re: Separating emotions from equity trading

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The exact name escapes me, but behavioral finance talks about false positives and false negatives. For example, if a stock does well and you bought it, you're a genius. If you're a genius then you have to be able to pick any stock. We also tend to look at the winners we've picked harder than the losers. If we purchase a stock that goes down, it's not because we made a poor decision, but because some external factor was unavoidable.

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