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