This is really confusing for a numbers guy…
I am about to give a talk on what I call “emotion analytics”…. because to me, I really don’t see any reason that we can’t get as systematic and effective about analyzing our feelings and emotions as we are about analyzing markets or anything else.
But what is simple to me… doesn’t necessarily come easily to people who are much better at differential equations than I am. In fact, it came to my attention that a listener to a recent talk I gave on DEALING WITH UNCERTAINTY, kept typing into the chat “this is really confusing for a numbers guy”.
Well first I am literally talking about CONSCIOUSNESS. Second – I am talking about PERCEPTION. Now both topics have been debated at least since the days of the Romans and I feel fairly comfortable betting on the subjects being discussed for as long as man has had language… So granted, it isn’t easy.
But is there any game in the whole world that is more a game of perception than markets? I honestly don’t so …
Therefore, it would seem that be best way to play this game better is to get better at understanding our own perceptions.
Last week an author named Fowler made the comment “Almost everything we think, do or feel is a result of our social networks”. He is a professed at UC-San Diego and he has a point. We here call it the “social/emotional context”. To make the social emotional context explicit – even in trading (hec always in trading) sets us up to make better decisions.
Call it the human condition – under risk.