In trading, we automatically have two of the red flags the authors raised in Think Again:

Self-interest
Attachment

The two emotional stimuli are part of the reasons that we hold on to losers and cut our winners. And because markets are ambiguous and uncertain, the other two red flags come into play:

We are misled by false patterns - […]

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We have been discussing the decision-making process neurologists have found to be the norm for humans.
We have seen that we use three processes:

Pattern recognition
Emotional Tagging and
One-decision-at-time.

We have also seen that these processes work where the decision-maker has experience in the situation and type of decision to be made. Tonight, we look at where the processes […]

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 Hi All
 Preview video of webinar & Registration at -
http://www.barrometrics.com/idevaffiliate/idevaffiliate.php?id=103&url=http://www.barrometrics.com/introduction.html

6-Week Webinar Course (small class)-next intake will be in April 2009.
A HOLISTIC APPROACH WHICH IS UNIQUELY STC
Please write to me at : yintrader@gmail.com,if interested in the next intake or related enquiries about courses or seminars run by Ray Barros.
You can also visit:
http://www.barrometrics.com/idevaffiliate/idevaffiliate.php?id=103&url=http://www.barrometrics.com/introduction.html

ANA aka IDkit
Ag Moderator […]

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Yesterday I wrote about the role of Pattern Recognition in our decision-making process. Today I look at ‘emotional tagging’.
D’amasio and others have suggested that when we make a decision, we store an associated emotion. The stronger the emotional tag, the stronger the memory. This is fine when the previous response is appropriate to the […]

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In previous blogs, I have discussed the nature of the our decision-making process. I spoke about:

The dangers of the heuristics and mindsets - Psychology of Intelligence Analysis and
The fact we have hard-wired DNA that leans us to an impulsive or strategic model of decision-making ¡V The Impulse Factor.

We add to the dialogue tonight.
In ‘Think […]

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There is little talk now of the ‘conundrum of interest rates’; in the not so distant past, the yield curve was indicating a recession and ‘all’ were puzzled at how this could be, given the ‘buoyant’ economic conditions. Now only few are commenting on the state of the long-term yields, viz, the 30-year bonds.
Figure […]

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http://www.cnbc.com/id/15840232?video=1071814115&play=1
Airtime: Tues. Mar. 24 2009 | 09 23 00 ET
Charting where the Dow Jones Industrial Index and Dollar Index will head next, with Ray Barros, CEO of Ray Barros Trading Group speaking to CNBC’s Amanda Drury.
http://www.cnbc.com/id/15840232?video=1071826363&play=1
CNBC videos :
Airtime: Tues. Mar. 24 2009 | 09 23 00 ET
Based on technical analysis, gold is set to […]

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It’s worse than most people think. D.C. has pretty much eliminated The United
States Constitution. Taxing AIG, limiting executive pay, it’s all
un-Constitutional. …but they’re doing it anyway… Barring a revolution,
from here on out, this is ‘America’ in name only.
Something I’ve been sharing around the U.S. over the last couple of weeks:
-wrb
——
Basically, HR 1586 just finishes off […]

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I was going to write about the markets today but a couple of pieces in the Strait Times convinced me otherwise.
The most important news was tucked away on page A6. Quoting Bloomberg, Associated Press and France-Presse, the ST article header read:
“US govt to tighten control over executive pay: Report”.
I did a double take - surely […]

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In the past month or so, I have been receiving an unusually large number of enquiries from Nature of Trend readers about Barros Swings - their use and construction. And when we announced the webinar starting April 6, the enquiries increased.
In the interest of saving time and effort, rather than answer the posts individually, I’ll […]

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