How to Improve Your Capacity For Critical Thinking

General PrinciplesTips & Techniques

Loanstreet Monthly Level Up June 2014Speaker: Jared Lim

The General Principle

Tips & Techniques

1. Practice (Having informed opinions)

• Like a muscle

• OK to be easy-going / reserve opinion

• But not OK to be mentally lazy

No opinion? Just ask questions until you get there.

2. Don’t be so sure of your positions

• Unless already been examined for basis

• Examine all reasons for taking a position

• Resist indoctrination

3. Consider all angles

• Include ideas / opinions / facts / beliefs contrary to your own

• Avoid personal biases if possible

4. Know the Knowns, Unknowns and Unknowables

• In examining basis, classify them:

• On belief / instinct / unknowable:– Plausible vs Implausible– Apply Occam’s Razor

KnownFact. Irrefutable

UnknownYet to be known, but can find out

UnknowableBelief, instinct or matter of opinion

Among competing hypotheses, the one with the fewest assumptions should be selected.

Other, more complicated solutions may ultimately prove correct, but—in the absence of certainty—the fewer assumptions that are made, the better.

5. Test those positions for consistency

• Correspondence AND Coherence

• Only true logical test of the Unknowable

CorrespondenceHow consistent is it with

your observations of how it relates to the world?

CoherenceHow consistent is it in how it

relates with other claims / beliefs / statements?

All positions / claims should harmonize with each other

6. Take those positions to its logical extreme & consequences arising

• Helps moderate your positions

• Or choose to bite the bullet

Likely Result

Changed Position

Better Formed

Opinions

Smarter Better You

More Complete Thinking

Example Application Scenarios

1. Hot stock tips2. MLM / Pyramid schemes3. Fanboy syndrome4. Beliefs / culture / tradition / superstitions5. Anyone’s opinion / belief

Thought Exercise

• What are some positions you hold? Are they well-informed? Or is it from indoctrination?

• Have you challenged yourself on those positions?

Thank You

Loanstreet Monthly Level Up June 2014