1. What the book says

1.1 Know the right way to make decisions

• ** Six steps to Rational Decision making (for important things) **
  • Determine the problem
  • Determine what is important and what is less important
  • Evaluate whether the important and the unimportant have been met
  • Plan B
  • Evaluate each alternative
  • Choose the one with the highest score
• ** Biases and errors in rational decision making **
  • Not planning ahead
  • Too confident
  • Too much reliance on past experience
  • Poor ability to learn lessons
• In many cases, multiple choices can approach the optimal result

1.2 Personality traits and decision preference

• Risk and don’t risk
• Perfectionists and Mr. Almost: Perfectionists are more likely to feel sadness and regret about decisions they’ve made, because no matter what decision they make, they wonder if another decision could have been better
• Internal control and external control, and internal control believe that the decisions they make will have a good impact on themselves, but they tend to ignore the influence of some random factors
• Procrastinating gives you more time to think about it, but it can also lead to lost opportunities and awkward situations
• Impulsive or not impulsive, impulsive can make bad decisions, but impulsive people can make lots of small decisions quickly and reduce stress

1.3 Overcome the mistakes most people make when making decisions

• Overconfidence: We tend to be overconfident when making decisions that are outside our area of expertise. The way to overcome this is to immediately find a counterintuitive position
• Procrastinating: Don’t get too hung up on making decisions about trifles, and try to impose deadlines on yourself for important decisions
• Carpe diem: Set a long-term goal and check it over time. Think of the future
• Cognitive bias: Many of us have bias-based perceptions, in which we selectively perceive and interpret events and call this interpretation reality. Use empathy to break the game
• Confirmation bias: We seek out information that we ourselves want to hear and that we already believe to be true. Example: Baidu search oneself caught a cold
• Framing: Make sure your framing is normal and challenge your framing by proving it false
• The accessibility bias is similar to the survivor theory. Principle still depends on own memory, and own knowledge pool
• Familiarity biasBuffett only invests in traditional industries and misses out on Google and Facebook. If you want to invest yourself
  • Let’s not put all our eggs in one basket and diversify our investment risk
  • We should not be afraid to try new investment directions that seem distant or unfamiliar (value investing, take some time to observe before you start).
  • Constantly review your portfolio of plays, identify shortfalls, and diversify them to meet them
• Sunk costs, stop losses: Decisions made today only affect the future, not the past, so don’t focus on past losses and costs when making decisions
• Adaptive deviationThe happiness and frustration you get from winning or losing is only temporary
  • Know that the novelty wears off, so avoid it
  • Keep trying new and temporary pleasures
  • Take time to enjoy the enjoyable activities and speed up the unpleasant ones
  • Interrupting a pleasant experience makes you happier – Peak effect?

1.4 General opinions for decision-making, which I understand to be routine?

• Plan before you make decisions: If you don’t know where you want to end up, every road is a dead end
• Choosing not to Make decisions: Might it be best to do nothing during times of high emotions, crisis, lack of information, or stress
• Since all decisions are linked, make sure your short term goals are aligned with your long term goals
• Life is long, but there are only a few key decisions that don’t involve buying gadgets, so don’t waste too much time on them
• You can’t have all the information you need to make a decision, so don’t waste time before you make a decision
• Limit the number of choices you can make to reduce complexity and increase happiness. Choose 4-6
• Regret a decision you made:
  • Decisions that work quickly are more likely to be regretted
  • Decisions that are harder to make are easier to regret
  • The more irreversible a decision is, the more likely it is to regret it
  • Ps: Not every decision is worth following up
  • Ps: Regret doesn’t help, but if you make a bad decision you can go back and avoid the next step
  • Ps: Spend more time on irreversible decisions
• Try something newTake risks and make new decisions
  • Prepare ahead of time, take the time to learn, not really rush
• Anyone can fail, depending on how you look at it, failure is a failure or an opportunity to learn.
• If I’m a perfectionist, I need to be especially vigilant about procrastinating
• Decisions can be rational, but they can also be influenced by culture

1.5 What should I learn from this book?

• Decision-making ability can be improved
• It all starts with goals, and make sure your short term goals are aligned with your long term goals
• Rational processes need to be used whenever possible
• There are costs to not making decisions ——— procrastination ！！！！！
• Understand your personality and then use it to improve your decision-making skills
• Look for ideas that contradict my beliefs and avoid overconfidence
• Put yourself in other people’s shoes and avoid subjective influences on rational decisions
• Don’t assign any meaning to random events, most of them revert to the mean
• It’s okay to make mistakes, just go for it, go for it

2. Your own summary routine

2.1 Before making a decision

• Spend more time on important and irreversible decisions
• As we seek to increase returns, we tend to be risk averse. They tend to take more risks when trying to recover their losses

2.2 When making decisions

• Make your life decisions in five seconds, because it doesn’t make much difference
• We should not be afraid of failure, but rationally analyze the reasons for failure

2.3 After making a decision

• Not all decisions need to be reviewed, because no one can make all choices in the best possible way

2.4 general

• People with perfectionism are often more likely to procrastinate because they fear failure, making mistakes, and losing control more than others