INVESTOR THERAPY: A Psychologist and Investing Guru Tells You How to Out-Psych Wall Street

It's more important that investors understand their emotions than conduct research or have information about the market, argues Geist, a psychiatrist and president of the Institute of Psychology and Investing Inc.: "Emotions play a complex role in the investing process.... To do well in the market, you must learn to use your emotions, not be led by or eliminate them." Feelings allow people to make subjective decisions based on their experience. These emotions, he writes, let investors evaluate their choices, provide signals about certain decisions and help people ride out difficult times. Geist, also a professor at Harvard Medical School, bases his theories not just on personal experience as an avid stock market investor but also on his many clients who have sought counseling to improve their investing abilities. In a clear, appealing writing style, Geist intersperses advice on how the stock market works with psychological insights. Readers will identify with Geist's anecdotes about people unsure whether to sell a stock that has dramatically dropped in price or those who are uncertain how to evaluate news about a new company. Specific strategies and advice make this title practical, but overall the content is sophisticated and requires readers to digest some complex psychological theories. Those willing to consider a fresh approach to investing and disciplined enough to change their ways will find this book most useful. (Sept.)