MarketPsych: How to Manage Fear and Build Your Investor Identity


Praise for Market Psych

"MarketPysch is an important step in taking the field of behavioral finance from the quaint and theoretical to the powerful and practical. Backed by the new research in neuroscience and loaded with techniques tailored to your individual investor personality type, this book is a must-read for the active investor."
—Stephen M. Horan , PhD, CFA, Head, Professional Education Content and Private Wealth, CFA Institute

"As someone whose work in the 1970s and 1980s first highlighted the importance of the prefrontal cortex and limbic system to financial decision making, I can say that this book not only takes that idea and runs with it, but does so in an insightful, practical, and entertaining way."
—Hersh Shefrin , author of Beyond Greed and Fear: Understanding Behavioral Finance and the Psychology of Investing

"Peterson and Murtha have channeled the science of behavioral finance to help average investors master their emotions and, in doing so, grant them control over their financial futures. This is a holistic, powerful, and extremely practical book—it’s head and shoulders above the pack."
—Robert Frick , Senior Editor, Kiplinger’s Personal Finance

"Cartoonist and animator Walt Kelly's comic strip character Pogo’s now-famous quote, 'We have met the enemy and he is us,' is a befitting rendition of what most investors realize but have difficulty controlling—themselves. MarketPsych provides well-researched solutions for investors to heed. Knowing your own propensity to the temptations and emotional foibles of the financial markets is the critical step to making sound choices."
—Arnold Wood , President and Chief Executive Officer, Martingale Asset Management

"The average investor is bombarded with over the top media reports and struggling with their own basic human behaviors. The odds are stacked against the average investor. Richard and Frank's book on dealing with fear and building your investor identity is designed to tilt the odds and is a must-read for all investors."
—Oliver Murray, President and Chief Executive Officer, Brandes Investment Partners & Co.

RICHARD L. PETERSON works at the intersection of the mind and markets. He is co-founder of MarketPsych LLC, where he trains financial advisers, portfolio managers, traders, and executives in emotion management and intuitive decision skills. Peterson is also Managing Director at MarketPsy Capital LLC, a psychology-based asset-management firm. Additionally, he operates which offers investors real-time market psychological intelligence on individual stocks, ETFs, and markets. Peterson is the author of the Wiley title Inside the Investor's Brain, which was praised as "exceptionally well-written" and "outstanding" by Barron's. His financial psychology research has been published in leading academic journals and textbooks, and he is an Associate Editor of the Journal of Behavioral Finance. Peterson has degrees in electrical engineering, arts, and medicine from the University of Texas. He is a Board-certified psychiatrist and performed post-doctoral studies in neuroeconomics at Stanford University. Peterson lives in Los Angeles with his wife and two daughters.

FRANK F. MURTHA received his PhD in counseling psychology from the University at Buffalo in 2001. He went on to join the consulting firm, RHR International LLP where he developed senior executives in leadership and pioneered a specialty in the new field of behavioral finance. In 2003 Murtha cofounded MarketPsych LLC, where he has led hundreds of workshops and trainings on applied investing psychology. Murtha's clients have included investment banks, financial services companies, and day trading firms, where he has coached financial advisors, analysts, and portfolio managers in reaching peak performance. Murtha has taught at numerous universities and is adjunct faculty at New York University. He is a recognized gambling and behavioral finance content expert and frequent contributor on the subject of investing psychology for print and electronic news media. Murtha lives in New York City with his wife and son.



Chapter 1: What Is Your Investor Identity?

Chapter 2: Investor Identity Fundamentals.

Chapter 3: Is Character Destiny?

Chapter 4: Managing Investing Emotions.

Chapter 5: What Do You Really Value?

Chapter 6: Identifying (and Avoiding) Investor Traps.

Chapter 7: Managing Investment Stress.

Chapter 8: Being Your Best.

Appendix A: Summary of Meditation Techniques.

Appendix B: Gratitude List.

About the Authors.