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AlphaBrain: How a Group of Iconoclasts Are Using Cognitive Science to Advance the Business of Alpha Generation

AlphaBrain: How a Group of Iconoclasts Are Using Cognitive Science to Advance the Business of Alpha Generation

Authors
Publisher Wiley & Sons
Year
Pages 304
Version hardback
Language English
ISBN 9781119335566
Categories Business & management
Delivery to United States

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Book description

Smarter decision-making based on cognitive science AlphaBrain is the investor's guide to achieving more, doing better, and reaching higher. At its core, the magnitude of your success is based on the quality of your decisions. The problem is that human beings are poor decision-makers; we tend to approach problems after they arise instead of planning for them in advance. We put too much weight on instinct, belief, and "gut feeling." We make the same mistakes over and over again--so reliably, in fact, that cognitive science can accurately predict exactly which mistakes we'll make and when. This book offers a way to understand and plan for the human mind's usual tendencies to help you make smarter investment decisions. Using a framework based on cognitive research, you'll learn how to approach decisions objectively, systematically, and constantly review your process; you'll take action based on evidence instead of intuition, and get ahead of potential problems before they get the best of you. With so much riding on the correctness of your choices, natural tendency can be a dangerous thing. This book shows you how to remove the bias and emotion to start making choices backed by hard evidence and objective data and lower your stress. * Shift your processes from reactive to proactive * Base decisions on reality over belief * Eliminate cognitive bias and reduce common mistakes * Make better decisions with a systematic, objective approach Why do we begin managing risk only once it becomes apparent? Why do we react to the market instead of making the big decisions before emotion takes over? Investing has always been a largely reactive field, but those who dominate it approach decision-making less like a human and more like a machine. AlphaBrain shows you how to get real about investing, with cognitive techniques that lead to smarter, evidence-based decisions.

AlphaBrain: How a Group of Iconoclasts Are Using Cognitive Science to Advance the Business of Alpha Generation

Table of contents

Preface ix

Acknowledgments xv

About the Author xvii

Part I Decision Analysis 1

Chapter 1:Marginal Improvement, Significant Impact 3

Chapter 2:Blinded by Bias 21

Chapter 3:Rational Decisions 33

Chapter 4:Decision Analysis 49

Chapter 5:How to Solve Any Problem 63

Chapter 6:Cerebral Junk Food 85

Chapter 7:The Input Paradox 101

Chapter 8:Auditing Mental Accounting 111

Part II Decisions In The Financial Context 123

Chapter 9:Mistakes at the Heart of Investment Management 125

Chapter 10:Manager Selection 135

Chapter 11:Prophecy of Value 149

Chapter 12:Mind over Matter 161

Chapter 13:Coaching 181

Chapter 14:Trading Decisions 191

Chapter 15:How to Stop Losing Money 221

Chapter 16:The Danger of Shortcuts 241

Chapter 17:The Power of the Unexpected 255

Index 275

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