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Thinking Fast and Slow


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Thinking Fast and Slow

  #1 (permalink)
 
rahulgopi's Avatar
 rahulgopi 
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This is an interesting read to draw awareness into the flaws of our thinking system. How we form biases while drawing conclusions and how most of the time it is flawed and not statistically sound. Intuition as per Daniel Kahneman is a bye-product of practice and experience. Experience draws statistically sound conclusion while a novice may draw biased and flawed conclusion given the same problem / situation. Very apt reading for traders, even thou bit long .

>-----<
which line is longer ?
<----->

A bat and ball together cost $1.20. Bat is $1 more than the ball. How much does each one cost ?

Observe the first answer that comes to your mind, the fast one

https://www.amazon.com/Thinking-Fast-Slow-Daniel-Kahneman/dp/0374533555

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  #3 (permalink)
 
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 LukeGeniol 
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I have this book and is very interesting, Kahneman done a real good work in economical psychology, especially concerning human judgment and decision theory in conditions of uncertaint, for which he won a nobel prize.

Take your Pips, go out and Live.
Luke.
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 Grantx 
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Started reading this and possibly one of the most interesting books I have ever read.

One experiment cracked me up:


Quoting 
I conclude with a perfect demonstration of a priming effect, which was conducted in an office kitchen at a British university. For many years members of that office had paid for the tea or coffee to which they helped themselves during the day by dropping money into an “honesty box.” A list of suggested prices was posted. One day a banner poster was displayed just above the price list, with no warning or explanation. For a period of ten weeks a new image was presented each week, either flowers or eyes that appeared to be looking directly at the observer. No one commented on the new decorations, but the contributions to the honesty box changed significantly.

On average, the users contributed almost three times as much in “eye weeks” as they did in “flower weeks.
Average 15p per week on 'flower weeks'.
Average 70p per week for 'eye weeks'.


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Some trader psych courses use that book.

Another one that many people like is "The Chimp Paradox".

With the Chimp being System 1 and the Human being System 2.

I now see that whenever I go on tilt when trading, it's the chimp coming out of his closet and sitting down at the control panel.



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 Grantx 
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suko View Post
Some trader psych courses use that book.

Another one that many people like is "The Chimp Paradox".

With the Chimp being System 1 and the Human being System 2.

I now see that whenever I go on tilt when trading, it's the chimp coming out of his closet and sitting down at the control panel.

A few months back I would have believed that.
Not so sure anymore. The duality thing is another rabbit hole.

My explanations are so clumsy but an attempt:
There is no separation.. It is all you. Mind is a very convincing narrator. It conjures sacrificial scapegoats to divert attention away from itself and then adopts an imaginary position of authority.


Alan Walker says it better in lyrics:

Hello.
Nice to meet you, voice inside my head
Is this a place that I call home
To find what I've become
We live, we love, we lie


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 xplorer 
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Grantx View Post
There is no separation.. It is all you. Mind is a very convincing narrator. It conjures sacrificial scapegoats to divert attention away from itself and then adopts an imaginary position of authority.

That would indicate separation

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 rahulgopi 
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Carl Jung called them Architypes, the different personalities of mind. I was taming my Orphan, getting advice from Sage, feeling courageous with the Warrior, it was a struggle to keep up the drama . My wife used to think I was having a mental breakdown, as I was in loud conversation with these personalities while trading .

Advaita considers duality an illusion. Ego, the idea of individuality, is very powerful and have its own perseverance strategies. Here are few ego strategies that deter one from transcending the Ego itself

1) Ego likes to scatter attention. Thinking scatters attentions.
2) Ego likes to direct attention outwards. Creating unnecessary activities is one way ego directs attention outward. Observe how one automatically picks up phone or browse thru TV, when attention is needed.
3) Imaginary mental journeys
4) All thoughts are ego's tricks, wasting time is another one.
etc etc.

The point is, the more we struggle thru the mind and its drama, we are empowering Ego, the idea of individuality. All our thoughts , feelings, emotions and experience arise in our consciousness. The very fact that we are able to be conscious of this consciousness or aware of the awareness, shows that we are something beyond consciousness. I am in search of that . A lot of my early readings and ideas turned counter-productive and irrelevant.

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 Grantx 
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xplorer View Post
That would indicate separation

Conceptual clinging is what it is. Just because you think it doesn't mAke it true.

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 xplorer 
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Grantx View Post
A few months back I would have believed that.
Not so sure anymore. The duality thing is another rabbit hole.

My explanations are so clumsy but an attempt:
There is no separation.. It is all you. Mind is a very convincing narrator. It conjures sacrificial scapegoats to divert attention away from itself and then adopts an imaginary position of authority.




Grantx View Post
Conceptual clinging is what it is. Just because you think it doesn't mAke it true.

So, on a more serious note, I disagree: at least in my experience, there definitely is a monkey, there is definitely a S1 and a S2 system.

We do it all the time. We like to think of ourselves as rational beings but there's a component that has prejudice, is quick to make assessments (right or wrong) and impulsive.

Rahulgopi mentioned the Junghian model - that could be one way to look at it. The Freudian model is another. A book I indicated a while back to you, called "The Master and His Emissary" and written by a neuroscientist postulates as much: two brain hemispheres which appear to be in constant struggle for power.

At the end, it is, of course, all you, but there is a more rational you and a more irrational one.


If it weren't the case, there would be no wars or conflict and we all would be spending all of our time improving the self - and yet, I can't be bothered to finish that speed-reading book I purchased 18 years ago.

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