Chapter 6 is where Harris explains the actual machinery that matches buyers with sellers. If you ever wondered what happens between the moment you hit “buy” and the moment your order fills, this is the chapter.
This is a retelling of Chapter 6 Part 1 (sections 6.1 through 6.6) from “Behavioral Finance for Private Banking” by Thorsten Hens, Enrico G. De Giorgi, and Kremena K. Bachmann (Wiley, 2018).
Chapter 7 of Behavioral Finance and Investor Types by Michael M. Pompian is where theory finally meets practice. After six chapters of background, frameworks, and definitions, you actually get to take the quizzes and figure out what type of investor you are. Two quizzes, to be specific.
Chapter 4 of Investing Psychology is where Tim Richards talks about something we all deal with but rarely notice: other people messing with our financial decisions. Not on purpose. Just by existing around us.
Chapter 10 opens with a Warren Buffett quote: “Risk comes from not knowing what you’re doing.” Hard to argue with that. Travers uses this chapter to walk us through the risk due diligence process, and honestly, some of the findings are pretty eye-opening.
In Chapter 16, Larry Harris introduces us to the Value Traders. While dealers provide “immediacy” for small orders, value traders provide “depth” for the massive moves. They are the market’s ultimate safety net.
In Part 1 we covered trading sessions and the main execution systems: quote-driven dealer markets and order-driven markets. Now let’s get into brokered markets, hybrid structures, crossing networks, and the information plumbing that holds everything together.
In Part 1 we covered the big picture of operational due diligence and why so many hedge fund failures trace back to operational problems. Now in Part 2, Travers lays out exactly what to check, what questions to ask, and then shows us a real example interview with the operations team at Fictional Capital Management (FCM).
Previous: Chapter 3 Part 1
We’re still in Chapter 3 of Tim Richards’ “Investing Psychology.” In Part 1, we covered how situations mess with your head. Now let’s talk about something even weirder: your mood, the weather, and why shouting “Fire!” in a theater is basically what happens during a market crash.
This is a retelling of Chapter 5 (Diagnostic Tests for Investment Personality) from “Behavioral Finance for Private Banking” by Thorsten Hens, Enrico G. De Giorgi, and Kremena K. Bachmann (Wiley, 2018).