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Clear filtersPsychology
Confirmation Bias
Seeking and believing evidence that supports a position already held. In markets it is amplified by the sheer volume of evidence available on every side.
Intermediate4 min read
Psychology
Overtrading
Taking more positions than a method supports. Costs scale linearly with frequency while edge does not, so activity beyond a point is a direct transfer of capital to costs.
Intermediate4 min read
Psychology
Process and Outcome
In any domain with substantial randomness, a good decision can produce a bad result and vice versa. Judging decisions by their outcomes teaches the wrong lesson at exactly the wrong moment.
Intermediate4 min read