The Nocebo Effect, from Craig Mee

December 11, 2012 |

 I found this article about the nocebo effect quite interesting on a number of fronts. It made me think about religion and applications to trading, as well as what sort of trader you are and what you may be affected by. There may be a scientific basis as to why you should turn off the tv and not read any one's views of what you're looking to invest in:

"Most experienced the placebo effect and their pain decreased. But to
the doctors astonishment, 15 per cent got worse… They suffered the
nocebo effect."

"I think if you are told something from someone who has the authority, whether it's a witch doctor or physician and you take that in, then I think your entire physiology starts to play around with that belief."

I think about people's susceptibility to salesmen and how salesmen often risk being prosecuted for losing investments simply due to an individual's biological make up.


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