Interestingly this post segues nicely from the previous one on Daniel Kahneman and the difficulties we have with thinking of the world rationally. Gold is the perfect exemplar of traders who cannot reason. The chart below is a daily chart of gold which shows that in the last month, gold has risen about 9.2%Its not…
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Trading is a profession that taxes our ability to view problems rationally and in a probabilistic manner. Daniel Kahneman highlights this issue in his book Thinking, Fast and Slow. As expected the majority of poorly performing traders believe it is about having the right coloured lines on their charts of hanging off every pronouncement made…
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