Ep. 500: Charles Faulkner Special with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
00:00
The Effect of Emotional Measurement on Risk
If you like something, you'll rate it as less risky just because you like to do it. And if you don't like something,you'll systematically rate it as more risky due to your dislike of it. So we have this emotional measurement of risk. Also risk declines with familiarity that as one becomes used to trading every day and putting on positions,. It begins to seem ho-hum and it feels less risky - which has nothing to do with the estimate of the risk.
Play episode from 22:02
Transcript
