Understanding George Soros' Theory of Reflexivity in Markets

Understanding George Soros' Theory of Reflexivity in Markets by Alex Barrow

My conceptual framework enabled me both to anticipate the crisis and to deal with it when it finally struck. It has also enabled me to explain and predict events better than most others. This has changed my own evaluation and that of many others. My philosophy is no longer a personal matter; it deserves to be taken seriously as a possible contribution to our understanding of reality. ~ George Soros (via FT)       

The conceptual framework that Soros is referring to is Reflexivity. Understanding what reflexivity is, and how it affects markets (and much more) is one of the most important fundamental truths a trader can grasp.

The idea...