Glossary › variance
Trading glossary · psychology
variance
The natural up-and-down of results from luck, so even a good plan has bad stretches.
The fuller meaning
The natural spread of results around the average. It means even a solid method has stretches that look bad and a poor one can look good for a while; judging decisions by process, sizing small and using large samples keep variance from misleading you.
variance.
Related words
anchoring · boredom trading · chasing · cognitive bias · confirmation bias · consistency · cool-down rule · discipline · disposition effect · emotion