The Laws of Wealth: Psychology and the Secret to Investing Success

GOLD MEDALIST IN THE AXIOM BUSINESS BOOK AWARDS 2017. From the New York Times and USA Today bestselling author Dr. Daniel Crosby comes a behavioral finance book all investors have been waiting for. In The Laws of Wealth, psychologist and behavioral finance expert Daniel Crosby offers an accessible and applied take on a discipline that has long tended toward theory at the expense of practicality. Readers are treated to real, actionable guidance as the promise of behavioral finance is realized and practical applications for everyday investors are delivered. Crosby presents a framework of timeless principles for managing your behavior and your investing process. He begins by outlining ten rules that are the hallmarks of good investor behavior, including "Forecasting Is for Weathermen" and "If You're Excited, It's Probably a Bad Idea." He then introduces a unique new taxonomy of behavioral investment risk that will enable investors and academics alike to understand behavioral risk in a newly coherent and complete way. From there, attention turns to the four ways in which behavioral risk can be combatted and the five equity selection methods investors should harness to take advantage of behaviorally induced opportunities in the stock market. Throughout, readers are treated to anecdotes, research, and graphics that illustrate the lessons in memorable ways. And in highly valuable "What Now?" summaries at the end of each chapter, Crosby provides clear, concise direction on what investors should think, ask, and do to benefit from the behavioral research. Dr. Crosby's training as a clinical psychologist and his work as an asset manager provide a unique vantage and result in a book that breaks new ground in behavioral finance. You need to follow the laws of wealth to manage your behavior and improve your investing process.