Why it matters
It explains why advice and marketing often diverge from your interests.
Operational use: this is how the market taxes urgency. When it appears, slow down or size down.
Common trap
Assuming someone is aligned with you because they sound confident.
Example
A broker benefits from churn; you benefit from selectivity.
Operational cue: if you can’t point to it on the chart, in the DOM, or in your broker logs, treat it as a story and trade smaller.
Notes
Incentives don’t imply malice, but they predict behavior.
Quick rule
- If you see this repeatedly, you are in a different regime than your model assumes.
- Regime change usually means position size change.
- When in doubt: trade smaller, or don’t trade.