In reading this chapter, I found the parallel between "miracle weight-loss" diets and "get-rich-quick" schemes to be interesting. Like the new diet, people disregard everything they know about the basic principles of economics (nutrition) and fall for the scams that don't work. This raises the question however, how does one get rich in the markets? The answer lies somewhere in the correct investment predictions. The analogy of the grocery store checkout line reiterated the fact that people see the same data (a lady with coupons, or a man hoarding two carts) yet the shortest line may not be the fastest moving, and the coupon lady may be walking out of the store before you because of a cash register malfunction. Predictions are essential.
Another way to look at this issue is through the experiment testing investment decisions made by those with damage to the area of the brain that controls emotion, and a control group. The ones with brain-damage finished with 13% more money because of their inability to shy away at fear and anxiety over investments. This test shows that in a market controlled by humans, anticipating human mistakes can prove to be beneficial.
Essentially, the trick to getting rich in the markets is to analyze and predict the mistakes that humans will make in the market, then plan accordingly to put one's investment's ahead.
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