Hello book friends, welcome to continue to be a guest in the reading circle of little scholars, today we will continue to talk about this book, the law of entropy increase. Yesterday we talked about the fact that loss aversion is human nature, and we can effectively motivate ourselves by using loss aversion, such as the author, whose plan is always laid out in advance, and then widely publicized so that the whole world knows. He is a firm believer that "haste is not enough", so he will brag generously about his plans and let everyone know his determination, which will stimulate his inner motivation to move forward. If he succeeds, he will be glorified;If he fails, he would rather lose face than bear the shame.
I remember one time when the author boasted to his colleagues that he did not smoke, promising to quit. So, he openly exerted pressure to give anyone a reward of $100 if they saw him smoking. Two months later, he actually quit smoking, which not only made him proud, but also proved the effectiveness of this braggart strategy. This strategy motivates people to stick with it and avoid giving up because of stress.
The same is true of the author's **. We want everyone to hold for the long term, so we have a three-year holding period. Even if you need funds urgently, you can withdraw your investment, but you will need to pay a 5% processing fee. This fee does not belong to us, but is used for ** assets, and all holders will receive this proceeds. This strategy takes advantage of people's loss aversion and pushes them to hold for the long term, resulting in higher returns.
On the question of fast and slow thinking, we mentioned that thinking too fast is an instinctive human reaction, but it is not rational enough, it is also easily influenced by emotions, and often requires more time and energy to make decisions. Slow thinking, on the other hand, is a more rational way that requires us to think deeply and analyze, may require more time and energy, but can help us make better decisions. Like a snail, although it walks slowly, it will eventually reach the end, more stable and reliable than those beasts of prey that are desperate for only speed. Imagine if an object falls from the sky, you can't accurately estimate its weight, and you can't tell if it will hurt you, so you can only instinctively dodge it. Even if it's a small paper airplane, you'll react naturally. And this reaction is our "slow thinking". It is a way of thinking that goes deep into the heart, and requires us to use Xi, calculation, logic and other methods to draw accurate conclusions. It corresponds to the "quick thinking" we make in a moment, which is a knee-jerk reaction.
For example, when the market is in the market, our instinctive reaction is to sell immediately, fearing the risk of losing more. However, if we do a well-thought-out analysis, we will see that this is a good opportunity to take advantage of the dips**. Conversely, when the market continues, our instinctive reaction may be to buy blindly**, but then there are already a lot of people in the market buying, will we still have a chance to sell?
* is a typical cyclical product, and we should use performance as the basis for selling and not being swayed by market sentiment. Only when the performance is low**, and when the performance is at the peak, it is sold. This means that we need to keep learning Xi and constantly improve our slow thinking skills in order to succeed in the investment market.
Therefore, we need to recognise that the key to the success of investing is whether you can harness the power of slow thinking. Most people may not use the slow thinking system regularly, which has led to the deterioration of this thinking ability. However, each of us can rejuvenate our slow thinking ability through continuous learning and Xi and Xi practice, so as to better grasp investment opportunities and realize wealth appreciation. One of the author's experiences made him feel that nowadays, more than half of the people no longer have the ability to think deeply. Even if you tell them the results, they don't want to believe it anymore. Such people really can't guide them out of the framework of quick thinking. However, in our work, we can use a variety of incentives that can not only provide rewards, but also trigger people's loss aversion, so as to effectively increase their motivation to work.
Taking online car-hailing drivers as an example, we can pop up prompts, such as "How much money do you have left to complete a 500 yuan order", "Do you really want to go offline now?".You can consider taking the next order and only need to complete this whole number more. In this way, the driver will have a kind of pressure like losing himself if he does not complete the task, which will make them can't help but choose to take another order and finally achieve the task of 500 yuan. Some software even keeps track of drivers' average workload and alerts them when they don't work up to par, giving them a sense of urgency that if they don't get the job done, they'll lose out on revenue. It's a practical way to spark people's intrinsic motivation and make them more productive. The concept of "loss aversion" has been widely used in many industries. For example, some education and training institutions use a trial course of 99 yuan, and only need to complete a certain number of hours within the specified time to get a refund of the entire tuition fee. In this way, many children consciously and diligently complete the course, and parents have a positive view of the effectiveness of the course, and are willing to pay more, even in the thousands or tens of thousands.
Therefore, we can see that "loss aversion" is a psychological strategy that encourages people to take positive action. Merchants will also cleverly use this strategy, such as full discount free shipping, by creating the complexity of the promotion, so as to trigger consumers' desire to buy and increase sales.
