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RE: Are Humans Really Sophisticated Trading Computers? [TALKIN' BOUT MATH, NO FORMULAS]

in #math6 years ago

" If the signal to noise is low, we are skeptical about what we observe and tend to place more weight on our own internal beliefs, even in the face of contradictory evidence. On the other hand, if the signal to noise is high we respond to new information as the truth and revise our internal beliefs to quickly match what we observe "

I totally agree that. This is an aspect that never fails to surprise me.