The Science
Every assessment on WealthPsychology is grounded in two decades of academic research — validated across more than 22,000 investors, traders, and businesspeople across multiple market cycles.
Every score in your report derives from one of three validated research traditions.
The Five Factor Model (OCEAN) is the most replicated personality framework in psychology — derived from factor analysis of thousands of descriptors, validated across 40+ years, cultures, and age groups. It consistently predicts behaviour across life domains including financial decision-making.
Kahneman and Tversky's Prospect Theory, Shefrin and Statman's disposition effect, and Odean's trading research underpin the 11 cognitive bias scores. Each bias has documented, replicable effects on real investor portfolios and active trader performance records.
Scores are compared against norms from 22,000+ test-takers across multiple market cycles — the 2007–09 financial crisis, 2013–2021 bull market, and 2020 pandemic. Z-scores show where you stand relative to real market participants, not an idealised standard.
Each personality trait and bias score is computed from a specific set of questions using formulas developed in the original research. Three bias scores — Over-Optimism, Emotional Vulnerability, and Immediate Gratification — are derived from your personality scores rather than individual questions, because research shows these patterns are driven primarily by personality rather than situational behaviour.
Your raw score is converted to a z-score using population means and standard deviations from 22,000+ test-takers. A z-score of 0 means exactly average; +1.0 means one standard deviation above average — approximately the top 16%.
Z-scores are assigned one of six descriptive labels: Very Low, Low, Below Average, Above Average, High, or Very High. These thresholds follow standard conventions from the personality research literature.
Your full pattern of z-scores across all 16 dimensions is matched to one of eight investor, trader, or businessperson archetypes using a decision tree of dominant trait and bias combinations.
The People Behind the Tests
Dr. Richard Peterson
Original Creator
MD, Psychiatry (Stanford)
Dr. Richard Peterson is a psychiatrist, behavioral finance researcher, and founder of the original investor psychology research programme. He received his MD from UT Southwestern Medical Center and completed his psychiatry residency at Stanford University.
His research on investor psychology has been cited in leading financial journals, referenced in the Wall Street Journal and Financial Times, and used by central banks, asset managers, and hedge funds worldwide. His two books — Inside the Investor's Brain (2007) and MarketPsych (2010) — remain foundational texts in behavioural finance.
The personality assessments and bias frameworks powering these tests were developed over two decades of clinical work with investors and 22,000+ test-takers across multiple market cycles.
Samuel Peterson
Director, WealthPsych
San Luis Obispo, CA
Samuel Peterson grew up watching his father's research shape how financial professionals understand their own psychology. With Dr. Peterson's full authorisation and blessing, Samuel took on the mission of bringing these assessments to a new generation of investors, traders, and businesspeople.
WealthPsychology is Samuel's effort to make these validated tools — previously available only through institutional channels — accessible directly to individuals. The scoring algorithms, population norms, and research foundations remain exactly as Dr. Peterson developed them. What's new is the delivery: a modern platform built to give anyone the same psychological insight that professional traders and fund managers have long had access to.
"My father spent twenty years building the science. My job is to make sure the right people find it." — Samuel Peterson
2003 — 2006
Dr. Peterson develops the foundational investor personality framework through clinical psychiatry practice and investor coaching. First large-scale testing begins.
2007
Inside the Investor's Brain published by Wiley Finance — the first book to systematically apply the Big Five personality model to investment decision-making.
2010
MarketPsych: How to Manage Fear and Build Your Investor Identity published. The test database passes 10,000 participants.
2010 — 2022
Population norms refined across three major market cycles. The database grows to 22,000+ test-takers. Trader and businessperson variants developed and validated.
2024
Dr. Peterson authorises Samuel Peterson to operate and expand the platform. WealthPsychology.com launches, bringing the complete test suite to individual investors for the first time.
Wiley Finance · 2007
The Power of Mind Over Money. The foundational text behind the personality and bias framework used in these assessments.
Wiley Finance · 2010
How to Manage Fear and Build Your Investor Identity. Co-authored with Frank Murtha, Ph.D. Extends the framework to practical investor coaching.