How time preference shapes trading decisions
- 2025-12-17
- Posted by: Wmax
- Category: Tutorial
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This article explores how time preference drives trading behavior. Analyze the intertemporal inconsistency caused by hyperbolic discounting, the distortion of rationality by high-frequency feedback, and how action bias destroys compound interest. It is recommended to combat human shortsightedness through institutional design, build long-cycle thinking, and make time an ally rather than an enemy in transactions.
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