The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to talk about why 98% of investors suffer from nearsightedness. Now, why 98%? Honestly, I have no idea. It could’ve been 99%, but it looks better than 97% or better than 99% being overly assumptive that just 1% do not suffer from nearsightedness. But the reality is I think that most investors suffer from nearsightedness which is a very common thing and it gets back to this idea of recency bias which I believe we talked about in Show 196 or 197 on the daily podcast here. But what investors do (and I see this in particular with traders all the time) is they get into a position or a series of trades and that small grouping of trades that they get into, it could be as small as one, it could be three or five trades. They assume that because those trades did well or did bad that the rest of their trading is going to follow suit. It’s this recency bias that the last occurrence or the last series of occurren