๐ PSYCHOLOGY
Base rate neglect is the tendency to ignore general statistical information in favor of specific, vivid details. In trading, it can lead to overestimating the likelihood of rare events and underestimating common outcomes, distorting risk assessment.
#trading #education #mirror_market
โ ๏ธ Educational only ยท Not financial advice
Base rate neglect is the tendency to ignore general statistical information in favor of specific, vivid details. In trading, it can lead to overestimating the likelihood of rare events and underestimating common outcomes, distorting risk assessment.
#trading #education #mirror_market
โ ๏ธ Educational only ยท Not financial advice