Understanding Context and Wetware Bias
Terrific out of context quote that is very applicable to investors and traders:
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“Dozens of studies have shown that witnesses’ memories of events often change when they are supplied with new contextual information. Itiel Dror, a cognitive psychologist who has done extensive research on eyewitness and expert testimony in criminal investigations, told me, “The mind is not a passive machine. Once you believe in something—once you expect something—it changes the way you perceive information and the way your memory recalls it.”
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In the bull bear debate, think about all of the cognitive foibles and wetware errors we each bring tot he table in terms of processing news, data and information.
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Source:
Trial by Fire
David Grann
New Yorker, September 7, 2009
http://www.newyorker.com/reporting/2009/09/07/090907fa_fact_grann
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November 2nd, 2009 at 9:42 am
The best things in life are unexpected – because there were no expectations – ELI KHAMAROV
November 2nd, 2009 at 10:42 am
“What you see is what you get!”
– Dr. Wilson
November 3rd, 2009 at 10:56 am
Was this posted here yesterday or am I going crazy?
November 3rd, 2009 at 11:05 am
Harry
Are the two mutually exclusive options?
(Sorry, it was too good a straight line to resist.)
November 3rd, 2009 at 12:10 pm
thatsa life
November 3rd, 2009 at 12:12 pm
Chinese Whispers ;-)