Thinking, Fast and Slow

📚 just finished reading with Daniel Kahneman's "Thinking, Fast and Slow."

The book is not taught to be smarter, but to know where you don't know yet. 😅

Here are 20 things to rethink. 👇

1️⃣ Our brain has two systems.

System 1, think fast, automate, instinct.

System 2 is slow to think, rational, but very lazy.

The problem is, we let System 1 decide on behalf of almost everything.

And then have System 2 reason to support it later without even knowing it.

2️⃣ Anchoring Effect, the first number seen always embedded in the heart.

Even knowing that number has nothing to do with it.

The store set a high price first and then reduced it, and we felt that it was worth it, even though the price after the discount was the price they wanted to sell in the first place.

This is why good sellers always offer numbers first.

3️⃣ Availability Heuristic believes things that are easy to think of.

More afraid of plane crashes than car accidents, even with the opposite statistic.

Because the news of a plane crash is louder than the brain, we do not use real data, but "easy to think of" as the judge.

The sooner you think about it, the bigger it feels and more often it's born.

4️⃣ Halo Effect. Like the face. Like everything.

Seeing someone who looks good, speaks well or dresses well

We will automatically view everything as optimistic, capable, reliable and intelligent.

...This is why First Impression is so important and so difficult to change later.

5️⃣ Substitution unknowingly answered the wrong question.

When you encounter too difficult a question, the brain secretly turns into an easier question and returns.

For example, "How happy is your life?" The brain secretly changes to "Is it in a good mood now?"

And answer emotionally at that second instead.

We think we answer big questions, but we actually answer only small questions.

6️⃣ Overconfidence, the more adept. The more careful...

Research has found that experts are more confident in prediction than actual accuracy.

Investors, analysts, doctors are all overconfident.

More knowledge, but the uncertainty of the world does not diminish accordingly.

Knowing you don't know is the beginning of a better decision.

7️⃣ Planning Fallacy A fancy plan, but real life isn't.

We always underestimate time, budget and difficulty.

Because when planning, we think only of the best cases, not of obstacles, delays, or the unexpected.

The solution is to ask, "How much time do other people do this?" and use that number instead.

8️⃣ Narrative Fallacy, life has no narrative, but we like to create it.

After the events, we often make stories that seem very rational.

It's probably just a coincidence.

Our brains don't like coincidence, they always need "cause and effect," so they make up stories to feel that the world is predictable.

9️⃣ Regression to Mean, which day is doing super well, irregular, the next day is often normal, the day is very broken, the next day is often better, not because we try more or less, but because life is always going back to the middle value, do not be angry with yourself when the results are bad, and stop thinking that you are very good, when the results are unusually good, good results do not always come from skill.

🔟 Loss Aversion feels the pain of losing harder than feeling the pleasure of getting 2 times.

...Losing 1,000 baht is more painful than winning 1,000 baht.

This is why we hold losses for too long and sell profits too quickly.

Loss Aversion makes us decide to "avoid losing" rather than "seek something better."

And often it makes us miss the best chance of life.

1️⃣1️⃣ Framing Effect Same Quote Totally Different Feelings

"90% surviving" and "10% dying," the same data, but the brain receives very differently.

Framing an idea with the words "profit" or "loss" immediately changes the decision.

Marketers and politicians know this very well and use it against us every day without us knowing it.

1️⃣2️⃣ Sunk Cost, the more invested. The more dare not stop.

We watched a boring movie until the end because we bought a ticket.

We're in a bad relationship because we've invested a lot of time.

The cost is gone. No matter what you choose next,

The correct question is, "If we start again today, will we choose this?"

1️⃣3️⃣ Endowment Effect of the one we hold is always more valuable in our hearts.

If you give me a coffee mug and tell me to sell it, we will pay a higher price than anyone else wants to pay.

Because just holding it automatically makes it more valuable in our hearts.

This is why free trial before buying makes it much easier for people to make decisions.

Because when you hold it, the brain feels like it's lost.

1️⃣4️⃣ Experiencing Self vs Remembering Self We live by memories, not real feelings.

The experienced self and the remembered self...Not the same person.

We always make decisions and plan lives with Remembering Self.

But the real life we use every day is Experiencing Self.

The question is, do we live for "real experience" or "beautiful memory"?

1️⃣5️⃣ Peak-End Rule, we remember from the peak and the last period.

...Not the average of all, but the most felt and final phase.

Like a fun trip but a traffic jam, not as well remembered as a smooth trip home.

This is why good restaurants give free desserts at the end.

And why Last Impression is as important as First Impression

1️⃣6️⃣ Neglect Duration The brain does not remember how long it is, but remembers how it ends.

Have you ever noticed... that 7 days of fun trips, but the last day of a fight?

Come home and feel that this trip is "not very good," which has always been fun.

That's because the brain doesn't calculate all happiness. It only remembers the "most felt" and the "ending."

So whether it's closing a deal, ending a meeting, or even ending a conversation, always end well. 😊

1️⃣7️⃣ Focusing Illusion, what the focus is always looks more important than reality.

Kahneman says, "Nothing is as important as you think it is while you are thinking about it."

When you think about money, you feel like money is everything.

When I was sick, I felt that health was the only thing that mattered.

But when we get sick, we worry about money - our brains focus on what's in front of us!

Trusted Intuition 1️⃣8️⃣ must come from experience with clear feedback.

Doctors who diagnose the disease accurately because they see the results clearly and quickly.

But financial analysts who predict the stock market, that instinct doesn't work.

Because the feedback is slow, unclear and there are too many variables.

Intuition is good on a repeatedly practiced field, but terrible on a complex and uncertain field.

1️⃣9️⃣ Happiness has two types and is not the same.

Experienced Happiness is happiness in everyday life. Good little moments.

Life Satisfaction is satisfaction when looking at life snapshots.

The richer makes Life Satisfaction taller, but doesn't make Experienced Happiness much better.

We grab things that feel good in memory, but may miss out on real happiness every day.

2️⃣0️⃣ last lesson, know yourself more, not just smarter.

This book doesn't tell us to give up System 1.

But let me know that it works all the time and can always go wrong.

Thinking slows down important matters, questioning first feelings, and listening to information that contradicts old beliefs.

Is the most powerful skill a human can have.

Which one is the most pleasing to you? Comment please. 💬

🫳📖

# ThinkFastAndSlow # DanielKahneman # Psychology # Mindset # Decision# Self-improvement # SelfDevelopment # Psychology #