The paradox of knowledge in stock trading

The book explains that when we use knowledge to try and predict what's going to happen, we affect the outcome.


This is something that is observable in stock trading. When a trader uses instruments that helps him predict the future he is in turn affecting the price by buying or selling. In a small scale this doesn't change much, but when many traders use the same instrument the effect can be huge.

Steve Cortis
23 June 2018