Chapter 7. Decision-Making


“’Would you tell me please which way I have to go from here?’ ’That depends a good deal on where you want to go,’ said the cat.”

 --Lewis Carroll[1]

“We see heuristics as the way the human mind can take advantage of the structure of information in the environment to arrive at reasonable decisions.”

 --Gerd Gigerenzer and Peter M. Todd[2]

Trend followers approach their trading decisions in a distinctly different way from most traders. As you may have guessed by now, they make it simple. For example, each day traders attempt to evaluate the relentless onslaught of confusing, contradictory, and overwhelming market information to make trading decisions. There is little or no time for in-depth reflection to fully understand ...

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