Note of PRINCIPLE (by Ray Dalio)(Part IV)

(First---  How big of an impediment is psychological pain to your progress?)

Second (It can give us courage, but most importantly, it will calm down

our mind)

People who confuse what they wish were true with what is really true create distorted pictures of reality that make it impossible for them to make the best choices. They typically do this because facing “harsh realities” can be very difficult. However, by not facing these harsh realities, they don’t find ways of properly dealing with them. And because their decisions are not based in reality, they can’t anticipate the consequences of their decisions.

So, remember… Ask yourself, “Is it true?”

Third ( a good cure of vanity, the false pride. The difference between the Be-good type and the Be-better type personality)

People who worry about looking good typically hide what they don’t know and hide their weaknesses, so they never learn how to properly deal with them and these weaknesses remain impediments in the future. These people typically try to prove that they have the answers, even when they really don’t. Why do they behave in this unproductive way? They typically believe the senseless but common view that great people are those who have the answers in their heads and don’t have weaknesses. Not only does this view not square with reality, but it also stands in the way of progress.

I am not saying that we all have the same potential, just that to get the most of your potential—whatever that is—you must learn and earn.

So, what are your biggest weaknesses? Think honestly about them because if you can identify them, you are on the first step toward accelerating your movement forward. So think about them, write them down, and look at them frequently.

How much do you worry about looking good relative to actually being good?

Fourth  (In my opinion,it’s not well-defined concept about the first-order and the subsequent-order consequences. What is the first order of a decision?)

People who overweigh the first-order consequences of their decisions and ignore the effects that the second- and subsequent-order consequences will have on their goals rarely reach their goals. This is because first-order consequences often have opposite desirabilities from second-order consequences, resulting in big mistakes in decision-making. For example, the first-order consequences of exercise (pain and time-sink) are commonly considered undesirable, while the second-order consequences (better health and more attractive appearance) are desirable. Similarly, food that tastes good is often bad for you and vice versa, etc. If your goal is to get physically fit and you don’t ignore the first- order consequences of exercise and good-tasting but unhealthy food and connect your decisions with their second- and third-order consequences, you will not reach your goal.

Quite often the first- order consequences are the temptations that cost us what we really want, and sometimes they are barriers that stand in our way of getting what we want. It’s almost as though the natural selection process sorts us by throwing us trick choices that have both types of consequences and penalizing the dummies who make their decisions just on the basis of the first-order consequences alone.

Fifth:


Blaming bad outcomes on anyone or anything other than one’s self is essentially wishing that reality is different than it is, which is silly. And it is subversive because it diverts one’s attention away from mustering up the personal strength and other qualities that are required to produce the best possible outcomes.

Blaming others is NOT the same thing as holding others accountable.

Successful people understand that bad things come at everyone and that it is their responsibility to make their lives what they want them to be by successfully dealing with whatever challenges they face. Successful people know that nature is testing them, and that it is not sympathetic.

Luck — both good and bad — is a reality. But it is not a reason for an excuse. In life, we have a large number of choices, and luck can play a dominant role in the outcomes of our choices. But if you have a large enough sample size—if you have large number of decisions (if you are playing a lot of poker hands, for example)—over time, luck will cancel out and skill will have a dominant role in determining outcomes.

If I had to pick just one quality that those who make the right choices have, it is character. Character is the ability to get one’s self to do the difficult things that produce the desired results. In other words, I believe that for the most part, achieving success—whatever that is for you—is mostly a matter of personal choice and that, initially, making the right choices can be difficult. However, because of the law of nature that pushing your boundaries will make you stronger, which will lead to improved results that will motivate you, the more you operate in your “stretch zone,” the more you adapt and the less character it takes to operate at the higher level of performance. So, if you don’t let up on yourself, i.e., if you operate with the same level of “pain,” you will naturally evolve at an accelerating pace. It is a game that I play, but this game is for real.

In summary, I don’t believe that limited abilities are an insurmountable barrier to achieving your goals, if you do the other things right.

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