Key Points
Both his books, Thinking Fast And Slow, and Noise, that he co-wrote, are among my top five of all time..
Explains why, however many times the Securities and Exchange Board of India (Sebi) points out that less than 10% of options and derivative traders make any money at all, there are enough people jumping in, thinking they will defy the odds..
There are dozens of other biases he explains: Survivorship bias, where we remember only the successes, for example, stocks that have done well, and forget the rest; Sunk cost fallacy, where we invest more time and money on anything from a business to a relationship, simply because we have invested in the past; Halo effect, Anchoring effect, Framing fallacies and many more..
One key takeaway: a well designed algorithm, or rule-based system, will almost always beat a so-called experienced expert in any area of human enterprise that requires judgement..
In a sense, this book is an endorsement of the path which we chose at First Global to put all our years of research expertise into an artificial intelligence and machine learning system, which could then be applied on a bias-free, noise-free basis across the whole universe of stocks..
