The Illusion of Understanding the Trader

In the black swan, taleb introduced the notion of a narrative fallacy to describe how flaud's stories of the past shape our views of the world. Taleb suggests that we humans constantly fool ourselves by constructing flimsy accounts of the past and believing they are true. The halo effect helps keep explanatory narrative simple and coherent by exaggerating the consistency of evaluations. Good people do only good things and bad people are all bad. Any trace of kindness in someone so evil violates the expectations set up by the halo effect.