I’d like to introduce you to a brand new book about the psychology of investing and trading: The Emotionally Intelligent Investor by Ravee Mehta. I’ll admit up-front to an interest in this book; not an ongoing financial interest, but I did help out with the editing and preparation for publishing. It means I know the content inside out, and also I know the author’s credentials, and on both counts I’ve been impressed.
While the book title contains the word “investor”, I can tell you that it will be just as interesting and insightful for spread bettors and other “traders”. Anyway, I’ll let the book speak for itself…
About the Author
From a humble beginning as the eldest son of immigrants, Ravee Mehta is now in the fortunate position of being a self-employed investor. Prior to managing his own money, Ravee was a managing director for 8 years at Karsch Capital Management – a multibillion dollar hedge fund. He previously held positions at Soros Fund Management and Donaldson, Lufkin & Jenrette. Ravee graduated summa cum laude from the University of Pennsylvania with degrees from both the Wharton School of Business and the School of Engineering and Applied Science.
|The Emotionally Intelligent Investor challenges several long-held assumptions and beliefs, by asserting that a good investment approach starts with introspection. Too many investment gurus tell you to emulate their techniques despite the fact that you may have very different personality traits, motivations and biases. This book provides a unique template for self-reflection and a framework for developing an investment approach that works best with who you are.|
Whereas the consensus opinion is that investing success comes from blocking out emotions and making purely rational decisions, the best money managers actually use their feelings. They actively sense what others in the market are thinking, and they employ gut instincts when making decisions. Nevertheless, virtually all investing text books neglect to mention how to best cultivate and utilize empathetic and intuitive realizations.
In this book you will learn a process for developing an investing advantage by putting yourself in someone else’s shoes. You will also discover how a stock chart is a great tool for understanding what the current holders of a security may be feeling, and you will appreciate why technical analysis works.
This book demystifies intuition with respect to investing and provides a method for building and safely harnessing helpful gut instincts. Traditional security analysis is vital, but in this book you will learn why superior returns primarily depend on self-awareness, empathy and intuition. The book is complete with examples and recommendations that illuminate a path towards reaching full investing potential.
Subscribe to Better Spread Betting by Email (I won’t tell anyone else, and you can cancel anytime)
Disclaimer: this posting is for general education only; it is not trading advice.