What you'll learn:
- Learn tools to help make better investment and business decisions, break down complex topics and solve problems. Tools that you can apply to financial trading and investing.
- For example, by learning about certain psychological biases you will be better equipped to eliminate their negative effects and make better judgements in the markets.
- Concepts such as circle of competence, margin of safety and Mr. Market will help you to make better investment moves.
- The course is designed to teach you the most important mental models for business and finance. Short, concise videos. No fluff.
"It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent."
- Charlie Munger
Welcome to Mental Models For Wall Street.
On this course we are going to investigate a number of mental models andhow they can help you win in finance and business - particularly in the realmof trading and investing.
You are going todiscover crucialmodels and frameworkslike:
- The Availability Bias
- Confirmation Bias
- Misconceptions of Chance
- The Black Swan
- The Law of Small Numbers
- Cognitive Dissonance
- Margin of Safety
- Aversion to Losses
- Feedback Loops
- And lots more...
Financial traders, investors and entrepreneurs will benefit most from this course as we delve intotopics that will teach you about yourself, improve your judgement skillsand insulateyou from costly mistakes.
For example, by learning about psychological modelslike confirmation bias and hindsight biasyou will be better equipped to eliminate theirnegative effectsand make better decisions in the stock market.
By learning about cognitive dissonance, anchoringand fear of missing out you'll finally understand why you sometimes make strange, illogical decisions. And how this can help you in the trading world.
Concepts such as circle of competence, margin of safety and Mr. Market will further help you to make better timedinvestment moves while protecting your downside risk.
Also, you will learn to calculate better probabilities using Bayes Theorem, improve your systematic processes using feedback loops and minimise overconfidence by understanding concepts such asregression tothe mean.
You will learn all this and more – by utilising the power of mental models detailed on this course!
But, what is a mental model?
Well, a mental modelin it’s simplest form is an idea that helps us understand how the world works.
Having a large array of these models at our fingertips gives us great tools we can use to solve problems and navigate life.
Why do we need mental models?
The world is complicated so you can’t rely on just remembering facts, you need to have multiple models from all different disciplines in your head.
But even though there is so much to learn, there are shortcuts we can take.
By studying the big ideas from the big disciplines. Disciplines like psychology, economics, maths, physics and engineering we can go a long way in a short amount of time.
And that’s the whole concept behind Mental Models. They're shortcuts you can take to speed up your learning and become knowledgeable about the world.
The focus of this course
On this course, we will look at the most important mental models, the ones most crucial for success. And we will relate them to the business of financial trading and investing.
These models will help you to make better investment decisions, solve complex problems and avoid costly errors.
Let’s begin!
