ease 1
Chapter 1 Money and Me 3
My Money Personality 4
The Big Five Personality Traits 13
Money and Me 16
Notes 17
Part II The Tension Caused by Impulsiveness 19
Chapter 2 Thrills, Ego, and Impulse: Is It Bad? Is It Me?21
What Is Impulsiveness? 21
What about Impulse? 26
Keeping Impulse and Impulsiveness at Tension 34
The Impulse Meter 36
Notes 37
Chapter 3 Impulsiveness and Our Brain: Dopamine and theReward Network 39
Impulsiveness and Dopamine 39
Dopamine Neurons 40
Dopamine and the Trader 41
Dopamine Withdrawal Symptoms 42
Novelty-Seeking Gene? 44
Dopamine's Engine Room and Neuronetwork 45
Notes 49
Chapter 4 Beating Impulsiveness 51
Taut and Alert 51
The Effect of Serotonin 52
The Right Brain Comes to the Rescue 55
Engaging the Rational Brain 57
Setting Rules and Sticking to Them 60
Emotional Pain and Fear 63
In Conflict 66
Brain Loop 67
Be Open 69
Play Your Own Game 71
Notes 71
Part III The Tension of Fear73
Chapter 5 How Did Fear Get Here? Expectations, Letdowns, andAnxiety 75
A Big Expectation 75
A Clean Slate? 77
Prevalent Fears 78
Personal Fears 88
Notes 99
Chapter 6 Are Fears Bad? Fear Takes the Role You Give It101
Passing Up Good, Profitable Opportunities 101
Buying at the Top 102
Buying Products with High Yields 103
Counterproductive Trading 105
Unnecessary Protections 106
Fear Incapacitates 107
Inability to Accept Losses 110
Fear Causes Brain Freeze 111
The Costs of Fear 112
Notes 113
Chapter 7 Reacquaint Yourself with Fear: Been Burnt, DoneThat 115
The Pandora's Box of Fear 115
The Engine Room of Fear 116
The Process of Fear 118
The Making of Fear Memories 118
How Real Are Memories? 119
Recreating Trading Memories 122
Other Fear Management Techniques 126
Notes 131
Part IV Instincts Held in Tension 133
Chapter 8 Emotions and Beliefs: Who Is in Control? What IsReal? 135
Emotions 135
What Are Emotions? 136
The Emotional Neuronetwork 137
Value of Emotions 138
Emotional Expression of Goals 141
Our Beliefs: The Unspoken Goal 144
Instinct Encapsulates All 148
Notes 149
Chapter 9 Expressions of Instincts: Are Your InstinctsUndervalued? 151
A Culture of Anti-Instinct 151
Your Instinct Awaits 153
Expressing Instincts 154
The Emotional Brain and Instincts 155
Instincts in Trading 156
From Instincts to Mimicry 158
Mirror Neurons in Trading 160
The Workings of Mirror Neurons 161
Practice Instincts 162
Avoid Instinct Killers 162
Avoiding Anti-Instincts 173
Notes 174
Chapter 10 Nurturing Your Skills in NeuroInvesting: What IsYour Mental Personality? 177
How to Be an Excellent Instinctual Investor 177
NeuroInvesting Is a Journey 186
Notes 187
Chapter 11 Summary of the 12 NeuroInvesting TradingStrategies 189
Appendix A Big Five Inventory Questionnaire (Adapted) 191
Appendix B Barratt Impulsiveness Scale (Revised) 197
Appendix C T he Maudsley Medical Questionnaire 201
Appendix D Word Connection List 203
Appendix E Body Perception Questionnaire 205
Index 213

Über Autor(innen)

Wai-Yee Chen, CPA, MAppFin, is an investment adviser andprofessional portfolio manager who specializes in the use ofoptions in growing, protecting, and income-enhancing investmentportfolios of her high-net-worth clients.
Wai-Yee's more than seventeen years' experience in trading andadvising clients in mostly equities and derivatives gives her aunique perspective into how investors' own personality, psychology,and behavioral traits affect their investing style and returns. Hermarket insights and investment ideas are regularly sought after byinvestment magazines, journals, and TV channels CNBC and SkyBusiness, and she is a coach to fellow advisers and investors.
Wai-Yee's skillfulness in drawing on the sensitivities ofneuroscience, psychology, and philosophy of investing, combinedwith her knowledge of the fast and dynamic worlds of derivativesand stocks, makes her both a swift and consideredinvestor/adviser.