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There's a big question that directly impacts every choice we face: "Do I have enough data to make a decision?"
We have to ask ourselves some version of this many times each day, for many different reasons, but never more so than when we're considering a trade or investment.
In many cases, that data comes to us in the form of… uh-oh… statistics. And those can be frustratingly pliable, easily distorted, and shockingly easy to misinterpret.
There's an old chestnut that essentially says that you need 30 data points for reliable statistical significance.
I spent 15 years as a chemical engineer at DuPont, where I had the chance to work with some truly world-class statisticians on various production quality issues.
And every time I talked with one of them, I was amazed at how this very useful field is mired in terminology and minutiae that causes us more, let's say, "practically minded" folk to pull our hair out!
I found that getting a simple answer from a statistician was a bit like trying to take a sip out of a fire hose.
That's not a particularly good situation to find yourself in when you're on the verge of putting your hard-earned money on the line and making a move with it.
So together, let's look at the right way to take statistics into account when you're getting ready to make a four-figure decision. It's remarkably easy.
About the Author
D.R. Barton, Jr., Technical Trading Specialist for Money Map Press, is a world-renowned authority on technical trading with 25 years of experience. He spent the first part of his career as a chemical engineer with DuPont. During this time, he researched and developed the trading secrets that led to his first successful research service. Thanks to the wealth he was able to create for himself and his followers, D.R. retired early to pursue his passion for investing and showing fellow investors how to build toward financial freedom.