Understand How Markets Really Work and Win the Wealth Game
In this book about the stock market and the forces which move prices, Lawrence A. Cunningham gives us an insider's view of the system and the flaws which can affect how well we do when investing.Written in 2002, the book details the ways in which investors can 'trick' themselves into making poor decisions, and is every bit as applicable in today's market. There are many human factors which go into how the markets react to news and changes, and these are explained with patience and intelligence. The market, ultimately, is made up of people making investment decisions, and understanding what moves people to act - or react - can help you make your own decisions with intelligence and knowledge rather than guesswork and emotion.
Cunningham helps us by laying out the ways in which institutions work, describing psychological factors such as inherent biases, fear and greed, and explaining market and reactionary influences such as news items, hot tips and analyst comments. His mission seems to be to help the individual investor act rationally and not be blinded by said tips, fancy marketing or fast-talking 'professionals'. A professional himself, Cunningham is a Professor of Law at Cardozo Law School, and is an expert and sought-after lecturer in corporate governance and securities law.
This is a smart read for anyone who feels they need a better handle on their investment decisions and wants to manage their own portfolio. Even for those dealing with professionals, there is valuable information here on how to be an intelligent, calm and informed client.
Cheers to your financial intelligence!
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