Psychological Analysis: How to Make Money, Outsmart the Market, and Join the Smart Money Circle

Length: 272 pages
Edition: 1
Language: English
Publisher: Wiley
Publication Date: 2021-12-29
ISBN-10: 1119282047
ISBN-13: 9781119282044
Sales Rank: #15633 (See Top 100 Books)

Beat the market by using Psychological Analysis for investing and trading under any conditions

Conventional wisdom tells us that people are rational and make rational decisions with their money. But that’s simply not true considering most people fail to beat the market. Conventional wisdom also tells us that there are two primary ways to approach the market: technical and fundamental analysis. Again, that is not true because if it were—everyone would be rich. Think about it, how many times have you seen stocks with poor fundamentals go up, or stocks with great technicals go down? It’s obvious that something is missing. Author Adam Sarhan, Founder and CEO of 50 Park Investments, developed a new approach, titled, Psychological Analysis (PA). Coined by the author, the term teaches you how to make rational, not emotional, decisions with your money and shows you how to analyze both the individual and collective market mindset at a particular time based on the behavior and decision-making of people in the real-world. Psychological Analysis is designed to tip the odds of success in your favor.

After studying every major economic and market cycle going back to the 3rd century, the author explains that human nature is the one constant and tells you what actually drives markets. Psychological Analysis is responsible for major and minor market moves today, tomorrow, and all throughout history. Adam shows you that there are more factors that influence price than just fundamental or technical analysis and how to bring out the smart money superhero inside you. This invaluable guide helps you:

Make rational, not emotional, decisions with your money—especially when you are under pressure
Understand the psyche of the market so you can learn how to join the Smart Money Circle and consistently take money out
Generate above average returns in all market environments
Incorporate Psychological Analysis into your overall trading and investing strategy so you can make smarter decisions on and off Wall Street

Psychological Analysis: How to Outsmart the Market One Trade at a Time is a must-have resource for traders, investors, finance professionals, and anyone who wants to profit regardless of market conditions.

