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2006/01/24

>Reasoning and Mind

In a great book “Just One Thing” by John Mauldin, there is a brilliant piece by James Montier, “Psychology Matters” which contains two tables on how the mind reasons.

System One: Experientia (X-system/ Reflexive/Intuitive)

Holistic
Affective (what feels good)
Associative – judgments based on similarity and temporal contiguity
Rapid parallel processing
Concrete images
Slower to change
Crudely differentiated – broad generalization
Crudely integrated – context-specific processing
Experienced passively and preconsciously
Automatic and effortless
Self-evidently valid: “Experiencing is believing,” or perhaps wishing is believing

Neural Correlates of this System
Amygdala
Basal ganglia
Lateral temporal cortex

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System Two: Rational (C-system/ Reflective)

Analytic
Logical
Deductive
Slow, serial processing
Abstract images
Changes with speed of thought
More highly differentiated
More high integrated – cross-context processing
Experienced actively and consciously
Controlled and effortful
Requires justification via logic and evidence

Neural Correlates of this System
Anterior cingulated cortex
Prefrontal cortex
Medial temporal lobe

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Now why this post here?
I want you to figure why this post is here.

Note:
This post if copied from CIO. I post things I like to re-read many times and refer in future.
I think this is one of the imporant post made on this log.


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Also read > Previous Investment Articles
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2 Comments:

Blogger Raja Kumar said...

Left Brain right brain stuff.
There is also a more detailed system of analyzing types of brain activity and personalities.
Refer to:
http://www.personalitypathways.com/MBTI_intro.html
A couple of tests are available at the following links.
http://www.personalitypathways.com/type_inventory.html
http://www.humanmetrics.com/cgi-win/JTypes2.asp
Knowing your temperament can help you to identify potential blind spots in your psyche . It can actually be used to improve your trading style too !! Refer to:
http://www.geocities.com/rajak1981//images/astrologicaltrading.PNG
My biggest weaknesses for instance are 1) lack of planning and 2) jumping around between ideas. Hence I always keep a moving average overlay around to soothe my mind I also keep an optimized nifty trading system which keeps me on the right side of the market most of the time.
I won't tell you where to find my systems for that you will have to hunt yourself :D

Wednesday, January 25, 2006 1:10:00 AM  
Blogger Raja Kumar said...

I can't seem to choose any fonts here. Shouldn't the font size for comments be smaller than that used for the original post. Blogspot is weird!

Wednesday, January 25, 2006 1:12:00 AM  

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