My guest today is Gerd Gigerenzer, the director of the Max Planck Institute for Human Development in Berlin, and a former professor of psychology at the University at Chicago. Gerd is also the director of the Harding Center for Risk Literacy (read David Harding the head of trend following firm Winton Capital).

The topic is heuristics.

In this episode of Trend Following Radio we discuss:

Uncertainty
Comparing decisions to baseball (gaze heuristic)
Complex problems and simple solutions
Using price action as a decision making cue
Unconscious heuristics
The art of knowing what one doesn't have to know
The less is more effect
The miracle on the Hudson River a few years ago as a case in point illustrating heuristics
The idea of an adaptive toolbox
The element of surprise in Gigerenzer's work
The distinction between risk and uncertainty
Intuition vs. rationality

Jump in!

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I'm MICHAEL COVEL, the host of TREND FOLLOWING RADIO, and I'm proud to have delivered 10+ million podcast listens since 2012. Investments, economics, psychology, politics, decision-making, human behavior, entrepreneurship and trend following are all passionately explored and debated on my show.

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96: It's Still a Passing League