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Old March 13th, 2010, 09:24 AM   #1 (permalink)
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Default Everyday Perception of Risks

Happy Weekend Traders,

Lately I've been setting a personal trend looking at behavioral economics. I just happened to find a very interesting video on how people go about evaluating risk throughout a normal day.



This puts even more emphasis on trading the market in a neutral unbiased mood. Traders need to turn their risk decisions in "cold" decisions and not "hot" ones.

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Old March 13th, 2010, 10:23 AM   #2 (permalink)
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Default Re: Everyday Perception of Risks

Gosh, it's a great idea, but I can't help but notice the lack of ground it appears has been covered here. I mean it's like this professor guy didn't know what the hell he was saying.." Imagine if you overtake someone driving a vehicle..." umm..what? Wtf is he talking about our everyday activity of carjacking someone? And in thinking about the actual problem he is talking about attempting to tackle, I mean there are just so many psychological variables that combine to birth a decision. It's like this giant amalgamation of experiences and emotions that we would have no way of analyzing unless we could first develop a complete human thought map, which is still in its infant stages itself.

I personally wouldn't put any money on much progress with human thought mapping simply because there are a few basic thought processes that humans share, but the vast majority of thought processes that happen in our brains are individual specific, meaning each person has an entirely different process that their brain goes through to decide to get gas for their car. These thought processes are shaped throughout life by varying experiences, emotions and teachings. So each mind gets to them using a route with as much as 100 billion completely different pathways than a guy standing right next to him getting gas for the exact same reason as him. We are all truly unique, and sometimes I think researching our psychology to the degree that this guy is fumbling with is almost vacuous. So good luck to him, and his jumbled thoughts.
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