Why The Squad Make Lousy Traders
With more than a passing acknowledgment of the wisdom (or lack thereof) to attribute the results generalized to small samples I can say that all the people I know that I have observed to be successful athletes and players cards are lousy futures and options dealers.
By ugly I mean lose everything in the account of the offices of one or two even though there may have been one or more chain stores had previously worked well.
I was wondering why and if something useful can be learned from their experience. One feature that seems common was that the players seem to overestimate the chance to win a futures or options trading, so they tend to minimize or even completely ignore the risk of loss.
Are to blame for this behavior of the transfer process from gambling. When you make a contribution to the sporting event or call the poker hand was broken effect. So the usual process of a gambler to win or lose everything forever, and does not seem so strange that the same applies psychology to their trading. Working out is a bit ‘different that you can lose more than the value of your account, but in practice, the broker is sold out and help avoid the pain.
It’s quite interesting but not very enlightening. I think maybe I got the insight, while I was sorting through books and picked up “Blink:. The power of thinking without thinking”
Blink us into the power of “fine-cut.” Thin cut is a cognitive trick that involves taking a small section of data that can capture everything in a blink of an eye, or data from very few samples scattered, and let your intuition do the work for you.
Take the “love lab” at the University of Washington psychologist John Gottman where the thin slice was how couples interact since the early 1980s. Within 15 minutes of pure observation, Gottman can predict with 90% accuracy whether a couple will be together for 15 years. Or consider how “thin slices of an art expert recently ancient Greek statue year 2500 in the blink of an eye and he could say it was a fake, after a swarm of experts had already confirmed his ancestry. Or retired soldier whose fine intuition method can thwart the super-computers and officers in the U.S. armed forces.
More suited to a series of exercises, for example, card players professional “feel” of a deck of cards had an irregular long before they were able, in particular, to identify and sings of abuse. professional card players were also able to sense the irregularities significantly faster than others.
Blink draws from cognitive psychology to explain how those powers are thin-slicing intuition has nothing to do with the supernatural, and all that naturally evolved ‘unconscious adaptation. Our consciousness is just the tip of the iceberg of cognitive and what we think of as intuition is actually due to unconscious rapid cognition, frugal and fast data processing, which continues unconsciously. Thin-slicing to use this powerful adaptive unconscious, so that we can make good decisions based on limited information and minimal handling.
