One of the most common errors in reasoning is the post hoc ergo propter hoc fallacy — Latin for ‘after this, therefore because of this.’ The fallacy involves inferring that because one event preceded another, the first event caused the second. A person who takes a herbal supplement and then recovers from a cold may conclude the supplement cured the cold, ignoring the possibility that they would have recovered without it. The rooster who crows before sunrise does not cause the sun to rise.
Closely related is the confusion between correlation and causation. A correlation between two variables means that they tend to occur together — when one goes up, the other tends to go up (or down). Causation means that one variable produces changes in the other. Correlation does not imply causation, though causation does imply correlation. A famous example: ice cream sales and drowning rates are positively correlated — both rise in summer. This does not mean that eating ice cream causes drowning; both are caused by a third variable (hot weather).
Identifying the direction of causation is also important. Even when two variables are causally related, the direction may not be obvious. Countries with higher incomes tend to have better health outcomes. Does income cause health, or does health cause income (because healthy people are more productive), or do both flow from a common cause such as good institutions? Often, causation runs in multiple directions simultaneously.