Description
Book SynopsisSmarter decision-making based on cognitive science AlphaBrain is the investor's guide to achieving more, doing better, and reaching higher. At its core, the magnitude of your success is based on the quality of your decisions. The problem is that human beings are poor decision-makers; we tend to approach problems after they arise instead of planning for them in advance. We put too much weight on instinct, belief, and gut feeling. We make the same mistakes over and over againso reliably, in fact, that cognitive science can accurately predict exactly which mistakes we'll make and when. This book offers a way to understand and plan for the human mind's usual tendencies to help you make smarter investment decisions. Using a framework based on cognitive research, you'll learn how to approach decisions objectively, systematically, and constantly review your process; you'll take action based on evidence instead of intuition, and get ahead of potential problems before they get the best of you.
Table of ContentsPreface ix
Acknowledgments xv
About the Author xvii
Part I Decision Analysis 1
Chapter 1:Marginal Improvement, Significant Impact 3
Chapter 2:Blinded by Bias 21
Chapter 3:Rational Decisions 33
Chapter 4:Decision Analysis 49
Chapter 5:How to Solve Any Problem 63
Chapter 6:Cerebral Junk Food 85
Chapter 7:The Input Paradox 101
Chapter 8:Auditing Mental Accounting 111
Part II Decisions In The Financial Context 123
Chapter 9:Mistakes at the Heart of Investment Management 125
Chapter 10:Manager Selection 135
Chapter 11:Prophecy of Value 149
Chapter 12:Mind over Matter 161
Chapter 13:Coaching 181
Chapter 14:Trading Decisions 191
Chapter 15:How to Stop Losing Money 221
Chapter 16:The Danger of Shortcuts 241
Chapter 17:The Power of the Unexpected 255
Index 275
