Resources and Links

Wealth Management

  • Success Traits of Financial Advisors, 2008-2011. Based on a MarketPsych survey, this paper looks at the emotional and communications skills of financial advisors who thrived during the financial crisis and its aftermath. [FASuccessTraitsSurveyResults.pdf]
  • Developing Emotional Intelligence Skills to Help Clients in Distress. This article looks at simple techniques for financial advisors to help clients manage their financial emotions and prevent them from making emotion-induced mistakes. [Peterson_PrivateWealthManagement newsletter 20101210_FINAL.pdf]
  • Emotional Commmunication Strategies to Build Your Advisory Business. This article presents the I-D-E-A-S script for communicating effectively with emotional clients. [IMCA_EmotionalCommunicationStrategies_REPRINT.pdf]
  • MarketPsych’s MEMRI Script: A Cognitive Screening Tool for Financial Advisors and Their Clients. This article introduces a tool to help financial advisors evaluate signs of cognitive impairment that may adversely impact their clients’ financial decision making. [MEMRI_script_MarketPsych_2012-03-26.pdf]

Investment Psychology

  • Chapter 1 of MarketPsych: How to Manage Fear and Build Your Investor Identity. This is the introductory chapter of our book designed to help investors grow their wealth by aligning who they are with how they invest. [c01_MarketPsych.pdf]
  • Change Techniques: Chapter 22 of Inside the Investor’s Brain. This chapter introduced self-help style tips and techniques for investors to improve their emotion management. [InsideInvestorsBrain_Chapter22.pdf]
  • Top Traits of Investors During the Market’s ‘Lost Decade’ of 2000-2010. This paper reviews findings from our Investment Personality Test on the personality-based success traits (and vulnerabilities) of investors. [20110115_Traits-Of-Successful-Investors_MarketPsychWhitePaper.pdf]
  • Gain a Trading Edge Learn about the optimal personality traits and state of mind for trading successfully in the markets. This is a summary of academic research through June, 2005.
  • Tips from Neurofinance Learn how new discoveries in neuroscience can help you make better investment decisions, and get to the bottom of your own Greed and Fear.

Scholarly Work

  • Neurofinance. A 2013 behavioral finance textbook chapter outlining the principles and practical contributions of neurofinance to investment management. [Chapter23_Neurofinance_Peterson_2013-06-17.pdf]
  • Affect and Financial Decision-Making: How Neuroscience Can Inform Market Participants. This 2007 paper examines how neural circuits underlying the emotional systems of the brain influence financial decision making. [Peterson07_NeuroscienceOfInvestingProofs.pdf]
  • Neuroscience and Investing FMRI of the Brain's Reward System. This paper has been published by Brain Research Bulletin. It outlines how neuroimaging research on the brain's reward system can improve investor psychology and inform investment strategy.
  • "Buy on the Rumor:" Anticipatory Affect and Investor Behavior Dr. Peterson's market modeling research in the Journal of Psychology and Markets, v3, n4, 2002. Describes the psychology underlying the "Buy on the rumor and sell on the news" price pattern. Presents a trading strategy for exploiting this anomaly.
  • The Trading Athlete (book review) This book review by Dr. Peterson examines various approaches to trading psychology and performance enhancement. Appeared in the Journal of Behavioral Finance, v4, n2, 2003.
  • Decisions, Uncertainty, and the Brain: The science of neuroeconomics (book review) This book review by Dr. Peterson provides an overview of Paul Glimcher's excellent book on neuroeconomics and neural decision making. In press for the Journal of Behavioral Finance, 2003.
  • Demystifying the Markets with Neuroscience This brief article outlines recent findings in neuroeconomics research. Both irrational investor decision making and market price anomalies may be partially understood with a basic understanding of brain functioning.
  • Investing Lessons from Neuroscience: the brain's reward system The brain's reward system assesses potential rewards and motivates reward pursuit behavior. Certain aspects of information about potential rewards asymmetrically activates the brain and motivates our investing behavior.

Neuroeconomics Resources