There are a host of different factors which lead to great trading and investing performance, but at the end of the day, we live and die by the quality of the decisions, we make. It is ‘Where the Money Is!’.
Our ability to make good quality decisions in financial markets is heavily compromised by our inability to be truly objective in the face of the extreme complexity, uncertainty and randomness. What we think is the best decision in the moment, doesn’t necessarily yield the best outcome.
The world of Poker provides some great examples of how to make decisions in situations characterised by complexity, uncertainty and randomness. Our guest this week, Annie Duke, is a former professional poker player and world champion. Annie authored the brilliant ‘Thinking in Bets: Making Smarter Decisions When You Don’t Have All the Facts’, and has a new book out called ‘How to Decide: Simple Tools for Making Better Choices’.
Annie believes that we can all become better at making good decisions, and that this ability can increase our odds of success in the financial markets. In this interview we explore these themes with Annie, some of the topics touched upon include:
• Identifying and dismantling our hidden biases.
• Extract the highest quality feedback from the markets.
• Accurately identifying the influence of luck in the outcome of your decisions.
• When to decide fast, when to decide slow, and when to decide in advance.
• How to make decisions that more effectively help you to realize your goals and improve your performance.
• How to better manage your emotions and reduce their undue influence in your decision-making process.
We are pretty sure you will find Annie’s reflections extremely valuable. You can find out more about Annie at https://www.annieduke.com/