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4 Powers, R. 2005. Mark Twain: A Life. New York: Free Press, p. xi.

5 Twain, Mark. 1872. Roughing It, Chapter 26. Free Public Domain Books from the Classic Literature Library. http://mark-twain.classic-literature.co.uk/roughing-it/.

7 Ibid., Chapter 58.

9 Statman, M. 2003. “A Century of Investors.” Financial Analysts Journal 59(3) (May/June).

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12 Carhart, M. 1997. “On Persistence in Mutual Fund Performance.” Journal of Finance 52: 57-82.

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15 Georgette, J. 2002. “Putting Away the Darts after 14 Years: The Wall Street Journal’s Dartboard Ends Its Run.” Wall Street Journal, April 18.

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19 Fuller, R. 1998. “Behavioral Finance and the Sources of Alpha.” Journal of Pension Plan Investing 2(3) (Winter).

21 An average alpha computed from “returns since inception” versus the benchmarks. Taken from 2Q 2006 report. www.fullerthaler.com/QuarterlyReview/newsltr2006Q2.pdf.

22 Mauboussin, M. 2006. More Than You Know. New York: Columbia University Press.

24 Hirshleifer, D., and T. Shumway. 2003. “Good Day Sunshine: Stock Returns and the Weather.” Journal of Finance 58(3) (June): 1009- 1032.

25 Kamstra, M., L. Kramer, and M. Levi. 2003. “Winter Blues: A SAD Stock Market Cycle.” American Economic Review 93(1) (March): 324- 343.

26 Limpaphayom, P., P. Locke, and P. Sarajoti. 2005. “Gone with the Wind: Chicago Weather and Futures Trading.” 2005 FMA Annual Meeting conference paper. www.fma.org/Chicago/Papers/gloom_doom_weather_futures_trading.pdf.

27 Krivelyova, A., and C. Robotti. 2003. “Playing the Field: Geomagnetic Storms and the Stock Market.” Working paper, Federal Reserve Bank of Atlanta.

28 Yuan, K. Z., L. Zheng, and Q. Zhu. 2001. “Are Investors Moonstruck? Lunar Phases and Stock Returns.” September 5. http://ssrn.com/abstract=283156 or http://dx.doi.org/10.2139/ssrn.283156“\t”_blank.

29 Clarke, R., and M. Statman. 1998. “Bullish or Bearish?” Financial Analysts Journal, May/June.

30 Fisher, K., and M. Statman. 2000. “Investor Sentiment and Stock Returns.” Financial Analysts Journal, March/April.

33 Fisher, K., and M. Statman. 2004. “Sentiment, Value, and Market-Timing.” Journal of Investing, Fall: 10-21.

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1 Browning, E. S. 2006. “Keeping Cool amid Global Strife.” Wall Street Journal, July 17.

2 Cohen, J. 2005. “The Vulcanization of the Human Brain: A Neural Perspective on Interactions between Cognition and Emotion.” Journal of Economic Perspectives 19: 3-24.

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4 Kaufman, M. 2002. Soros: The Life and Times of a Messianic Billionaire. New York: Vintage, p. 140.

5 Cymbalista, F., and D. MacRae. 2004. “George Soros: How He Knows What He Knows, Part 1: The Belief in Fallibility.” Stocks, Futures, and Options, March 8.

6 Hirshhorn, D. 2007. Personal comunication, February 16.

7 Lefevre, E. 1923. Reminiscences of a Stock Operator. American Research Council.

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10 Peters, E., and D. Västfjäll. 2005. “Affective Processes in the Decision Making by Older Adults.” Papers from the Workshop on Decision Making Needs of Older Adults. Working Paper. //www7.nationalacademies.org/csbd/peters_paper.pdf#search=%22fear%20induction%20loss%20aversion%20curve%22.

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4 Loewenstein, G., and J. S. Lerner. 2003. “The Role of Affect in Decision Making.” In Davidson, R., H. Goldsmith, and K. Scherer (eds.), Handbook of Affective Science. Oxford: Oxford University Press, pp. 619-642.

5 Fredrickson, B. L. 2001. “The Role of Positive Emotions in Positive Psychology: The Broaden-and-Build Theory of Positive Emotions.” American Psychologist 56: 218-226.

6 Lyubomirsky, S., K. M. Sheldon, and D. Schkade. 2005. “The Benefits of Frequent Positive Affect.” Psychological Bulletin 131: 803-855.

7 Abbe, A., C. Tkach, and S. Lyubomirsky. 2003. “The Art of Living by Dispositionally Happy People.” Journal of Happiness Studies 4: 385- 404.

8 Bodenhausen, G. V., G. P. Kramer, and K. Süsser. 1994. “Happiness and Stereotypic Thinking in Social Judgment.” Journal of Personality and Social Psychology 66: 621-632.

