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Decision making 
In the stock market and in life, we spend a lot of time and energy choosing between equally appealing alternatives.
If you’re paralyzed by choice, here are 5 methods to help you make hard decisions:
In the stock market and in life, we spend a lot of time and energy choosing between equally appealing alternatives.
If you’re paralyzed by choice, here are 5 methods to help you make hard decisions:
1. PRETEND YOU’RE ADVISING A FRIEND.
We make better decisions when we advise other people, according to a paper published in Psychological Science.
The disparity disappears when you consider your own problem from someone else’s perspective.
We make better decisions when we advise other people, according to a paper published in Psychological Science.
The disparity disappears when you consider your own problem from someone else’s perspective.
We’re also MORE CAUTIOUS when we make decisions on our own behalf, according to a paper published in Organization Behavior and Human Decision Processes.
2. CHECK YOUR GUT.
Gut feelings are shaped by your past experiences and the knowledge you gained from them.
2. CHECK YOUR GUT.
Gut feelings are shaped by your past experiences and the knowledge you gained from them.
When we make decisions based on gut feelings, we’re more likely to stick to them, according to research by the American Psychological Association.
2 methods to get in touch with your gut:
- Imagine your future self. You’re sitting in a rocking chair looking back on your life. How do you want to imaging you handled this situation?
-You’re trying to decide whether to stay at your job or quit to start your own business.
- Imagine your future self. You’re sitting in a rocking chair looking back on your life. How do you want to imaging you handled this situation?
-You’re trying to decide whether to stay at your job or quit to start your own business.
Someone hands you an envelope and your answer’s inside. It says “stay.”
If you’re disappointed, then your gut wants to go.
Credit to @waitbutwhy for this one. If you don’t know him, read his blog ASAP!
If you’re disappointed, then your gut wants to go.
Credit to @waitbutwhy for this one. If you don’t know him, read his blog ASAP!
3. SET A TIMER.
Scarcity is a powerful motivator. That’s why limited time offers are used to sell every product and service.
It clarifies what’s most important and drives action. Take advantage of this psychological trait by giving yourself a limited amount of time to decide.
Scarcity is a powerful motivator. That’s why limited time offers are used to sell every product and service.
It clarifies what’s most important and drives action. Take advantage of this psychological trait by giving yourself a limited amount of time to decide.
4. GET THE FACTS.
Intuition functions best when you have to make quick decisions in areas where you’re already proficient, according to Kelly O’dell, author of The Human Way: 10 Commandments for (Im)Perfect Leaders.
Intuition functions best when you have to make quick decisions in areas where you’re already proficient, according to Kelly O’dell, author of The Human Way: 10 Commandments for (Im)Perfect Leaders.
Intuition doesn’t do well when you have to make complicated decisions outside your area of expertise.
If you’re new to trading or investing, gather as much information as possible.
If you’re new to trading or investing, gather as much information as possible.
5. SET PARAMETERS.
There are two kinds of decision makers, according to Barry Schwartz, author of The Paradox of Choice.
Some people go to great lengths to make the best possible choice. Objectively, these people make the best decisions.
There are two kinds of decision makers, according to Barry Schwartz, author of The Paradox of Choice.
Some people go to great lengths to make the best possible choice. Objectively, these people make the best decisions.
But they are less satisfied with their choices and second-guess themselves.
The second kind of decision maker takes action once their criteria is met.
Their standards may be similarly high, but they take action as soon as they find what they’re looking for.
The second kind of decision maker takes action once their criteria is met.
Their standards may be similarly high, but they take action as soon as they find what they’re looking for.
These people are happier with their decisions and happier overall.
Instead of agonizing over every decision, figure out what’s most important to you. When you find it, take action.
How do you make difficult decisions? Let me know in the comments!
Instead of agonizing over every decision, figure out what’s most important to you. When you find it, take action.
How do you make difficult decisions? Let me know in the comments!
@Matt_Cochrane7 You might like this thread.
