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

A. There are an infinite number of laws of the universe and that all progress or dreams achieved come from operating in a way that’s consistent with them. These laws and the principles of how to operate in harmony with them have always existed. We were given these laws by nature. Man didn’t and can’t make them up. He can only hope to understand them and use them to get what he wants. The same is true for economic, political, and social systems that work.

Understanding what is good is obtained by looking at the way the world works and figuring out how to operate in harmony with it to help it (and yourself) evolve. But it is not obvious, and it is sometimes difficult to accept.

So,the most challenging part of progress is beyond the beaten trap of morality and personal emotion & feeling. With the passing of time, I come to understand that how much a man can cover the life journey depends largely on the degree he can get out of the control of his stereotype and emotion. Get to Psychological books and learn more about the inner function of ourselves.

B. Evolution, which is the natural movement toward better adaptation, is the greatest single force in the universe, and that it is good. It affects the changes of everything from all species to the entire solar system. In fact, it appears to me that everything other than evolution eventually disintegrates and that we all are, and everything else is, vehicles for evolution.

I also believe that all things in nature have innate attributes that are both good and bad, with their goodness and their badness depending on what they are used for. For example, the thorns on a rose bush, the stinger on a bee, the aggressiveness of a lion, the timidity of a gazelle are all both good and bad, depending on their applications. Over time, nature evolves toward the right balance through the process of natural selection—e.g., an overly aggressive animal will die prematurely, as will an overly timid animal.

Every coin has two sides, and never go to extreme. It’s also consistent with Chinese philosophy ---ZHONGYONG LAW by Laozi and Confucius.

Typically defensive, emotional reactions—i.e., ego barriers—stand in the way of this progress. These reactions take place in the part of the brain called the amygdala. As a result of them, most people don’t like reflecting on their weaknesses even though recognizing them is an essential step toward preventing them from causing them problems. ...In my opinion, that is the biggest single problem of mankind because it, more than anything else, impedes people’s abilities to address all other problems and it is probably the greatest source of pain for most people.

Your ability to see the changing landscape and adapt is more a function of your perceptive and reasoning abilities than your ability to learn and process quickly.


Reality + Dreams + Determination = A Successful Life


As I mentioned, for most people success is evolving as effectively as possible, i.e., learning about oneself and one’s environment and then changing to improve.

Also, for most people happiness is much more determined by how things turn out relative to their expectations rather than the absolute level of their conditions.This basic principle suggests that you can follow one of two paths to happiness: 1) have high expectations and strive to exceed them, or 2) lower your expectations so that they are at or below your conditions. Most of us choose the first path, which means that to be happy we have to keep evolving.

BUT WHY NOT TRY THE SECOND WAY ?

Another principle to keep in mind is that people need meaningful work and meaningful relationships in order to be fulfilled. I have observed this to be true for virtually everyone, and I know that it’s true for me.

As Freud put it, “Love and work are the cornerstones of our humanness.”(This view only makes sense for a few whose name was, is ,and will be recorded by the pen of history. For most people whose lives are not worth living, they just work to live, not to achieve sth. And I doubt there is something as love---perhaps it's just a sexual impulse at youth. Xiao-lai Lee also wrote about the credibility of ever-exsistence of love. )

The work doesn’t necessarily have to be a job, though I believe it’s generally better if it is a job. It can be any kind of long-term challenge that leads to personal improvement. As you might have guessed, I believe that the need to have meaningful work is connected to man’s innate desire to improve. And relationships are the natural connections to others that make us relevant to society.

Your Most Important Choices

As I mentioned, the quality of our lives depends on the quality of the decisions we make. We literally make millions of decisions that add up to the consequences that are our lives.Of these millions, I believe that there are five big types of choices that we continually must make that radically affect the quality of our lives and the rates at which we move toward what we want. Choosing well is not dependent on our innate abilities such as intelligence or creativity, but more on what I think of as character. For this reason, I believe that most people can make the right choices.

The following five decision trees show these choices. I believe that those who don’t move effectively to their goals do the things on the top branches, and those who do move to them most quickly do the things on the bottom branches.

First:

Nature gave us pain as a messaging device to tell us that we are approaching, or that we have exceeded, our limits in some way. At the same time, nature made the process of getting stronger require us to push our limits. Gaining strength is the adaptation process of the body and the mind to encountering one’s limits, which is painful. When we encounter pain, we are at an important juncture in our decision-making process.

Most people react to pain badly. They have “fight or flight” reactions to it: they either strike out at whatever brought them the pain or they try to run away from it. As a result, they don’t learn to find ways around their barriers, so they encounter them over and over again and make little or no progress toward what they want.

Those who react well to pain that stands in the way of getting to their goals—those who understand what is causing it and how to deal with it so that it can be disposed of as a barrier—gain strength and satisfaction. This is because most learning comes from making mistakes, reflecting on the causes of the mistakes, and learning what to do differently in the future. Believe it or not, you are lucky to feel the pain if you approach it correctly, because it will signal that you need to find solutions and to progress. Since the only way you are going to find solutions to painful problems is by thinking deeply about them—i.e., reflecting — if you can develop a knee-jerk reaction to pain that is to reflect rather than to fight or flee, it will lead to your rapid learning/evolving.

Your very unique power of reflectiveness—i.e., your ability to look at yourself, the world around you, and the relationship between you and the world—means that you can think deeply and weigh subtle things to come up with learning and wise choices. Asking other believable people about the root causes of your pain in order to enhance your reflections is also typically very helpful— especially others who have opposing views and who share your interest in finding the truth rather than being proven right.

If you can reflect deeply about your problems, they almost always shrink or disappear, because you almost always find a better way of dealing with them than if you don’t face them head on. The more difficult the problem, the more important it is that you think hard about it and deal with it. After seeing how effectively facing reality—especially your problems, mistakes and weaknesses— works, I believe you will become comfortable with it and won’t want to operate any other way.

So, please remember: Pain + Reflection = Progress

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