9 Isen, A. M., and B. Means. 1983. “The Influence of Positive Affect on Decision-Making Strategy.” Social Cognition 2: 18-31.

10 Forgas, J. P. 1991. “Affect and Social Judgments: An Introductory Review.” Emotion and Social Judgments, ed. J. P. Forgas. Oxford: Pergamon Press, pp. 3-29.

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13 Isen, A. 1999. “Positive Affect.” Handbook of Cognition and Emo tion, ed. T. Dalgleish and M. Power. Chichester, England: John Wiley & Sons.

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23 Bodenhausen, D., L. Sheppard, and G. Kramer. 1994. “Negative Affect and Social Judgment: The Differential Impact of Anger and Sadness.” European Journal of Social Psychology 24(1): 45-62.

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26 Read, D., and G. Loewenstein. 1999. “Enduring Pain for Money: Decisions Based on the Perception and Memory of Pain.” Journal of Behavioral Decision Making 12(1): 1-17.

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29 Mellers, B. A., A. Schwartz, K. Ho, and I. Ritov. 1997. “Decision Affect Theory: Emotional Reactions to the Outcomes of Risky Options.” Psychological Science 8: 423-429.

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1 Securities and Exchange Commission 2000. “SEC Brings Fraud Charges in Internet Manipulation Scheme: Settlement Calls for Return of $285,000 in Illegal Gains.” Case 2000-135. Washington, D.C., September 20, 2000. Securities and Exchange Commission Press Release. www.sec.gov/news/press/2000-135.txt.

2 Lewis, M. 2001. “Jonathan Lebed: Stock Manipulator, S.E.C. Nemesis—and 15.” New York Times Magazine, February 25.

3 “Pump and Dump.” 2000. 60 Minutes. CBS News: New York, October 19.

4 Berg, S. Z. 2000. “Fraudulent Stock Schemes Still Vexing Investors, SEC.” TheStreet.com: Personal Finance: Investing. TheStreet.com. December 16.

5 Elsbach, K. D., and Barr, P. S. 1999. “The Effects of Mood on Individuals’ Use of Structured Decision Protocols.” Organizational Science 181: 185-194.

6 Office of the New York State Attorney General Eliot Spitzer. 1999. “From Wall Street to Web Street: A Report on the Problems and Promise of the On-line Brokerage Industry.” Prepared by Investor Protection Internet Bureau and Securities Bureau, 1189 PLI/Corp 355, 395 (1999). www.oag.state.ny.us/investors/1999_on-line_brokers/brokers.html.

7 Kahn, J. 1999. “On-line Brokerages Use Advertising in a Battle for New Customers.” New York Times, October 4. www.nytimes.com/library/tech/99/10/biztech/articles/04trad.html.

8 Nofsinger, J. R. 2001. Investment Madness: How Psychology Affects Your Investing . . . and What to Do about It. Upper Saddle River, N.J.: Prentice Hall, p. 129.

9 Levitt, A. 1999. “Plain Talk About On-line Investing.” Speech at the National Press Club (May 4); see also Report of NASDR Concerning the Advertisement of On-line Brokerages (September 21, 1999).

11 SEC Office of Compliance Inspections and Examinations. 2001. “Examinations of Broker-Dealers Offering On-line Trading: Summary of Findings and Recommendations” 1 (January 26). www.sec.gov/news/studies/online.htm.

12 Cassidy, J. 2002. “The Greed Cycle: How the Financial System Encouraged Corporations to Go Crazy.” The New Yorker, September 23.

13 Krugman, P. 2002. “Greed Is Bad.” New York Times, June 4.

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18 Knutson, B., C. S. Adams, G. W. Fong, and D. Hommer. 2001. “Anticipation of Monetary Reward Selectively Recruits Nucleus Accumbens.” Journal of Neuroscience 21: RC159.

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Introduction

Chapter 1: Markets on the Mind

Chapter 2: Brain Basics

Chapter 3: Origins of Mind

Chapter 4: Neurochemistry

Chapter 5: Intuition

Chapter 6: Money Emotions

Chapter 7: Joy, Hope, and Greed

Chapter 8: Overconfidence and Hubris

Chapter 9: Anxiety, Fear, and Nervousness

Chapter 10: Stress and Burnout

Chapter 11: Love of Risk

Chapter 12: Personality Factors

Chapter 13: Making Decisions

Chapter 14: Framing Your Options

Chapter 15: Loss Aversion

Chapter 16: Time Discounting

Chapter 17: Herding

Chapter 18: Charting and Data Mining

Chapter 19: Attention and Memory

Chapter 20: Age, Sex, and Culture

Chapter 21: Emotion Management

Chapter 22: Change Techniques

Chapter 23: Behavioral Finance Investing