Psychology Archives

Nassim Taleb: The Psychology of Loss Aversion

What is loss aversion? Do you think it’s rational to be loss-averse? In psychology, loss aversion is a cognitive bias whereby individuals would rather avoid losses than acquire gains. Most psychologists describe humans’ sense of loss aversion as irrational. They justify this with math—studies show that people are willing to overpay to insure against financial loss. However, according to Nassim Taleb, loss aversion is an adaptive phenomenon because it helps us survive. In this article, we’ll explore Taleb’s take on loss aversion.

How Negative Thought Patterns Hurt Your Mental Health

Do you often find yourself slipping into negative thought patterns, ruminating about the past, or imagining the worst-case scenarios in the future? Can negative thinking attract negative experiences? According to Joseph Murphy, the author of The Power of Your Subconscious Mind, if you’re not entirely happy with your life experiences, it’s because you’re thinking “false” negative thoughts that contradict the positive force of Universal Consciousness. These negative thought patterns leave an imprint on your subconscious mind which can further perpetuate the cycle of negativity. In this article, you’ll learn how your negative thoughts inhibit the positive flow of Universal Consciousness,

The 3.5% Rule: The Passionate Few Change the World

What is the 3.5% rule? Does it really take only 3.5% of the population to challenge the status quo? According to Nassim Taleb, the author of Skin in the Game, the state of the world is largely the result of small groups passionately fighting for what they want rather than a majority’s consensus. Indeed, history shows us that in order for your passionate few to succeed, you only need 3.5% of the population on your side. In this article, we’ll explore how the concept applies to politics, religion, language, and morality. We’ll conclude by explaining how you yourself can be

The Contrast Bias: Why We Misjudge Value

The 25 Cognitive Biases: The Contrast Bias

What is the contrast bias? How can you avoid the contrast effect when making comparisons? The contrast bias is the tendency to compare things to one another using relative factors instead of judging each object on its own merit. This is why an object will be viewed as worse than it usually would be when compared to something much better. You can manage this bias by judging each object on its own merit rather than in relative terms. Read on to learn more about the contrast bias.

Social Proof Bias: Why We Follow the Crowd

The 25 Cognitive Biases: Social Proof Bias

What is social proof bias? What is the harm in following the herd? Social proof bias is the tendency to have faith in the prevailing consensus and the belief that the majority always knows better. This tendency can be particularly dangerous during stressful situations where you may tend to make ill-thought-out decisions. Read on to learn more about the social proof bias.

Joseph Murphy: How to Train Your Subconscious Mind

Is it possible to influence your subconscious mind through conscious thought? What can you do to train your subconscious mind to think more positively? In his book The Power of Your Subconscious Mind, Joseph Murphy explains how to train your subconscious mind through conscious thought. The process to train your subconscious mind is very simple: You just need to use your conscious mind to imprint positive thoughts and images upon your subconscious mind. Murphy explains that there are two steps to making this process work for you: First, you need to decide to think positive thoughts. Then, you need to

Creative Challenges Are a Part of the Creative Process

What are some of the most common obstacles you encounter when creating? How do you deal with these challenges? No matter what creative pursuit you take on, there will always be attending annoyances. Developing an ability to cope with irritants and unpleasantness is as much a part of your job as a creator as actually creating. In this article, we’ll discuss how to handle the inevitable creative challenges you’ll encounter on your creative journey.

The Instinctive Reaction Tendency—Explained

The 25 Cognitive Biases: Instinctive Reaction Tendency

What is the instinctive reaction tendency? How do you keep calm in stressful situations? The instinctive reaction tendency is the inclination to react without thinking during stressful situations leading to ill-informed decision making. You can control the tendency by keeping calm during stressful situations and recognizing that you still have some time to think methodically before making a decision. Read on to learn more about the instinctive reaction tendency.

Loss Aversion Bias: Explained With Examples

The 25 Cognitive Biases: Loss Aversion Bias

What is loss aversion bias? How do you avoid triggering the tendency? The loss aversion bias is the tendency to prefer avoiding losses to acquiring new gains. This bias is triggered by the pain of losing something valuable in the past. You can manage the tendency by calibrating all your losses in true absolute terms, rather than relative terms. Read on to learn more about the loss aversion bias.

How to Reframe Your Thoughts for More Positivity

How to Develop a Positive Sales Attitude

Do you often find yourself stuck in negative thinking patterns? What can you do to train your mind to think more positively? According to Joseph Murphy, the author of The Power of Your Subconscious Mind, negative, self-sabotaging thoughts can block the flow of Universal Consciousness into your life. When this flow is blocked, you are more likely to attract negative experiences into your life. In this article, we’ll explore specific methods you can use to reframe your thoughts for more positivity.