However, investors should be wary of this issue, as high expectations often lead to poor decision-making. Although it is not completely unpotential, it is not easy to invest in a large number of people, and investors need to have the ability to analyze and make accurate judgments. Therefore, it is necessary to conduct a thorough analysis and research before investing, and do not let the psychology of "loss aversion" affect our decision-making. More than 10 years ago, Moutai, Yili, Gree, and Midea were among the top companies with a 10-fold increase in 10 years, however, why do such well-known companies still make people lose money?The reason lies in volatility, no matter how good a company is, it is inevitable that there will be times. For example, Moutai fell by half in 2012, which many people dare not imagine. As a result, this ups and downs of volatility has triggered people's disgust, and once the stock price recovers, many people will sell in a hurry, thus missing the opportunity to make money, and when the stock price soars again, they want to recover it as soon as possible. The herd effect is also part of human nature, whether it is conformity or loss aversion, it is to minimize the burden on our thinking. In daily life, most of the time we should join the group, for example, if we don't know which restaurant is delicious, we can basically make the right decision by referring to the good reviews on Dianping. For example, when 100 people say that the egg is square, the subject may be overwhelmed for a moment, and even if he knows that the egg is actually round, he or she will choose to remain silent. I began to ponder and wonder if there really was a special kind of egg, and I didn't know anything about it.
Next, let's take a look at the three elements of action, the essence of action is motivation x ability x triggering. No action is without warning, and there must be some kind of motive behind it. For example, if someone wants to be healthy, it must be to improve their health, or they have been ridiculed by others and their self-confidence has been weakened. This is where what we called the loss aversion theory comes into play.
However, motivation alone is not enough to achieve action, but also the ability to do so. Imagine that you aspire to become a basketball superstar, like Yao Ming, but it's an almost impossible task, and running 10 kilometers a day may not be enough. It is only within a circle of competence that action can be sustained.
Finally, the trigger of action is the key to motivating your action. For example, Liu Genghong's fitness on the short ** has become popular, and many people have imitated it, which may be motivated by curiosity, fun, or expecting to gain more fans. And their ability may be a few simple movements to practice Xi repeatedly, but they can successfully trigger a national fitness boom, which is the power of triggering power.
For the author, he also has the desire to exercise, but the work pressure is high, and it is always difficult to put it into action. Therefore, in order to achieve the goal, it is necessary to find the right trigger force to stimulate the inner action. Herd behavior, motivation, competence, and triggering are key elements in achieving self-management. However, only the trigger is the decisive factor. For example, if you want to maintain good physical health, you may have the motivation and ample ability to exercise, but will you be able to stick with it?Joining a fitness organization is a great option, and there will be a group of people to accompany you to your workout every day. The same applies to the basketball team, where if you're taking a week off, you're going to have a lot of people urging you to come and get involved. So, in the end, you can't refuse, you can only adjust your state.
The more difficult things are, the more difficult things to adhere to, the more you need to use the herd effect to force yourself to persevere.
For example, during the Vietnam War, 100,000 U.S. soldiers became addicted to drugs, a problem that once caused anxiety. Although many people thought that less than 5,000 people would be able to return to normal life after education, it is shocking that these soldiers have succeeded in recovering from drug addiction, reaching a staggering 95%. That's the power of the herd effect.
Of course, the herd effect alone does not guarantee success. However, when we find ourselves struggling, we may want to use this power to join some organizations and ask others for help. After all, it is difficult to sustain yourself alone in the face of difficulties. In the military, we've also experienced collective triggering scenarios, and everyone did it, so I followed suit. Especially in a difficult environment, drugs have become a good medicine for us to anesthetize our nerves. But when we return to society, we are scattered in different corners, and the triggers that motivate us to behave change and the people around us stop doing it, so we gradually quit drug addiction.
This reminds us of a sentence, knowledge can't change a person, but the environment can, if a person wants to continue to improve in a certain field, keep learning Xi, you must integrate into a continuous learning Xi, constantly triggering the environment, the people around you are very motivated, you must also improve, if the people around you are more mixed than one another, then you will sooner or later fall into the abyss. So no matter how poor you are, you have to be poor to the rich pile, this sentence is valuable. What kind of person you want to become, you have to find such a group of people as much as possible, and then mix in them. If you want to be really **, go to the gym to make friends, and if you want to study, go to the university library more. In the same way, if you want to invest and make money, try to discuss with leeks as little as possible**. Listen to professional opinions and rational analysis. There is a reading group very good, every day everyone has to share a one-minute voice reading insight, if anyone wants not to share, automatically send a 100 yuan red envelope. This forces everyone to improve every day.
In the next issue, we will continue to talk about the fact that in sports competitions, there is often a saying called home advantage, which mainly comes from the natural advantage formed by the players who are familiar with the competition environment and venues. So tomorrow we will talk about how to create this psychological advantage in sports competitions.