Cover
Table of Contents
Title Page
Copyright
Dedication
Foreword
Prologue: You Deserve to Win and Be Rich
    SIMPLE BUT NOT EASY
    TWO TYPES OF MONEY
    YOUR BIGGEST OBSTACLE
    ACTIVATING YOUR SMART MONEY SUPERHERO
    THE FOCUS IS ON WALL STREET
Acknowledgments
About the Author
Disclaimer
CHAPTER 1: How to Think Like the Top 1%
    ENTREPRENEURIAL SPIRIT
    AN INVESTOR IS BORN
    MARKET TUITION
    THE ALLURE OF SPECULATION
    TAKING CONTROL
CHAPTER 2: Why You Aren't Beating the Market
    HOW I ACCIDENTLY STUMBLED ON MY SECRET WEAPON: PSYCHOLOGY
    PAPER TRADING
    BEATING THE MARKET
    ONE IDEA, PROPERLY EXECUTED
    PAIN AND PLEASURE
    PSYCHOLOGY OF SUCCESS
    SMART MONEY VERSUS DUMB MONEY
    THE INDESCRIBABLE QUALITY OF HUMAN NATURE
CHAPTER 3: The One Question You Need to Ask Before Getting Started
    ARE YOU AN INVESTOR OR A TRADER?
    WHAT IS “THE MARKET”?
    MARKET LEXICON
    THE (GREAT) AMERICAN TAILWIND
    MAKE THE TREND YOUR FRIEND
    INVESTING VERSUS TRADING
    TYPES OF INVESTORS
    SPECULATORS
    PROFITS ARE A FUNCTION OF TIME
    OPERATIONAL TIME FRAMES
    PICK YOUR TIME FRAME: SHORT, INTERMEDIATE, OR LONG TERM
    FUNDAMENTAL AND TECHNICAL ANALYSIS
    THE ANATOMY OF A TRADER
CHAPTER 4: How to Use Fundamental Analysis Like a Pro
    FUNDAMENTAL ANALYSIS 101
    VALUE VERSUS PRICE
    FUNDAMENTAL INDICATORS OF VALUE
    THE TROUBLE WITH FUNDAMENTAL INDICATORS
    CONFUSING NUMBERS AND CREATIVE ACCOUNTING
    STRONG FUNDAMENTALS? SO WHAT?
    THE MARKET IS A FORWARD‐LOOKING APPARATUS
    THE VALUE INVESTOR'S LONG‐TERM BET
    ANOTHER WAY OF DEFINING PRICE
CHAPTER 5: How to Use Technical Analysis Like a Pro
    WHAT IS TECHNICAL ANALYSIS?
    NAVIGATING THE AMERICAN TAILWIND
    BRIEF HISTORY OF TECHNICAL ANALYSIS
    DISCRETIONARY VERSUS SYSTEMATIC TRADING
    READING CHARTS
    FINDING PATTERNS IN STOCK CHARTS
    STAGE ANALYSIS: FOUR STAGES
    TRENDLINES—CONNECTING DOTS
    MOVING AVERAGES—SMOOTHING OUT PRICE ACTION
    FAST‐ AND SLOW‐MOVING AVERAGES
    SLOPE
    VOLUME
    TIGHT ACTION
    IDENTIFYING TOPS AND BOTTOMS
    EXPECT PULLBACKS AND CORRECTIONS; DON'T FEAR THEM
    TECHNICAL ANALYSIS IS MORE OF AN ART THAN A SCIENCE
CHAPTER 6: How to Develop a Winning Strategy That Beats the Market
    DEVELOP YOUR STRATEGY
    THREE DIRECTIONS
    THREE ACTIONS
    WHAT TO BUY
    SUPPORT AND RESISTANCE
    BREAKOUTS AND BREAKDOWNS
    ADVANCED ENTRY POINTS
    HOW TO BUY THE DIP—AFTER THE BOUNCE
    RISK AND REWARD
    DEVELOPING YOUR OWN STRATEGY
    PEOPLE LOVE STRUCTURE: DEVELOP RULES AND GUIDELINES
    RULES VERSUS GUIDELINES
    FIND YOUR EDGE AND EXPLOIT IT
    ARBITRAGE
    CREATE A PLAN, THEN TRADE YOUR PLAN
    KEEP IT SIMPLE
    THE A.M.P.D. INVESTMENT SYSTEM
CHAPTER 7: Psychological Analysis
    FIX YOUR MIND, FIX YOUR LIFE: CREATE A HEALTHY MINDSET AND OVERCOME A TOXIC ONE
    MENTAL CAPITAL
    HUMAN NATURE IS CONSTANT
    PAIN AND PLEASURE
    EMOTIONS ASSOCIATED WITH PAIN AND PLEASURE
    BREAKING OUT
CHAPTER 8: Master Your Mental State and Your Life Will Change
    YOUR RELATIONSHIP WITH MONEY
    UNDERSTANDING YOUR MENTAL STATE
    CONTROLLING YOUR INPUTS
    CONTROL YOUR FOCUS
    KEEP IT SIMPLE
    CONTROL YOUR DESIRES OR YOUR DESIRES WILL CONTROL YOU
    KNOW—AND MASTER—THYSELF
    MAKING GREAT DECISIONS
CHAPTER 9: How to Make Smarter Decisions
    GOOD VERSUS EVIL: SMART MONEY VERSUS DUMB MONEY
    THE DANGER OF EMOTIONAL LOGIC
    STUDY THE CROWD
    RETAIL VERSUS INSTITUTIONAL INVESTORS
    “THEY” WHO?
    ANALYZE THREE SIDES
    THEY (DON'T) WANT YOU TO LOSE
    THINK CLEARLY (A.K.A. ACCURATELY)
CHAPTER 10: What's Holding You Back?
    WHAT ARE MENTAL WALLS?
    A NEW WAY TO LOOK AT WEALTH
    MENTAL WALLS
    COGNITIVE BIASES
    BIASED THINKING: (DON'T BE) FOOLED BY RANDOMNESS OR THE EFFICIENT MARKET HYPOTHESIS THEORY
    STOP (OR LIMIT) YOUR BIASED THINKING
CHAPTER 11: Create a Smarter You with an Unbiased Mind
    ANCHORING
    CONFIRMATION BIAS
    IRRATIONAL ESCALATION BIAS
    CONSERVATISM BIAS
    HYPERBOLIC DISCOUNTING
    ILLUSION OF CONTROL
    INFORMATION BIAS
    NEGLECT OF PROBABILITY
    POST‐PURCHASE RATIONALIZATION
    STATUS QUO BIAS
    WISHFUL THINKING BIAS
    RISK AVERSION
    FRAMING BIAS
    DISPOSITION EFFECT
    DENIAL
    OUTCOME BIAS
    RECENCY BIAS
    HASTY GENERALIZATION
    GROUPTHINK
    HALO EFFECT
    PERSONAL BLIND SPOT BIAS
CHAPTER 12: Ever Hit a Wall? Destroy It and Master the Learning Cycle
    A WALK THROUGH ROCK CREEK PARK
    EGO
    FEAR
    PAIN
    SHORT‐TERM THINKING
    ADULTING WALL (OVERCOMING CHILDISH BEHAVIOR)
    LACK OF VISION WALL
    OTHER DUMB MONEY WALLS
    IDENTIFY YOUR WALLS AND DESTROY THEM
CHAPTER 13: The Most Important Skill to Master on Wall Street
    ALWAYS RESPECT RISK
    BASIC RISK MITIGATION STRATEGY
    WIN RATE (KNOW THE STATS)
    WHY WE CUT AND RUN FROM LOSERS
    ALWAYS REDUCE, NEVER INCREASE, RISK
    OTHER TYPES OF RISK
    LEVERAGE
    PSYCHOLOGICAL ANALYSIS
CHAPTER 14: What Happens Next
    THE RIGHT SIDE OF THE CHART—THE ONLY PLACE TO MAKE MONEY
    NAVIGATING THE UNKNOWN
    THE UNPREDICTABILITY OF MARKETS
    THE SMART MONEY LOOKS FORWARD
    FORGIVE AND MOVE FORWARD
    STOP TRYING TO PREDICT MARKET ACTION (INSTEAD LEARN TO EXPECT IT)
    DEVELOPING YOUR OWN WAY FORWARD
    TRADE IN THE NOW
CHAPTER 15: Welcome to the Smart Money Circle
    START SMALL AND SCALE SLOWLY
    THE LEARNING CYCLE
    THE TRADER'S HIERARCHY OF SUCCESS
    SEVEN TRADING PERSONALITIES
    PARTING THOUGHTS
Epilogue: It's Time to Become Rich
    ADAM'S QUICK TRADING GUIDE
    ENTRIES AND EXITS: BUY AND SELL GUIDELINES
    BUY THE BOUNCE AFTER THE DIP
    EXITS: BUY AND SELL GUIDELINES
    DRAWDOWNS
    ADAM'S SMART MONEY SECRETS
Bibliography
    BOOKS
    MOVIES
Index
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