Logic Test Solution

Spoiler — This is the solution to yesterday’s Logic Test.  Readers should check out the test before reading the solution.  The source of the problem (which we obviously modified) is poker expert Steve Zolotow. Solution We sympathize with several respondents who said, "I don’t get kings that often and I am going to play them!"  […]

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A Logic Test

At "A Dash" we are seeking ways to help investors and traders fight the traps described in the literature of behavioral finance.  One method, which we used successfully in the classroom many years ago, is to present problems wildly different from the main theme.  Later, we try to show the connection. This problem came from […]

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Avoiding Confirmation Bias

Sometimes an answer is easier to see if one steps away from the immediate problem, instead looking at an analogous situation.  This is a common teaching method, and one that we use frequently at "A Dash." Background Getting away from the immediate question helps to avoid what behavioral psychologists call the confirmation bias.  This tendency […]

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More Homework: Interpreting What You Read about Market Action

One of the biggest traps for the smart investor or trader is the often persuasive commentary about recent market action. When the Dow had a decline of over 1% last June, we highlighted this problem, calling it the biggest mistake of the individual investor.  As background, readers should go back and look at that article, […]

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