Here are a couple of books on how we think. They come at the subject from different directions and make good companions. Highly recommended. Actually, all you need to know is that everything you know is a lie.

Don't Believe Everything You Think:
The 6 Basic Mistakes We Make in Thinking
by Thomas E. Kida

From Amazon:

Do you believe that you can consistently beat the stock market if you put in the effort? —that some people have extrasensory perception? —that crime and drug abuse in America are on the rise? Many people hold one or more of these beliefs although research shows that they are not true. And it’s no wonder since advertising and some among the media promote these and many more questionable notions. Although our creative problem-solving capacity is what has made humans the successful species we are, our brains are prone to certain kinds of errors that only careful critical thinking can correct. This enlightening book discusses how to recognize faulty thinking and develop the necessary skills to become a more effective problem solver.

A Mind of its Own:
How Your Brain Distorts and Deceives
by Cordelia Fine

From Amazon:

Many psychological studies show that on average, each of us believes we are above average compared with others—more ethical and capable, better drivers, better judges of character, and more attractive. Our weaknesses are, of course, irrelevant. Such self distortion protects our egos from harm, even when nothing could be further from the truth. Our brains are the trusted advisers we should never trust. This "distorting prism" of selfknowledge is what Cordelia Fine, a psychologist at the Australian National University, calls our "vain brain." Fine documents the lengths to which a human brain will go to bias perceptions in the perceiver’s favor. When explaining to ourselves and others why something has gone well or badly, we attribute success to our own qualities, while shedding responsibility for failure. Our brains bias memory and reason, selectively editing truth to inflictless pain on our fragile selves. They also shield the ego from truth with "retroactive pessimism," insisting the odds were stacked inevitably toward doom. Alternatively, the brain of "selfhandicappers" concocts nonthreatening excuses for failure. Furthermore, our brains warp perceptions to match emotions. In the extreme, patients with Cotard delusion actually believe they are dead. So "pigheaded" is the brain about protecting its perspective that it defends cherished positions regardless of data. The "secretive" brain unconsciously directs our lives via silent neural equipment that creates the illusion of willfulness. "Never forget," Fine says, "that your unconscious is smarter than you, faster than you, and more powerful than you. It may even control you. You will never know all of its secrets." So what to do? Begin with self-awareness, Fine says, then manage the distortions as best one can. We owe it to ourselves "to lessen the harmful effects of the brain’s various shams," she adds, while admitting that applying this lesson to others is easier than to oneself. Ironically, one category of persons shows that it is possible to view life through a clearer lens. "Their self-perceptions are more balanced, they assign responsibility for success and failure more even-handedly, and their predictions for the future are more realistic. These people are living testimony to the dangers of self-knowledge," Fine asserts. "They are the clinically depressed." Case in point.