Books describing market crowd/psychology

Anyone has any to recommend?

There’s one by Gary belsky. One by Jason zweig. Can’t remember the names right now.

Of course, there’s “extraordinary popular delusions” and “manias panics and crashes”.

And “demon of our own design”.

http://www.amazon.com/Reminiscences-Stock-Operator-Wiley-Trading/dp/1592801943

You should listen to Charlie Munger’s speech on Human Misjudgement: It’s not just about markets but about human behavior in general.

https://www.youtube.com/watch?v=pqzcCfUglws

He mentioned “Influence” by Cialdini in that speech, a book i’m going to read after March (CAIA Level 1).

In addition to the above…

The Crowd by Gustave Le Bon

Psychology and the Stock Market by David Dreman

In terms of ‘pure’ psychology, Thinking, Fast and Slow by Kahneman is really really good (in my opinion).

Influence by Cialdini is awesome - not directly related to markets though.

Beyond Greed and Fear is very good, but if you took CFA L3 it will feel redundant for the most part.

Kirkzpatrick’s Technical Analysis has a couple interesting bits on crowd behavior if I recall correctly.

I’ve actually read “Extraordinary Popular Delusions…” It basically says bubbles can happen with a couple well known very old examples. And then it says that crowds can get mad with a bunch of stuff such as witches and what not. It seems interesting, but the old references and the language make it boring, in my opinion.

I’m not that fond of “Reminiscences” either, but I don’t like to admit that in public.

Dan Ariely has a bunch of books. They’re good, but the ones I’ve seen feel a little bit like rehashes of Kahneman or Cialdini stuff.

Here is a pretty comprehensive list of books that include several on Behavioral Finance (which is what I assume you mean by “market crowd”): http://www.corporatefinanceinstitute.com/finance-investing-books

“Animal Spirits” ---------->Shiller

Watch the nature channel, read papers on primate group behavior, go to the zoo. :wink:

Anyone familiar with Soros’ market reflexivity?

https://smile.amazon.com/Behavioral-Portfolio-Management-Thomas-Howard/dp/0857193570

Thinking Fast and Slow is phenomenal and is the book you should be reading.

I’ve read Animal Spirits and remember liking it but I can’t really remember any specifics from it.

Ive heard good things about Thinking Fast and Slow and know the basic premise (our emotional decisions are made far faster than our reasoned ones, and are very hard to undo).

i really liked Michael Mauboussin’s books, especially More Than You Know. It’s not directly addressing behavioral finance but it does discuss how complex interactive systems work and how mass psychology both drives and reacts to it.

Also, Market Wizards has a fair amount of trader/investor psychology in it. If you haven’t read it or the New Market Wizards, it’s a good thing.

Thinking fast and slow premise isn’t really what you described. It’s also built very heavily on interesting research throughout. Definitely the work of a master in the field and impressive.

More Than You Know was very good.

OK, I mistakenly assumed that the title was drawn from the main premise of the book. I’ll have to read it; it’s on my list… :slight_smile: