Words Cannot Save You
When people get nervous they embrace many unhealthy remedies. They do all they can to avoid feeling nervous. In the markets, a popular remedy is talking. People like to talk and talk and talk. And talk and talk and talk. When positions are going against them, people construct a story of why they bought XYZ […]
Pareidolia
Bulls and Bears suffer from the same affliction — pareidolia. That is, seeing something, typically a pattern or image, that isn’t there. Examples of pareidolia: Bulls see the current equities chart pattern as one that looks like a previous uptrend. From this, they forecast higher prices. Bears, as you can imagine, see the opposite. People […]