{"id":11403,"date":"2014-08-31T09:00:59","date_gmt":"2014-08-31T13:00:59","guid":{"rendered":"http:\/\/www.Centives.net\/S\/?p=11403"},"modified":"2014-08-31T12:23:40","modified_gmt":"2014-08-31T16:23:40","slug":"the-economics-of-superstition","status":"publish","type":"post","link":"http:\/\/www.Centives.net\/S\/2014\/the-economics-of-superstition\/","title":{"rendered":"The Economics Of Superstition"},"content":{"rendered":"<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.Centives.net\/S\/wp-content\/uploads\/2014\/08\/083114_1619_TheEconomic1.jpg\" alt=\"\" width=\"641\" height=\"641\" \/><\/p>\n<p>The Economist took a look at how superstitions affect investment returns:<\/p>\n<ul>\n<li>The Chinese word for &#8220;eight&#8221; is similar to the word for &#8220;prosperity&#8221;, and the word for &#8220;four&#8221; is similar to the word for &#8220;death&#8221;. The superstitious favour the former, and avoid the latter number.<\/li>\n<li>Local investors in Taiwan are 50% more likely to pick a trade ending in 8 than in 4.<\/li>\n<li>The most superstitious had returns that were 0.03% lower than the least superstitious \u2013 this coincidentally comes out to an annual loss of 8.8%.<\/li>\n<li>There are other superstitions and even cognitive biases that traders fall to, such as the preference for round numbers.<\/li>\n<li>Algorithmic traders can take advantage of such predictable behaviours to extract profits.<\/li>\n<li>Evidence indicates that overtime, as traders get more experienced, they lose their superstitions.<\/li>\n<\/ul>\n<p>Read the rest of the article to find out more details <a href=\"http:\/\/www.economist.com\/news\/finance-and-economics\/21614227-irrational-investment-habits-lead-lower-returns-black-cat-market\">here<\/a>.<\/p>\n<p>Source: <a href=\"http:\/\/www.economist.com\/news\/finance-and-economics\/21614227-irrational-investment-habits-lead-lower-returns-black-cat-market\">The Economist<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Economist took a look at how superstitions affect investment returns: The Chinese word for &#8220;eight&#8221; is similar to the word for &#8220;prosperity&#8221;, and the word for &#8220;four&#8221; is similar to the word for &#8220;death&#8221;. The superstitious favour the former, and avoid the latter number. Local investors in Taiwan are 50% more likely to pick [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":11402,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-11403","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-bulletin"],"jetpack_featured_media_url":"http:\/\/www.Centives.net\/S\/wp-content\/uploads\/2014\/08\/083114_1619_TheEconomic1.jpg","_links":{"self":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/11403","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/comments?post=11403"}],"version-history":[{"count":2,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/11403\/revisions"}],"predecessor-version":[{"id":11405,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/11403\/revisions\/11405"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/media\/11402"}],"wp:attachment":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/media?parent=11403"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/categories?post=11403"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/tags?post=11403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}