Varsity : Trading biases and the illusion of control

Trading biases and the illusion of control

Dive in and read more into this on this Varsity Chapter.

Key takeaways from this chapter:

  • Markets are complex, but the means to analyze markets need not be complex
  • Traders often complicate their charts, subconsciously it makes them think they are invincible, gives them a sense of control
  • Illusion of control makes you spend many hours trying to derive data, which is otherwise pointless
  • More data does not necessarily mean quality of information
  • Recency bias makes you turn a blind eye to the past events (which could have more impact on markets)
  • Having a sense of the overall picture helps you prevent yourself from falling prey to recency bias