The Psychology of Investing

The Psychology of Investing, 7th Edition, is a textbook that examines how psychological factors explain real-world investor behavior beyond traditional finance models of optimizing return and minimizing risk. Written by John R. Nofsinger and published by Routledge, the work analyzes how human behavioral patterns shape financial markets.

The volume illustrates psychological biases in everyday behavior, assesses their impact on investment choices, and reviews academic studies documenting wealth-reducing decisions. For the 2022 edition, coverage incorporates topics including financial technology and cryptocurrencies.

Intended for advanced courses in behavioral finance, investment, and portfolio management, the textbook also serves financial planners and individual investors. End-of-chapter discussion questions provide practice to help readers evaluate their practical understanding.