Calculating Risk & Reward: Using Science to Understand Markets & Intelligently Invest

What is most important skill for intelligent investing? The answer is simple: Decision making. But in order to make good decisions, you need the right information. But do retail investors have the knowledge they need to make intelligent investment decisions? Sadly, the answer is no. Approximately half of Americans don’t understand basic concepts of investing, let alone have more sophisticated knowledge of markets and investment strategies. You need to recognize the difficulty of investing. It is a complex activity. It is extremely difficult to plan wisely, stick to your plan, make the appropriate decisions to manage your money when new information arises, and to manage your emotions, especially fear and greed. All economists, and most financial professionals, recognize and respect the risk involved in investing. So should you. This is a short, clear book that simplifies the art of financial investing so as to help you make more intelligent choices. It explains both the fundamentals of investing and also some of the most important information that scientific researchers have discovered about investment strategies, economics, human psychology, and the structure of human society.