Snap Judgment

In Snap Judgment, David E. Adler examines how people’s instincts and intuitive judgments intersect with financial markets, and create decisions that are not beneficial to the individual investor. Snap judgments occur almost instantaneously. While most investors are prone to these types of decisions, Alder argues that people have an additional method of thinking at their disposal. This is called analytical intelligence, and it relies on rule-based decisions. Snap Judgment aims to suggest that investors can teach themselves to override their fundamental intuition and rely on analytical thought systems instead. With a thorough understanding of behavioral finance, rational investors can improve their chances of beating the market.