Lots of research exists on human investment behavior. Personal psychology has much to do with the way securities markets operate.
I have mentioned in past comments, my studies and evaluations of over
1,600 investment strategies, and their pros and cons. In addition, I have
always said there is no one strategy I have found better than any other. What makes for investment success is strict discipline.
Furthermore, discipline can be mastered, with proper personalized control over the psychological hazards that beset investors.
Main Street and Wall Street investors should look at the
work done by Kahneman and Tversky on investing behavior. It will provide a glimpse of how investors think, often to their disadvantage.
Psychology does affect the way folks make securities market decisions, by affecting the discipline I suggest. (See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)
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