Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets

Abstract

We often mistake success as the outcome of skill, perseverance, and the application of knowledge, while it happens in all walks of life, that is, in business or politics; it is much more prevalent in stock market trading and investments. We attribute the personal wealth of investors to the application of their skillful analytical abilities based on formulaedriven and technically sound analysis. Nassim Nicholas Taleb, a Mathematics Professor, an Ivy League education and options trader, in his book, 'Fooled by Randomness' demonstrates a wondrous insight into the share markets, emphasizes disguised luck which can often be mistaken for skill and knowledge.