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Daily Archives: April 20, 2016

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Know This First: Risk Perception Is Always Irrational.

Trading PsychologyBy Chris TateApril 20, 20162 Comments

Our perceptions, of risk or anything else, are products of cognitive processes that operate outside our conscious control — running facts through the filters of our feelings and producing subjective judgments that disregard the evidence. The behavioral scientists Melissa Finucane and Paul Slovic call this the Affect Heuristic; it gives rise to what I call…

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