Psychology and the secret to investing success

By Daniel Crosby

From New York Times and USA Today bestselling author, Dr. Daniel Crosby—the behavioral finance book all investors have been waiting for.

In The Laws of Wealth, psychologist and behavioral finance expert Daniel Crosby presents three sets of real, actionable rules that investors can use to apply the lessons of behavioral finance.

He begins with ten rules that are the hallmarks of good investor behavior, including ‘Forecasting is for Weathermen’, ‘If You’re Excited, It’s Probably a Bad Idea’, and ‘Trouble is Opportunity’.

From here, attention turns to the Four Cs of Rule-Based Investing: Consistency, Clarity, Courageousness, Conviction. The Four Cs provide practical methods to combat behavioral risk in investing.

And finally, he introduces the Five Ps of successful equity investing: Price, Properties, Pitfalls, People, Push. Investors can draw on these five methods to select stocks and take advantage of behavioral opportunities in the stock market.

Throughout, anecdotes, research, and graphics 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 to think, ask, and do next to become a better investor.

If you are wondering what years of behavioral finance has delivered for real investors, you should follow the laws of wealth to manage your behavior and improve your investing!

Educated at Brigham Young and Emory Universities, Dr. Daniel Crosby is a psychologist, behavioral finance expert and asset manager who applies his study of market psychology to everything from financial product design to security selection. He is co-author of the New York Times bestseller Personal Benchmark: Integrating Behavioral Finance and Investment Management and founder of Nocturne Capital. He is at the forefront of behavioralising finance. His ideas have appeared in the Huffington Post and Risk Management Magazine, as well as his monthly columns for WealthManagement.com and Investment News.

Daniel was named one of the "12 Thinkers to Watch" by Monster.com, a "Financial Blogger You Should Be Reading" by AARP and in the "Top 40 Under 40" by Investment News.
When he is not consulting around market psychology, Daniel enjoys independent films, fanatically following St. Louis Cardinals baseball, and spending time with his wife and three children.