Talk:Behavioral pitfalls

Articles

 * What Risk Matters, Robert Arnott, Financial Analysts Journal, (2003)
 * Bubble Logic: Or, How to Learn to Stop Worrying and Love the Bull by Clifford S. Asness, 08/2000
 * Rubble Logic: What Did We Learn from the Great Stock Market Bubble? by Clifford S. Asness, 2005
 * For Long-Term Investors, the Focus Should Be on Risk by Zvi Bodie and Paula H. Hogan, 06/2005
 * Risk and Risk Control in an Era of Confidence (or is it Greed?) by John Bogle, 04/06/2000
 * How Unusual Was the Stock Market of 2008? by Eugene F. Fama and Kenneth R. French, 05/04/2009
 * The Stockholm Syndrome and the Market by Todd Hickman, 07/22/2003
 * The Psychology of Successful Investing by Paul Merriman, 02/10/2005
 * Risk: What Exactly Is It? by Larry Swedroe, 08/08/2003

Institutional Research

 * Full Report: The Enviable Dilemma: Hold, Sell, or Hedge Highly Concentrated Stock? by Alliance Bernstein
 * Investment Solutions and Alternatives for Addressing Concentrated Equity by Vanguard Investment Counseling & Research, Donald G. Bennyhoff, CFA

Broadening the Discussion
Behavioral finance as an academic topic typically focuses on irrational investing behaviors that are common to everyone (to a greater or lessor extent). Think of them as genetic-based, or "Nature" characteristics of people in general.

By accident last year I ran into a "sibling" academic field to Behavioral Finance that is termed Financial Psychology. This area of research looks into irrational financial behaviors that appear to be derived from unusual aspects of personal history, especially experiences while a child. Think of them as "Nuture" characteristics of specific individuals. [Nature versus Nuture, the classic explanation dichotomy.]

Much research in this area is being published by Prof. Brad Klontz. He has written one general audience book on this topic, Mind Over Money - Overcoming the Money Disorders that Threaten Our Financial Health (Broadway Books, 2009), as well as others that are more focused on professionals practicing in this field. I found the book Mind Over Money to be well written and full of insights into helping people recognize and overcome nuture-based financial problems. Prof. Klontz also maintains a website: Your Mental Wealth.

Academic work is being published in the Journal of Financial Therapy.

As this Wiki effort in the behavioral area expands, it would be good to include some of the Financial Psychology research information as well. --ThePrune 18:58, 20 July 2013 (CDT)