The new book reveals why most independent investors make the wrong investment decisions, and how they can invest scientifically and predictably and without losing sleep worrying about their portfolio.
SAN FRANCISCO, July 13, 2022 /PRNewswire/ — The new book – Build Your Wealth and Keep Your Health – reveals that 2 of 3 independent investors (66%) make instinctive or emotional investment decisions, which are often wrong, causing disappointment and loss of money. Moreover, since their investment selection is arbitrary, most independent investors also lose sleep worrying about their portfolio, according to Dr. Dan Geller, the author, a behavioral economist and the developer of the Scientifically Predictable investing model.
The book features the latest scientific research in the field of behavioral economics and finance on how people make investment decisions. Dr. Geller shows how they can improve their investment outcome. The research shows that people have two modes of financial decisions; instinctive, a.k.a. system 1, and analytical, a.k.a System 2. The instinctive-response mode originates in the reptilian part of the brain, which is in charge of survival. The analytical-response mode originates in the cortex part of the brain, which is used for analytical decisions.
Most independent investors use their instinctive-response mode to select stocks because it is a quick and easy way to make a decision, which often leads to a bad financial outcome. The scientific research shows that when the level of money anxiety increases, as it does during market volatility, people automatically default to their instinctive-response mode as a survival mechanism, he said.
According to John McCrank of Reuters, more than 100 million independent users/accounts exist at six of the top online brokerages. This means that more than 100 million investors make their own decisions on which equity to invest in and for how long. This book reveals how independent investors make investment decisions, and the reality is not pretty, Dr. Geller said. A survey published by MagnifyMoney reveals that 66% of independent Investors make impulsive or emotional investing decisions.
The research presented in the book shows that independent investors can avoid making instinctive-investment decisions by using scientific methodologies to select equities for investment. By using scientific investment models, such as Dr. Geller’s Scientifically Predictable Model, investors have high confidence in their investment decisions, which provides them with a peace of mind and an improved quality of life.
"Achieving higher returns is possible, and having peace of mind is possible," said Dr. Geller, "but can you have both at the same time?"
By investing scientifically and predictably independent investors have an edge over investors, who use instincts to select stocks. Moreover, independent investors, who use an analytical approach to investment decisions, can effectively compete with professional investors, who use scientific methodologies to invest, he said.
The purpose of the new book is to provide investors with a new investment philosophy that caters to both sides of the coin – earning a good return with high confidence and peace of mind. The mission of this book is to convey to investors the latest discoveries in decision science, and reveal to them the latest in the science of behavioral economics and finance.
Dr. Dan Geller is the President of Analyticom LLC, a financial modeling firm specializing in the application of behavioral economics to predictive financial models. Dr. Geller is a pioneer in the research of financial-decision making, specifically how people alternate between their instinctive-response mode (a.k.a system 1), and their analytical-response mode (a.k.a. system 2). Dr. Geller made a significant contribution to the field of decision science by showing that money anxiety is a major factor in people’s response to financial issues. The Theory of Money Anxiety has been peer reviewed and published in the Journal of Applied Business and Economics.
The authors of these documents are not brokers, dealers or registered investment advisors. The information contained in all featured documents are opinions only and are not intended as a solicitation, an offer, a recommendation to buy, hold, or sell any securities, products, service, investment or participate in any particular trading scheme in any jurisdiction.
Dr. Dan Geller
SOURCE Dr. Dan Geller