When Trading Financial Markets – What You See Isn’t Always what You Get

Financial Markets – What do you see?

Several weeks ago, I was walking through the Phoenix airport with my wife—we were there to visit her parents. As we walked to baggage claim, I walked right by my wife’s best friend who was standing there ready to give me a hug. She had flown to Phoenix to surprise my wife. I walked right past her without even considering that I just missed a person that I’ve known for well over 13 years. Flash forward to yesterday when my wife and I are starting a beautiful kid-free date night at our favorite steakhouse. When our server comes over to our table and taking our drinks, he asks, “Mr. Mirkin do you know who I am?” I look at this man in the face, and I don’t have the slightest idea. I politely say that I can’t recall and ask him to tell me. He smiles and tells me, “you know me by my initials, J.B. I also work at the golf course at La Costa.” It was then I instantly recognize him and become a tad embarrassed. I practice at the club often and see J.B. all the time.

How did I miss my wife’s best friend at the airport and then not recognize a guy I see every single week?

financial marketsIt is much easier to trick the human brain than we realize. Magicians do it all the time, but I just showed you how I did it to myself. It has to do with context. Our memories are context sensitive and nuanced. I did not recognize my wife’s best friend because my brain had never expected to see her at an airport hundreds of miles from home—airport crowds are generally comprised entirely of strangers. In the case of J.B., although I see him all the time and we are friendly, I only knew him in the context of the golf course in his La Costa Resort uniform. So when I saw him in an entirely different setting, dressed in a different way, my brain was unable to recognize him.

The inability to recognize similar patterns in different circumstances causes people to make critical mistakes selecting viable trading opportunities in the financial markets.

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Trade Ideas

Founded in 2002, Trade Ideas software was created to be an edge for traders by accomplishing what no human can doówatch every trade of every stock and alert to profitable activity. TI Proís OddsMaker backtests and optimizes your strategies against the entire market, not just a basket of stocks. Donít spend hours researching, pouring over charts, or programming backtests. Get the Trade Ideas Advantage. Find. Test. Invest.

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