The 14 Fallacies

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We're often tricked by the news/fundamentals when trading FX. Thus, I have tried to note down the 14 major fallacies that we meet everyday. This is from Jack Schwager's "A Complete Guide to the Futures Markets".

1. Viewing Fundamentals in a Vacuum
2. Viewing Old Information as New
3. One Year Comparisons
4. Using Fundamentals for Timing
5. Lack of Perspective
6. Ignoring Relevant Time Considerations
7. Assuming that Price Cannot Decline Significantly Below the Cost of Production
8. Improper Inferences
9. Comparing Nominal Price Levels
10. Ignoring Expectations
11. Ignoring Seasonal Considerations
12. Expecting Prices to Conform to Target Levels in World Trade Agreements
13. Drawing Conclusions on the Basis of Insufficient Data
14. Confusing the Concepts of Demand & Consumption