The Psychology of Investors: How They Make Decisions

The psychology of investors shown in a group of happy business people in front of city buildings

How do investors choose between being risk-tolerant and risk-averse? What role do greed and fear play in an investor’s decision? In Mastering the Market Cycle, Howard Marks discusses how oscillations in these cycles impact investors’ psychology. In particular, he explains how shifts in foundational cycles lead to a psychological cycle between fear and greed that, in turn, causes a cycle between risk tolerance and risk aversion.  Below we’ll explain the psychology of investors.

Greed and Fear in the Stock Market: The Investor’s Emotional Cycle

A cartoon of a stressed man at a desk surrounded by monitors showing stock trends, representing greed and fear in the stock market

Why are greed and fear the two most impactful emotions in the stock market? How does an investor’s greed increase fear? According to Howard Marks, the psychological cycle that influences the securities market most is the cycle between greed and fear. These two emotions result in rash decisions that cause economic swings. Keep reading to learn more about the role of greed and fear in the stock market.

Scott Galloway: Relationships Are Central to a Fulfilling Life

A father, mother, and two kids, seen from behind, holding hands and walking in a park illustrates fulfilling relationships

What makes a relationship truly fulfilling in today’s world? How can we build lasting connections that contribute to our happiness? According to Scott Galloway, relationships that are meaningful have certain fundamental elements. His insights in The Algebra of Happiness reveal how our connections with others—and within ourselves—shape our well-being, success, and overall life satisfaction. Keep reading to discover Scott Galloway’s relationship wisdom that can transform your approach to building deeper, more meaningful connections.

How to Handle Negative Emotions and Use Them for Growth

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Why do some emotions feel so overwhelming? What if there was a way to use challenging feelings to grow as a person? In her book, The Language of Letting Go, Melody Beattie explores how to handle negative emotions with grace and wisdom. Her insights provide practical strategies for managing difficult feelings while maintaining emotional balance and personal growth. Discover powerful techniques that can help you confidently navigate your emotional landscape and emerge stronger on the other side.

Risk Tolerance vs. Risk Aversion: How Emotions Run the Market

A man looking at stocks on computer screens, deciding between Risk tolerance vs risk aversion

How do investors cycle between risk tolerance and risk aversion? When is the market at its riskiest? Howard Marks contends that as a result of the fluctuations between greed and fear, most investors alternate between being overly risk-tolerant and overly risk-averse. Risk tolerance leads to inflated securities prices, eventually leading investors to become risk averse because of these excessive prices. Discover how Marks explains risk tolerance vs. risk aversion, and how the former can cause the latter.

What Causes Mental Illness in the Brain? The Toxic Process

A brain with a sad face, representing what causes mental illness in the brain

What kind of effect does mental toxicity have on your body? How do unhealthy thoughts lead to mental toxicity and mental illness? Caroline Leaf says that unhealthy thinking is what causes mental illness in the brain, not deficiencies or abnormalities in your physical brain. She refers to this as mental toxicity. Let’s look at the process of mental illnesses forming in the brain, from an unhealthy thought to toxic energy.

What Drives the Stock Market? The Psychological Factors

A red graph showing what drives the stock market

Are you looking to invest in the stock market? What drives the stock market? According to Howard Marks, the securities market cycle fluctuates per shifts in investor psychology that depend upon underlying foundational cycles. He argues that positive investor psychology drives bubbles in which securities become wildly overpriced, leading to crashes in which they become underpriced. Below we’ll look at what makes prices go up or down in the market.

Cleaning Up Your Mental Mess by Caroline Leaf: Overview

A woman reading a book in a therapist's office

What’s Cleaning Up Your Mental Mess by Caroline Leaf about? Do you need a mental detox? In Cleaning Up Your Mental Mess, Caroline Leaf discusses mental toxicity, its sources, and its effects on the brain. She explains her solution to mental toxicity, neurocycling, and how you can practice it. Read below for an overview of the book Cleaning Up Your Mental Mess.

Unmasking Autism (Devon Price): Book Overview & Takeaways

Woman with curly blonde hair and a turtleneck sweater sitting on a comfy sofa at home and reading a book

Have you ever felt as though you’re presenting a phony version of yourself to the world? Do you feel the need to consciously put on a “mask” in order to get through each day? In his book Unmasking Autism, Devon Price explores how Autistic individuals often hide their natural traits to fit into a neurotypical world. He shares insights about the costs of this masking behavior and provides guidance for embracing your true self. Continue reading for an overview of this book that reveals Price’s revolutionary perspective on Autism, identity, and the path to authentic living.