Title: "Investing and the Irrational Mind: Rethink Risk, Outwit Optimism, and Seize Opportunities Others Miss"
Author: Robert Koppel
Publisher: McGraw-Hill, 2011; 304 pages; $17.72 on amazon.com
A good number of books lately have explored the various takeaways investors can learn from the field of behavioral finance, which studies how our thought processes (and often, flawed thinking patterns) interact with our investment and personal financial decisions.
Most, though, over-index on the exploring and underdo the upshot: What, precisely, are we investors supposed to be doing with this information?
We know we can be a little bit crazy. Market drops freak us out, and the tips we get from our hairdresser’s roommate can get us excited, despite the — ahem! — questionable nature of the source. But what are we supposed to do to prevent our crazy thoughts from creating actual losses?