It is time to re-think thinking

Our job is two-fold: #1) interpret the research and #2) figure out how to apply it to help you the fund manager, head trader or financial company executive.

We execute on this job with the foundation of the following ideas.

• The Social Markets Hypothesis – the real game of markets is predicting human behavior – not probabilities.

• Probabilities are only a tool on the journey to the best prediction. All tools should be leveraged in the context of making the best judgment.

• Thought needs feeling to make a decision – the trick is learning to interpret feelings in order to tap into the vast resource of unconscious knowledge (implicit learning and memory) accumulated in your brain and to distinguish intuition from impulse.

We draw on the empirical work of Neuroeconomics and Behavioral Finance to help executives of financial companies, head traders and risk management teams optimize their perceptions of risk and increase their skill in making optimal judgment calls.

For the Social Markets Hypothesis, check out this short article in CME Group magazine and for the neuroeconomics brief read our guest post at AllAboutAlpha.com.

Look for our book RISKY BUSINESS, IT ISN’T WHAT YOUR BRAIN THINKS in late 2010 (hopefully!)