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

Category: Psychology

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

6 Responses to “Understanding Context and Wetware Bias”

  1. The best things in life are unexpected – because there were no expectations – ELI KHAMAROV

  2. Pat Shuff says:

    “What you see is what you get!”

    – Dr. Wilson

  3. HarryWanger says:

    Was this posted here yesterday or am I going crazy?

  4. Joe Retail says:

    Harry

    Are the two mutually exclusive options?

    (Sorry, it was too good a straight line to resist.)

  5. torrie-amos says:

    thatsa life

  6. sinomania says:

    Chinese Whispers ;-)