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What Psychological Tricks and Hacks are Useful to Know?

Psychological Tricks
Written by Andy Richardson

If you understand psychology, you can control any room you walk into.

To make psychology easier, use mental models.

Parkinson’s Law:

Work tends to take as much time as you give it. If you have too much time, you’ll waste it. Set shorter deadlines to stay focused and get more done.

Occam’s Razor Paradox

The simplest explanation is usually the correct one. If something feels overly complicated, it’s probably easier to understand than you think. Try to simplify instead of overcomplicating.

The Bragging Paradox

People who brag a lot are often less skilled or confident than they seem. True confidence is quiet, while insecurity is loud. When someone boasts, take what they say with a grain of salt.

The Dunning-Kruger Effect

The less someone knows, the more confident they might feel. Truly knowledgeable people realize how much they still have to learn. Ignorance breeds confidence and knowledge breeds humility. Some people spend their whole lives thinking they’re geniuses.

The Map Is Not the Territory

A map is a helpful guide, but it’s not the real world. Similarly, our ideas and models are just tools, not reality itself. Always remember the difference.

The Medici Effect

Creativity thrives when different ideas and perspectives mix. That’s why diverse places, like big cities, often spark the most innovation.

Gall’s Law

Big, complex systems that work started as small, simple ones that worked first. Don’t try to build something huge all at once—start small and improve it over time.

Second Order Thinking

Many people only think about the immediate results of their actions. But every action has ripple effects. Look ahead and think about what those effects might lead to.

The Zebra Effect

Most people prefer to fit in and not stand out—just like zebras blending into their herd. Standing out can bring rewards, but it also comes with risks. It’s human nature to want to belong.

About the author

Andy Richardson

Andy began his trading journey over 24 years ago while in graduate school, sparked by a Christmas gift of investing money and a book. From his first stock purchase to exploring advanced instruments like spread betting and CFDs, he has always sought to expand his understanding of the markets. After facing challenges with day trading and high-pressure strategies, Andy discovered that his strengths lie in swing and position trading. By focusing on longer-term market movements, he found a sustainable and disciplined approach. Through his website, Andy shares his experiences and insights, guiding others in navigating the complexities of spread betting, CFDs, and trading with a balanced mindset.

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