Summary of Behavioral Trading

Looking for the book?
We have the summary! Get the key insights in just 10 minutes.

Behavioral Trading book summary
Start getting smarter:
or see our plans

Rating

9 Overall

9 Applicability

10 Innovation

8 Style


Recommendation

Long time market commentator Woody Dorsey, the theorist behind market semiotics, sees Wall Street as a continuum of the agora or the medieval street fair: a place where people congregate and trade, motivated by their own psychological drives. But if investors are still behaving based on the same visceral emotions that drove exchanges of goats in ancient bazaars, what does that forecast about how the market will act today? According to Dorsey, quite a lot. Interspersed with anecdotes that range from biography to paleontology to horse training, he offers principles and techniques that explain marketplace behavior in a way investors can understand and utilize. Begin with how he scans newspapers, a methodology worth remembering, and continue through his explanation of the Triunity Theory, a new system for understanding behavioral finance. Agree or disagree with his contrarian thinking, getAbstract.com believes his interesting diversions and innovative economic thinking will sweep you along. Dorsey brings many subjects together, but the two most interesting are, of course, why people behave as they do and how it affects the market and your money.

In this summary, you will learn

  • Why investing is not rational;
  • The mind, mood and body theory of behavioral trading; and
  • The investing methodology it suggests.
 

About the Author

Woody Dorsey began publishing his market commentary in 1985. He lives in Vermont.

 

Summary

Triunity Theory
Behavioral economics has been around almost as long as human behavior. Successful traders and investors have always known that there is more to trading and investing than the numbers indicate. However, a strain of rationalism hit the world in the eighteenth century and ...

More on this topic

Customers who read this summary also read

The Social Organism
The Social Organism
7
This Is Why We Can’t Have Nice Things
This Is Why We Can’t Have Nice Things
9
Hit Makers
Hit Makers
10
Kill All Normies
Kill All Normies
8
What Makes Something Go Viral?
What Makes Something Go Viral?
8
Creative Genius
Creative Genius
7

Related Channels

Comment on this summary