But it wasn't until recently that I first read his book Your Money & Your Brain. I wasn't avoiding reading it, but I guess because I've read so many. Your Money and Your Brain has ratings and 68 reviews. Jennifer said: stars. A fascinating survey of how the most primitive recesses of our brains. There's plenty of debate out there among people far more literate in science and economics than I regarding the merits of neuroeconomics, including.


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Your Money and Your Brain: He shows why we often misunderstand risk and why we tend to be overconfident about our investment decisions.

Your money and your brain

Then he draws lessons and offers original practical steps that investors can take to make wiser decisions. A vivid example of this is the stock of Celera Genomics Group. In SeptemberCelera began sequencing the human genome.

By identifying each of the 3 billion molecular pairings that make up human DNA, the company could make one of the biggest leaps in the history of biotechnology. Then, on June 26, Celera announced that it had completed cracking the code.

How did the stock react? Nothing had occurred to your money and your brain the company's fortunes for the worse.

Your Money and Your Brain by Jason Zweig

Celera had achieved a scientific miracle. The likeliest explanation is simply that the anticipation of Celera's success was so intense that reality was a your money and your brain. Getting exactly what they wished for left investors with nothing to look forward to, so they got out and the stock crashed.

The stuff of memories Researchers in Germany tested whether anticipating a financial gain can improve memory. A team of neurologists scanned people's brains with an fMRI machine while showing them pictures of objects like a hammer or a car.

Some images were paired with the chance to win half a euro, while others led to no reward.

The participants soon learned which pictures were reliably associated with the prospect of making money, and the scan showed that their anticipation circuits fired furiously when those images appeared. Immediately afterward, the researchers showed the participants a larger set of pictures, including some that had not been displayed inside the scanner.

Your Money and Your Brain | Book by Jason Zweig | Official Publisher Page | Simon & Schuster

People were highly accurate at distinguishing the pictures they had seen during the experiment and equally adept at recognizing which of those pictures had predicted a gain. Three weeks later the participants came back to the lab, where they were shown the pictures again.


This time people could even more readily distinguish the pictures that had signaled a financial gain from those that had not - although they hadn't laid eyes on them in 21 days! Astounded, the researchers went back and re-examined the fMRI scans from three weeks earlier.

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It turned out that the potentially rewarding pictures had set off more intense activation not only in the anticipation circuits but also in the hippocampus, a part of your money and your brain brain where long-term memories live.

That evidently switches on the amygdala, splashing emotion back onto your memory and changing your perceptions of the past. Your Money and Your Brain is a book that stands head and shoulders above the conventional pablum served up in most stock market books.


The Next Generation "As advertised, this book is about your brain, but yours is not the only brain in this book.