AI and 2nd Order Thinking – Your Path To Trading Greatness
Larry Connors' Trading Lesson of The Day | October 1, 2024
I’d like to share with you a link to a letter Howard Marks, one of the greatest investors of our lifetime, wrote in 2015.
The letter stems from a conversation he had with Warren Buffett’s business partner, the great Charlie Munger.
Charlie passed away ten months ago, just ahead of his 100th birthday.
He won’t be remembered as much for being a self-made billionaire as he will for the way he thought and also the way he taught others to think.
Profound is an understatement and you can find out more on this from the book Poor Charlie’s Almanack – I highly recommend reading it.
In Howard Marks’ letter, he stresses the importance of “Second Order Thinking”.
First-order thinking is easy.
Second-order thinking, as Marks writes, is “hard”.
If you want to be average at something, especially trading and investing, use first-order thinking.
If you want to be “great” at something, especially trading and investing, learn to use second order thinking. Few do because second order thinking is so hard.
The two are the difference between being average versus being great.
The Path To Becoming Great at Trading
This will be the only Trading Lesson of the Day this week because I’m traveling on business.
Next week though will be special.
Next week I’m publishing a series of lessons on how AI will lead you on the road to becoming a great trader.
Now that GPT o1-preview has logic built into it (very early stage), combined with its already immense capabilities to improve your trading on multiple fronts (from learning to analysis – it’s literally endless), AI has the ability to permanently change your life.
I’ll also integrate Howard Marks and Charlie Munger’s Second Order thought process into AI for you to gain an exponential learning effect. One that will change your trading ability forever.
Enjoy Howard Marks’ letter. It’s profound and deep. It doesn’t lead you to a full solution. 👉 AI absolutely will.
Next week will start the beginning of you exponentially growing your trading knowledge through AI.
Have a great week!
Larry
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