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

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Drawing on the latest scientific research, Jason Zweig shows what happens in your brain when you think about money and tells investors how to take practical, simple steps to avoid common mistakes and become more successful.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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You see this book referenced in a lot of other finance self-help/investing books as the be-all, end-all guide on behavioral psychology associated with investing and money matters. Maybe it's a victim of its own success, and it's certainly a perfectly fine read for those who are just getting into investing as a baseline foundation of what to do and not do, but you'll find if you've read a fair amount on investing or behavioral psychology that many of these concepts (loss aversion, etc.) have been covered elsewhere in other books you've read. If you're starting out after getting a Bogleheads guide it's a nice complementary pickup, but not a must add to your library.
This is a great book to raise your self awareness on the weaknesses we all harbor and it's impact on decision making when it comes to investing. These irrational behaviors will continue to trip you up going forward so triggers need to be put in place to avoid repeating the same mistakes. What amazes me is how people will keep making these mistakes even after they are aware at a conscious level. Investing is like a drug and if you are addicted to gambling, this is one game you should step away from and look for other areas to invest like real estate or owning a small business.

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