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Do you make these thinking mistakes?

By |August 19th, 2010|Tags: , , , , |

 

Through experience you have most likely realised that the human mind was not made for the world we are living in. Scientists have also proved it.

It was made for a time when quick decisions, fight or flight, was to our advantage.

Not for now when problems creep up on us over extended periods of time or when we have to gather information and make decisions over long periods of time.

I know I don’t need a scientific study to tell me that I sometimes make mistakes when deciding, don’t we all.

For example when investing I realised that I often made the mistake of hanging on to losing investments and selling profitable ones too soon. It was frustrating and I decided to do something about it.

I had to look quite long but eventually I came across the, then new field of research, called behavioural economics.

Behavioural economics tries to understand the economic decisions we make and why we make them.

What it found was with awareness and certain tools there are ways you can improve our decision making.

And this is what this article is all about, tools to help you make better decisions. Keep reading to the end of the article for a handy checklist you can you to improve your thinking.