Unfortunately, psychology plays a major role in people's investing decisions. These books will give you insight on psychological struggles that make us bad investors.
1. Investment Madness
John Nofsinger describes in detail how psychology affects your investing decisions and offers tips on what to do about it. The book is an easy read and touches on many of the important behavioral finance topics.
2. The Psychology of Investing (Wiley Investment)
Based on investing seminars given by investment professionals and educators. Studies the psychological aspects of investing with an academic focus. Better for people interested in researching this topic rather than people looking for guidance.
3. Beyond Greed and Fear
Understand what really influences the financial decision-making process. Interesting account of the behavioral finance research advances.4. The Psychology of Investing
This is John Nofsinger's first investing psychology book. Combines behavioral knowledge from psychology, management, marketing, economics, and finance.5. Investment Psychology Explained
Learn how impact of company announcements, mergers and world events on the market affect investor psychology and how you can take advantage of it. Learn how to evaluate your own psychological biases.6. Manias, Panics, and Crashes: A History of Financial Crises
Great book if you want to understand the way Greenspan looks at the market. The author makes several references to past historical economic or investment events but fails to recognize that most people don't know these.