This book is the first to demonstrate the practical implications of an important, yet under-considered area of psychology in helping traders and investors understand the biases and attribution errors that drive unpredictable behaviour on the trading floor. Readers will improve their chances of trading successfully by learning where cognitive biases lead to errors in stock analysis and how these biases can be used to predict behavior in market participants. Focusing on the three major types of bias—Belief-Formation, Quasi-Economic, and Social—the book provides a rigorous discussion of the...

This book is the first to demonstrate the practical implications of an important, yet under-considered area of psychology in helping traders and investors understand the biases and attribution errors that drive unpredictable behaviour on the trading floor. Readers will improve their chances of trading successfully by learning where cognitive biases lead to errors in stock analysis and how these biases can be used to predict behavior in market participants. Focusing on the three major types of bias—Belief-Formation, Quasi-Economic, and Social—the book provides a rigorous discussion of the...