I love this game. It’s us against the world to try and make a buck in this market. Every day brings new opportunities and story lines. The hard part is distinguishing between what matters and what is just noise. We’re hard wired to need to gossip and tell stories. It’s who we are going back to the cognitive revolution 70,000 years ago. In fact, it would be unnatural for us not to participate.
Many of us get our gossip from the market. That’s one reason why we all get along and share ideas with one another throughout the trading day. I see some women, for example, watching Bravo and the gossip shows on E and stuff like that. We all get our gossip in different ways. While there seems be little harm done by watching the kardashians or vanderpumps, by following some narratives in the stock market, there is actually a lot of money at risk. So for those of us who get our gossip fix from market story lines, it’s especially hard to differentiate reality from fairy tales. [Read more…]