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Investment Psychology Explained: Classic Strategies to Beat the Markets
Expert advice in a back-to-basics handbook on how to beat the market-the classic way
In Investment Psychology Explained Martin J. Pring, one of the most respected independent investment advisors in the world, argues that in the revisionist '90s there are no quick, magical paths to market success. Rather, he emphasizes the timeless values of hard work, patience, and self-discipline-and much more. Drawing on the wisdom of creative investors such as Jesse Livermore, Humphrey Neill, and Barnard Baruch, as well as his own experience, Pring shows how to:
* Overcome emotional and psychological impediments that distort decision making
* Map out an independent investment plan-and stick to it
* Know when to buck herd opinion-and "go contrarian"
* Dispense with the myths and delusions that drag down other investors
* Resist the fads and so-called experts whose siren call to success can lead to disaster
* Exploit fast-breaking news events that rock the market
* Deal skillfully with brokers and money managers
* Learn and understand the rules that separate the truly great investors and traders from the rest
Reading Investment Psychology Explained will give you a renewed appreciation of the classic trading principles that, through bull and bear markets, have worked time and again. You'll see, with the help of numerous illustrative examples, what goes into making an effective investor-and how you can work toward achieving that successful profile.
In Investment Psychology Explained Martin J. Pring, one of the most respected independent investment advisors in the world, argues that in the revisionist '90s there are no quick, magical paths to market success. Rather, he emphasizes the timeless values of hard work, patience, and self-discipline-and much more. Drawing on the wisdom of creative investors such as Jesse Livermore, Humphrey Neill, and Barnard Baruch, as well as his own experience, Pring shows how to:
* Overcome emotional and psychological impediments that distort decision making
* Map out an independent investment plan-and stick to it
* Know when to buck herd opinion-and "go contrarian"
* Dispense with the myths and delusions that drag down other investors
* Resist the fads and so-called experts whose siren call to success can lead to disaster
* Exploit fast-breaking news events that rock the market
* Deal skillfully with brokers and money managers
* Learn and understand the rules that separate the truly great investors and traders from the rest
Reading Investment Psychology Explained will give you a renewed appreciation of the classic trading principles that, through bull and bear markets, have worked time and again. You'll see, with the help of numerous illustrative examples, what goes into making an effective investor-and how you can work toward achieving that successful profile.
288 pages, Paperback
First published October 1, 1992
41 people are currently reading
529 people want to read
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Displaying 1 - 9 of 9 reviews
December 18, 2017
THE LIQUIDITY AND PRICING MECHANISM THAT MAKES IT SO EASY TO ENTER THE FINANCIAL MARKETS HAVE THEIR DOWNSIDE: THEY LITERALLY TRY OUR PATIENCE.
The redeeming concept of hope is one of the greatest obstacles to clear thinking and maintenance of objectivity.
Beating ourselves means mastering our emotions and attempting to think independently.
Decisions based on our natural instincts invariably turn out to be the wrong course of action.
Hard work, common sense, patience and discipline are valuable attributes to smart investing.
People, it seems, tend to repeat past mistakes but those of the most recent past.
Overcome the fear of missing out and look for the next train, as there will always be another one.
Investors who have had a run of success have a tendency to relax and lower their guard because they havent recently been tested by the market.
Watching price quotations constantly is a sure way of losing LT perspective.
One mistake is to deviated from an investment plan temporarily.
With a mania/bubble a surplus of funds exists alongside a shortage of opportunities.
The broker sits in the crowd.
Successful investors know that if they carry psychological baggage their goals will be unattainable, so they make continuous effort to improve themselves by observing themselves.
The redeeming concept of hope is one of the greatest obstacles to clear thinking and maintenance of objectivity.
Beating ourselves means mastering our emotions and attempting to think independently.
Decisions based on our natural instincts invariably turn out to be the wrong course of action.
Hard work, common sense, patience and discipline are valuable attributes to smart investing.
People, it seems, tend to repeat past mistakes but those of the most recent past.
Overcome the fear of missing out and look for the next train, as there will always be another one.
Investors who have had a run of success have a tendency to relax and lower their guard because they havent recently been tested by the market.
Watching price quotations constantly is a sure way of losing LT perspective.
One mistake is to deviated from an investment plan temporarily.
With a mania/bubble a surplus of funds exists alongside a shortage of opportunities.
The broker sits in the crowd.
Successful investors know that if they carry psychological baggage their goals will be unattainable, so they make continuous effort to improve themselves by observing themselves.
February 8, 2021
A good read about how to manage and control yourself as an investor or trader. It has useful nuggets about knowing yourself, controlling your emotions, and not following the crowd. Useful tips also on how to be a contrarian. However I found the book lacking depth and independence of opinion. It gathered a lot of different insights and perspectives from other books and investors that I came across before. So it’s good for beginners or those that want to have an overview of the topic. Also it was not appropriate to bundle investors with traders. While we both invest in the same market we have completely different strategies. It’s like making a book on karate and Kung fu as they are both fighting skills. So this would be helpful if someone is trying to make up his or mind if they want to trade or invest. Thanks a ton to the author and for helping out.
October 28, 2025
This book was recommended to be by a trader I look up to named Mike Webster. It was an okay book. This book explains the mindset you should have as an investor or trader. This book has a lot of repetition, but that could be good, because it does cover some fundamentals that are important for an investor to hone.
December 21, 2021
Good book!
The main lesson is to set up a written strategy to handle future events and remove emotions from decision-making process.
The main lesson is to set up a written strategy to handle future events and remove emotions from decision-making process.
February 9, 2025
Worth a re-read. Simple book but great reminder.
November 7, 2015
Didn't get too much out of this book. I felt that large portion of this book was dated and wasn't relevant to me (lots of factual info regarding US historical market news... which I wasn't sure what the author was trying to convey).
However the last few chapters of the book contained great general tips and mindset as a successful investor/trader which I thought was great.
However the last few chapters of the book contained great general tips and mindset as a successful investor/trader which I thought was great.
July 29, 2013
Not the best book on investor psychology that I have ever read. If you read anything from the Austrian School that deals with Praxeology, or the discipline that deals with Human Action, then you would REALLY come to understand investor psychology.
March 29, 2018
Not a useful book for someone past 101. More "useless" list of others tip to do and not do....Too general to be of any useful use, a complete lack of specifics that are meaningful.....book gets donated to the used book library.
Displaying 1 - 9 of 9 reviews