Sunk cost fallacy

Trading is often about how to take the appropriate risk without exposing yourself to very human flaws.
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Iron
Posts: 6793
Joined: Fri Dec 11, 2009 10:51 pm

http://youarenotsosmart.com/2011/03/25/ ... t-fallacy/

This explains a lot of what happens in the markets IMHO.

Jeff
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PeterLe
Posts: 3715
Joined: Wed Apr 15, 2009 3:19 pm

hi Jeff
interesting link; I'd agree with that Jeff
I just tested it on the mrs and she said "that's why the most expensive shoes are sometime the best" :?:
regards
Peter
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Iron
Posts: 6793
Joined: Fri Dec 11, 2009 10:51 pm

That reminds me of an article I read the other day, which basically said that blind testing showed that a £5 bottle of wine from your local supermarket might taste just as good as something twenty times the price!

http://www.telegraph.co.uk/foodanddrink ... wards.html
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