Nudge Psychology Using Mental Models for Profitable Investing

“I think time and time again, in reality, psychological notions and economic notions interplay and the man who doesn't understand both is a damn fool.”
Charlie Munger

My book embraces the viewpoint of Charlie Munger regarding investing psychology. Nudge Psychology is a powerful psychological approach that allows investors to simplify investment information and bring order and clarity to the investment process. When utilized, the principles of Nudge Psychology remove both emotions and intuitive guesses from the decision-making process.

This book reveals how investment decisions involving risk and uncertainty are seldom rational and nonemotional. I will show that when overtaxed by complex investment problems we turn to flawed thinking shortcuts to make decisions. Investment decisions based on flawed thinking can be ruinous.

Nudge Psychology offers a practical and effective behavioral approach to investing. The central idea underlying this approach is to build structures into the investing process that suppress our Cognitive Biases while nudging effective decision-making.