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. MARTIN J. PRING is publisher of the highly regarded newsletter The Pring Market Review. A frequent contributor to Barron's and other leading investment periodicals, he is the author of The All-Season Investor, the bestselling Technical Analysis Explained, and a number of other books on interest rates, international investing, and commodities and futures. "Fueled by euphoria, greed, and even fear, the giddy economic ride of the 1980s was ultimately, for many, an unfortunate one. The fundamentals of sound portfolio management got lost along the way, and as an inevitable consequence, many investors simply crashed and burned." "The revisionist '90s demand a no-nonsense approach that puts a premium on classic investment philosophy, psychology, and strategy. And nowhere will you find this bracing attitude more clearly and practically embodied than in Martin Pring's new clarion call for investors: Investment Psychology Explained." "Written by one of the most respected independent investment advisors in the world, whose bestselling books, videos, and newsletters have prudently guided thousands of investors through bullish and bearish times, Investment Psychology Explained emphasizes that investors have to be more analytical and less impulsive to flourish in today's market." "Arguing that there are no quick, magical paths to market success, Pring draws instead from the wisdom of many creative investors, including Jesse Livermore, Humphrey Neill, and Bernard Baruch, as well as from his own experience, and distills their thought into one convenient, back-to-basics handbook." "With Investment Psychology Explained at your side, you'll learn how to stay one step ahead through the application of the age-old verities - hard work, common sense, patience, and discipline. With the help of numerous examples, past and present, you'll discover how to create and stick to an independent investment plan - and avoid being carried away by fads or quick-fix "experts", buck the conventional wisdom at the right times - and know how and when to "go contrarian", shake off the delusions and myths that ensnare too many investors - and develop profitable habits and attitudes instead, allow objective analysis rather than emotions to guide your decision making, stay the course with investment strategies and not shed them prematurely if there is no short-term payoff, profit from the markets' unexpected reactions to fast-breaking economic and political news, deal more effectively with brokers and money managers, and understand and use the classic trading rules that have proven their mettle through the ages." "A book whose measured wisdom is a true tonic for the times, Investment Psychology Explained puts you on solid investment ground, demonstrating with each successive chapter how financial well-being is earned through incremental steps and based solidly on a firm psychological base. As such, Investment Psychology Explained is the one constant you'll want to rely on again and again."--BOOK JACKET This volume explains why independent thinking and flexibility are crucial to investment success. It describes how to develop small, sound investment plans and strategies, using many examples, case histories and the investment rules of successful Wall Street gurus. You probably bought this book hoping that it would provide some easy answer in your quest to get rich quickly in the financial markets.