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Behavioral Intelligence

Don’t Be Fooled by Law of Small Numbers

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Click on the image above to watch the video.
 

In order to be efficient, our minds rely on many mental shortcuts. The majority of shortcuts serve us very well, however there is a downside. They can play havoc on our decision-making process, especially in the financial realm.

Related: Mentally Preparing to Handle Volatility

Check out the one-minute video above and learn how the “law of small numbers” may be influencing many investors today to draw certain conclusion based on very limited and somewhat spurious data.

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