I saw someone tweet this the other day and I found it really interesting. I highly recommend watching the video. Kathryn Schulz is an expert on being wrong and what she has to say is highly relevant to trading:
Kathryn Schulz is an expert on being wrong. The journalist and author of “Being Wrong: Adventures in the Margins of Error,” says we make mistakes all the time. The trouble is that often times being wrong feels like being right. What’s more, we’re usually wrong about what it even means to make mistakes–and how it can lead to better ideas.
I plan to get her book too.
It reminds me of a story in How We Decide about the captain who “knew” he was on course and flew his airplane straight into a hill. Reminds me of times when I just “knew” the market would top out yet it never did. Schulz also talks about how our memories fail us. It’s odd how that works but I always remember my performance to be much better than it was. I somehow forget the losses. That’s why I use excel spreadsheets. Speaking of spreadsheets, I’ll share my results this weekend. Have a good one.