Here is the latest piece in Vanity Fair from the always excellent Michael Lewis. This article is not about trading as such, but about general psychology of human behaviour (which is what understanding the FX market is primarily about).
Some of the trials threw up some very interesting conclusions which we FX traders would do very well to learn from:
- Predictions made by political experts were less accurate than predictions made by simple algorithms
- Doctors place too much faith in intuition
- Stocks that brokers sold outperformed stocks they bought
- Changing lanes in traffic is pointless
- Job interviews are more likely to be unsuccessful on rainy days
