Representativeness Bias
Real-life example:
A trader sees that the HOT coin looks like a coin that has pumped, assumes it will rise the same way, and ignores base rates.
GNS and PEPE coins are judged by similarity, not data.
Why does this happen?
The brain uses stereotypes and pattern matching for protection.
4 steps for protection
1- Check base rates
2- Use statistics, not stories
3- Evaluate fundamentals
4- Ignore superficial similarity
#BinanceSquare #CryptoCommunity #writetoearn #Binance #bitcoin
$PEPE $SOL $BNB
Real-life example:
A trader sees that the HOT coin looks like a coin that has pumped, assumes it will rise the same way, and ignores base rates.
GNS and PEPE coins are judged by similarity, not data.
Why does this happen?
The brain uses stereotypes and pattern matching for protection.
4 steps for protection
1- Check base rates
2- Use statistics, not stories
3- Evaluate fundamentals
4- Ignore superficial similarity
#BinanceSquare #CryptoCommunity #writetoearn #Binance #bitcoin
$PEPE $SOL $BNB
