The Bell Curve Controversy

The Bell Curve Controversy is one of the most powerful concepts to prevent the behavior of the world around us including the stock markets. It is a book written in 1994 by psychologist Richard J. Herrinstein and political scientists Charles Murray in which they argue that the imaginary line from the curve shows the most likely occurrence or the most common occurrence to estimate the probability of happening. What is most likely to happen and what is very unlikely to happen and this can be applied in all boxes of life right to estimate the exam sources, IQ level, rolling dice, etc and of course, the stock market and talking about the stock market traders use this concept to take high probability trades.

Now, the question arises how do the traders use this concept? Well, traders look at the past performance of the stock and based on that they find out how much is the stock likely to move in a given period. In other words what is very likely to happen and what is very unlikely to happen and once they have that the trade becomes more of a mathematical problem than a matter of speculation. Now how exactly do they do that? Well for dad we need to understand the concept of standard deviation and the very important 68-95-99.7 rule. So in very simple words, The Bell Curve Controversy is the estimation or prediction of what will be going to happen in the future. This is all about The Bell Curve Controversy.