inside.jpgThe Big Picture has another book excerpt available online, this one on psychology and investing, Richard Peterson’s Inside the Investor’s Brain: The Power of Mind Over Money.

While I always cringe at statements like “happy people do X better”… The important point is that if you’re in a negative or distracted mood, it has a very real impact on your decision making process. You can still make good decisions when feeling negative, but the probability is lower, especially if you aren’t aware of the impact.

The excerpt is worth a quick read, and if you haven’t pondered much on the interaction between psychology and trading, this book should be a good read.