Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets

Study and Application Tips

• Make decisions by considering the probability of random events and their potential impact, rather than just the expected outcome.
• Develop strategies that are resilient to unpredictable changes and can benefit from unexpected events.
• Assess risks not only based on past experiences but also by considering unforeseen future scenarios.
• Learn to distinguish between random and non-random events in business and life to better understand their nature and potential impact.
• Practice skepticism towards forecasts and analytical models, recognizing their limitations in predicting random events.
• Build personal and professional plans in a way that they can withstand unforeseen circumstances and events.
• Develop psychological resilience to failures and surprises, viewing them as opportunities for learning and growth.