Investment Psychology Explained (Martin J. Pring)

Trader's Library #28 · Trading psychology. A technical analyst on psychology: discipline, a plan and independence from the crowd.

Author: Martin J. Pring · Original: Investment Psychology Explained · Year: 1993 · Usefulness for traders: ★★★☆☆

What it's about

The author of classic technical analysis textbooks writes about the psychological side of investing: discipline, patience, independent thinking, being swayed by the media and the crowd, and the investment plan.

What it gives a trader

Pring combines classic principles (from Livermore and Baruch) with an analyst's practice. Useful chapters on how the media and opinions affect decisions, and on the difference between conviction and stubbornness.

Lessons for traders

• the media amplify the market's current mood (the availability heuristic, Atlas of biases #7)
• independent thinking requires a plan written in advance
• stubbornly clinging to an opinion isn't consistency (belief perseverance, Atlas of biases #22)

What to watch out for

Less modern than Douglas or Tendler. Many examples from the 1980s.

Discussion

The discussion takes place in Hetman Capital Club (in Polish). Join the discussion in the Club →

Navigation

← #027 The Inner Game of Trading and Investing and the Irrational Mind (Howard Abell, Robert Koppel) · Library index · #029 The Psychology of Risk (Ari Kiev) →

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.