Influence and Persuasion: Cialdini and Bernays
Trader's Library #102 · Habits, learning and the mind. How persuasion works and why a trader should recognise it.
Author: Robert B. Cialdini, Edward L. Bernays · Original: Influence; Pre-Suasion; Propaganda; Crystallizing Public Opinion · Year: 1984 · Usefulness for traders: ★★★☆☆
What it's about
Cialdini's books on the principles of influence (reciprocity, commitment, social proof, liking, authority, scarcity) and “Pre-Suasion”. Plus “Propaganda” and “Crystallizing Public Opinion” by Bernays, the father of public relations.
What it gives a trader
The trading market is full of persuasion: courses with limited places, screenshots of profits, “everyone's already making money”. Knowing the principles of influence helps you recognise it. Bernays shows how public opinion is deliberately shaped, which applies to market narratives too.
Lessons for traders
- social proof affects market decisions (herding, Atlas of biases #31)
- authority and confidence sell, even without results (authority bias, Atlas of biases #30)
- scarcity (“today only”) switches off good sense
What to watch out for
Bernays writes from the perspective of a propagandist, which calls for critical reading.
Discussion
The discussion takes place in Hetman Capital Club (in Polish). Join the discussion in the Club →
Navigation
← #101 Stoicism: Marcus Aurelius and Ryan Holiday · Library index · #103 Mind and Emotions: Kross, Dweck, Seligman, Markman →
Educational content, not investment advice. The book description is my own summary and assessment, not quotations. Edition details were checked in catalogues and bookshops, and where there was doubt I said so plainly.