Learning by Example

This is one of the most common ways we learn and grasp new ideas and concepts. Right from an early age we are taught by examples. Our brains are good at making an analogy and generalizing among the examples we see. However, in the real world this can backfire. Looking at history gives only an inkling in that respect as to what the outcome of a future situation might be. Learning by example is inherently flawed for random systems as we are only exposed to a limited number of samples. It is common to reach to conclusions immediately based on what we know. But depending on the system or entity that you thinking about, it might be good to revisit the conclusion. When it comes to mathematical equations or the laws of physics, analogy usually works. The underlying systems are stochastic and predictable. But if you are dealing with the stock market or a relationship. Especially, in the topic of humans. Humans are messy. It is rare to see situations and circumstances repeat itself. It is even rarer to see people reacting to it the same way as last time. Think again, might help.

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