I think one of the major results of the psychology of decision making is that people's attitudes and feelings about losses and gains are really not symmetric. So we really feel more pain when we lose $10,000 than we feel pleasure when we get $10,000.
Interpretation
People experience loss more intensely than gain, reflecting an asymmetry in human emotions.
This quote by Daniel Kahneman emphasizes the concept of loss aversion in psychology, which suggests that the negative emotional response to losing money or resources is greater than the positive emotional response to gaining an equivalent amount. As a result, individuals are often more affected by losses, which influences their decision-making and risk assessment, leading to a psychological bias where avoiding loss becomes more significant than acquiring gains.
In practice
In a financial workshop discussing investment strategies, one might say, 'As Kahneman noted, we feel more pain when we lose money than joy when we gain it, so be prudent in your choices.'
We think, each of us, that we're much more rational than we are. And we think that we make our decisions because we have good reasons to make them. Even when it's the other way around. We believe in the reasons, because we've already made the decision.
The average investor's return is significantly lower than market indices due primarily to market timing.
Banks are run by executives, and executives protect themselves, and that does not always mean that banks are going to behave rationally.
Laziness is built deep into our nature.
Through some combination of culture and biology, our minds are intuitively receptive to religion.
You are more likely to learn something by finding surprises in your own behavior than by hearing surprising facts about people in general.
Wherever an inferiority complex exists, there is a good reason for it.
I think a lot of creative people are uncomfortable with therapy. Because you're basically trying to 'solve' the unconscious. And the unconscious is where it all comes from.
Behavioral scientists distinguish between fast thinking and slow thinking. Fast thinking is represented in the mind's System 1: it is automatic, intuitive, and often emotional. Slow thinking, reflected in System 2, is deliberative and reflective; it likes statistics. It's hard to think of a purer System 1 candidate than Trump.
It used to be that whenever I introduced myself to people and told them I was a psychologist, they would shrink away from me. Because, quite rightly, the impression the American public has of psychologists is, 'You want to know what's wrong with me.'
Interpretations, criticisms, diagnoses, and judgments of others are actually alienated expressions of our unmet needs.
The dirty little secret of both clinical psychology and biological psychiatry is that they have completely given up on the notion of cure.
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