Blink The Power of Thinking without Thinking

This book is about the ability of the human mind to make split second decisions. Our brain has a great ability to extract the most important information out of the overwhelming amount of noise we are surrounded with and make very accurate decision, even while under pressure. This phenomenon, sometimes called gut feeling, can give us an edge, but can also lead to biased decisions.

In Blink, the author describes many examples of research in this field of psychology, proving how powerful our brains really are. The book interested us because, as a futures trader, we sometimes find ourselfs in a situation where we instinctively know what to do, but do not act upon it. As a result of not believing what the creative part of my brain is “whispering” to the rational one we do not always act and react as we should. This lack of trust leads to hesitation and missed opportunities.

This is particularly true in trading when the amount of information we have to process simultaneously can be overwhelming. However, the human brain is able to focus on the most important details, filter out the garbage and execute trades accurately. Reading about experts who have developed a “feeling” for their opinions and decisions increased my awareness that I do have the ability to read markets unconsciously. Therefore, instead of fighting this “feeling” I should further explore and improve this skill. However, one has to remember that learning to trust our “feelings” takes experience and repeated effort. I think that day-traders are in an ideal situation to accelerate this learning process because they observe the markets day after day, for many hours at a time.