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In Probabilities in Trading – How Your Mind Is Tricking You, I introduced some errors people make in regards to probabilities–namely, availability bias and attributing increased probabilities if we can come up with more reasons to back our claim. Both of these tendencies will lead us astray. In this article, I discuss these concepts a bit more, but also get into the relevant factors of how market move…in other words, what to base trading decisions…
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