Understanding Risk and How To Deal With It
There is often misunderstanding among the general public when it comes to probability and risk.
For example, 20% of Americans believe they are in the top 1% of income earners, or are soon to be there. This is, of course, statistically impossible.
Statistical thinking needs to have a bigger focus in our society, especially since the amount of data we have to deal with on a daily basis is constantly increasing. We need systems to help us sift through the noise.
Today’s episode is a selection of excerpts from some of the brightest minds of today and yesterday, and their takes on systematic and statistical thinking.
Though this is not strictly a trend following episode, all the material is very much applicable and relevant for anyone in trading or business.
From Penn Jillette (of Penn & Teller) to Gerd Gigerenzer, to Daniel Dennett, to Richard Feynman, this episode is permeated with wisdom to help you cultivate a trend following mindset.
In this episode of Trend Following Radio:
- Having a foundation, a system to get through the noise
- Developing a statistical mindset
- Understanding risk and knowing how to deal with it
- Getting “under the hood” of any trading system
- Richard Feynman’s lecture on computer heuristics
- What computer heuristics have to do with systems trading
- A trait that geniuses have in common
- The importance of isolation and concentration in learning
To begin listening, click play on the video at the top of this page, or below…
P.S. I originally posted this episode of Trend Following Radio, right here.