I’m a bit of a freak when it comes to self improvement. Not the type of self improvement where you practice yoga, or an obsessive compulsive squeeky clean presentation (far from it these days actually!), but the type of self improvement where you try not to make a mistake twice, or where you passively aim to attain enlightenment without incense, or a religious affilliation.
If I only had a sentence to describe my life principle, it’s to try and see things as they really are. I think people who live this way are more likely to dose up on anti-depressants, alcohol, and cynicism.
Anyway, that’s me. Below you will find a few ideas that have defined my thinking over the last couple of years. If you are anything like me then you will find the stuff below incredibly useful and interesting. If you are nothing like me, then I envy your ignorant bliss but still think you will find the stuff below really useful - consider it homework that I’ve done on your behalf.
Attribution Bias
This describes when success is attributed to skill, and failure is blamed on bad luck. We are generally less skillful than we believe (this is apparantly well studied). 80%-90% of a class of students will rank themselves in the top 50% of the class.
Hindsight Bias
We all know what this is. The problem with hindsight though, is that we can forget that it was obvious after the fact. It is tempting to go on and predict the future, given how obvious it was to “predict” the past.
Survivorship Bias
Say you play a game of heads or tails with 10,000 people. Heads you win and stay in, tails you lose and are out of the game. On average, even after 10 coin tosses, there will still be 9 people left in the game out of pure luck (or skill, if you have missed my earlier point).
Falsification
It can be argued that Karl Popper defined science. He said that something is science provided it can be proven false. A typical example is astrology Vs astronomy. The bit that does my head in though, is it’s relation to the problem of induction. The anecdote typically cited is of the white swan/black swan. Before Australia was discovered (200+ years ago), you could partly define a swan as a white bird. But along comes the discovery of Australia and along with it, black swans! This makes me more humble and understanding of my limited abilities.
One thing that I find extremely interesting out of all of this is that we appear to live in a probalistic and imprecise world. On top of that, we are hindered by natural bias that amplifies all of that.
My thinking is still very muddy. But the above points (and others that
will come to me over time) have influenced my thinking greatly so far. I hope they are useful to you also.
Here’s a couple of entertaining podcasts that touch on the above points and others:
Robert Trivers
Nassim Taleb
technorati tags:philosophy, popper, bias, trading
Blogged with Flock