Alphabrain - How a Group of Iconoclasts Are Using Cognitive Science to Advance

Smarter decision-making based on cognitive science
 
AlphaBrain is the investor's guide to achieving more, doing better, and reaching higher. At its core, the magnitude of your success is based on the quality of your decisions. The problem is that human beings are poor decision-makers; we tend to approach problems after they arise instead of planning for them in advance. We put too much weight on instinct, belief, and "gut feeling." We make the same mistakes over and over again--so reliably, in fact, that cognitive science can accurately predict exactly which mistakes we'll make and when. This book offers a way to understand and plan for the human mind's usual tendencies to help you make smarter investment decisions. Using a framework based on cognitive research, you'll learn how to approach decisions objectively, systematically, and constantly review your process; you'll take action based on evidence instead of intuition, and get ahead of potential problems before they get the best of you.
 
With so much riding on the correctness of your choices, natural tendency can be a dangerous thing. This book shows you how to remove the bias and emotion to start making choices backed by hard evidence and objective data and lower your stress.
* Shift your processes from reactive to proactive
* Base decisions on reality over belief
* Eliminate cognitive bias and reduce common mistakes
* Make better decisions with a systematic, objective approach
 
Why do we begin managing risk only once it becomes apparent? Why do we react to the market instead of making the big decisions before emotion takes over? Investing has always been a largely reactive field, but those who dominate it approach decision-making less like a human and more like a machine. AlphaBrain shows you how to get real about investing, with cognitive techniques that lead to smarter, evidence-based decisions.

List of contents

Preface ix
 
Acknowledgments xv
 
About the Author xvii
 
Part I Decision Analysis 1
 
Chapter 1:Marginal Improvement, Significant Impact 3
 
Chapter 2:Blinded by Bias 21
 
Chapter 3:Rational Decisions 33
 
Chapter 4:Decision Analysis 49
 
Chapter 5:How to Solve Any Problem 63
 
Chapter 6:Cerebral Junk Food 85
 
Chapter 7:The Input Paradox 101
 
Chapter 8:Auditing Mental Accounting 111
 
Part II Decisions In The Financial Context 123
 
Chapter 9:Mistakes at the Heart of Investment Management 125
 
Chapter 10:Manager Selection 135
 
Chapter 11:Prophecy of Value 149
 
Chapter 12:Mind over Matter 161
 
Chapter 13:Coaching 181
 
Chapter 14:Trading Decisions 191
 
Chapter 15:How to Stop Losing Money 221
 
Chapter 16:The Danger of Shortcuts 241
 
Chapter 17:The Power of the Unexpected 255
 
Index 275

About the author

STEPHEN DUNEIER is CEO of Bija Advisors. Through coaching, workshops and publishing, Bija Advisors uses cognitive science to help the world's most successful institutional investors and business leaders make better decisions and achieve better results.

Summary

Smarter decision-making based on cognitive science

AlphaBrain is the investor's guide to achieving more, doing better, and reaching higher. At its core, the magnitude of your success is based on the quality of your decisions. The problem is that human beings are poor decision-makers; we tend to approach problems after they arise instead of planning for them in advance. We put too much weight on instinct, belief, and "gut feeling." We make the same mistakes over and over again--so reliably, in fact, that cognitive science can accurately predict exactly which mistakes we'll make and when. This book offers a way to understand and plan for the human mind's usual tendencies to help you make smarter investment decisions. Using a framework based on cognitive research, you'll learn how to approach decisions objectively, systematically, and constantly review your process; you'll take action based on evidence instead of intuition, and get ahead of potential problems before they get the best of you.

With so much riding on the correctness of your choices, natural tendency can be a dangerous thing. This book shows you how to remove the bias and emotion to start making choices backed by hard evidence and objective data and lower your stress.
* Shift your processes from reactive to proactive
* Base decisions on reality over belief
* Eliminate cognitive bias and reduce common mistakes
* Make better decisions with a systematic, objective approach

Why do we begin managing risk only once it becomes apparent? Why do we react to the market instead of making the big decisions before emotion takes over? Investing has always been a largely reactive field, but those who dominate it approach decision-making less like a human and more like a machine. AlphaBrain shows you how to get real about investing, with cognitive techniques that lead to smarter, evidence-based decisions.

Product details

• Authors: Stephen Duneier
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 31.01.2019
• EAN: 9781119335566
• ISBN: 978-1-119-33556-6
• No. of pages: 304
• Subjects: Guides > Law, job, finance; Social sciences, law, business > Business > Management; Management, Business & management, Generation Alpha, Wirtschaft u. Management, Spezialthemen Wirtschaft u. Management, Business & Management Special Topics