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4min chapter
Methinks it is a weasel
Think with Pinker
The Power of Emotions
How can we get people to cultivate an ear for statistical noise? I would boil it down to three simple rules, if you want the three ss, calm, context and curiosity. Emotions are a huge influence on the decisions that we make. We're guided by our emotions. And in the case of finance, very simply, this mutual fund is telling me they've achieved a 20 % return for five years. But how many other funds have they got? Or even just what's a fair comparison? How's 20 % compared to the stock market as a whole? The final point of curiosity is just, always, just treating each new piece of information as a as an opportunity to ask questions
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