Random walks and butterfly effects on Wall Street

Movies goers will report liking a movie more when they hear beforehand how good it is
Movies goers will report liking a movie more when they hear beforehand how good it is
In our hunt for the investment guru we get hit with a double whammy of cognitive errors. We see patterns in random data because we, as humans, love to find causes and patterns suggest causes. And, we jump to conclusions on the basis of statistically insignificant data, again, because we love to identify causes.
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