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GM.
Today's learning from Taleb's book Antifragile.
This is a valuable tip for all (wannabe) traders and helpful to those who don't want to give back all their hard-earned meme coin gains.
Our brains have a predilection for shortcuts, and the variation is easier to notice (and store) than the entire record.
Example:
If you announce to someone "you lost $10,000," he will be much more upset than if you tell him "your portfolio value, which was $785,000, is now $775,000."
It requires less memory storage. This psychological heuristic (often operating without our awareness), the error of variation in place of total, is quite pervasive, even with matters that are visual. 1 reply
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