Judgmental “Heuristics” Or Biases and Developing Your Trading System: Part I By, Dr. Van K. Tharp
Editor’s Note: Dr. Van Tharp’s content is timeless and our goal is to continue to share his material with our readers. Today’s tip is material from a past article. At any given instant, over two billion bits of information impinge upon your senses. Yet consciously, we can only process “7 +or – 2 chunks” of information. This tremendous reduction in the information necessary to act upon external signals or make decisions is accomplished through various “heuristic” rules or shortcuts. These rules, which are essential if you are to make any […]