Michael Covel's Trend Following cover image

Ep. 1306: It's Always Mindset with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

00:00

The Dichotomy of Intuitive and Deliberate Thinking

In decision-making contexts, individuals often rely on intuitive thinking, or System One, which operates unconsciously and impulsively, frequently imitating others’ successful actions without careful deliberation. This behavior leads to a lack of systemic planning and forethought, as seen in the tendency to follow trends or cues from peers. The influence of luck in uncertain scenarios fosters superstitious beliefs as outcomes are less clear. Historically, immediate feedback from actions favored decisiveness and clarity, but modern complexities introduce errors in judgment, culminating in false positives and negatives. This reliance on instinct often leads people to mistakenly believe they are engaging in System Two thinking, which is more deliberate and self-aware, but they predominantly operate from System One. The contrast between instinctive and reflective decision-making not only shapes perceptions of self but also informs the ways individuals justify their choices and behaviors in varying contexts.

Play episode from 01:03:48
Transcript

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
Get the app