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Financial Understanding Beyond Surface
Misunderstanding positive expected value led to taking huge risks with a belief that any slight edge justifies the risk. Lack of probabilistic thinking resulted in the misconception that making money to save the world was a valid approach. Young individuals in the finance world tend to overlook the complexity of financial decision-making, viewing finance as a simplistic computer program rather than a nuanced field requiring thorough analysis and understanding of various factors. The oversimplified approach to finance and overlooking key concepts like time series analysis, valuation, and monetary policy can lead to catastrophic financial outcomes and a lack of essential skills for the future.