Spurious practice is a concept that must be very well understood so that we are ready to identify possible false scenarios, the famous false alarms, whether those set up especially to look like something they are not, in an attempt to deceive, or those that simply give a false alarm. opinion due to certain statistics being combined in different ways.
Still a bit confused? Don’t worry, because we will explain more about what spurious practice is and what types of errors, precautions and how we should face this concept that is so used in different environments, including in the financial environment. Check out!
What this article covers:
What is spurious practice?
To talk about spurious practice, we must first try to understand what this concept means. The word “spurious” means in Portuguese something that we are not sure is true, something perhaps hypothetical or that is simply false, adulterated. The spurious practice does not have, at least not necessarily, the connotation of declared falsehood, but of presumed falsehood.
The spurious practice is a figure of speech that concerns a certain situation that has an air of being true, but the information, if not falsified, is at least not as grounded as it should be.
This makes spurious practice such a necessary concept to understand. In the financial world, spurious practice refers to exactly this scenario, and this is a segment where it is easy to end up falling into such.
The market and the financial world in general are full of information, numbers, indices and other details that can be extremely false in relation to each other, and it is not uncommon to be mistaken about a situation, to be carried away simply by the numbers.
That is why spurious practice is a very complicated situation and must be known as much as possible, in order to avoid several errors that can cause damage.
What are the consequences of spurious practice?
The first and most common consequence of spurious practice is for a given individual to be carried away by information that is not necessarily true. This is a very common situation in the market, where the numbers “lie”.
Of course, precise information such as a number could never lie, however, it is not an exaggeration to say that they can point in an erroneous direction, or at least force a certain interpretation.
This is a classic case of spurious practice, where the consequences of acting on a misreading, no matter how convincing, can range from a truly disastrous scenario to a scenario where there is scope to correct course before an outcome is even achieved. bad indeed.
Of course, in these scenarios we are taking into account a spurious practice that occurred by accident, but the spurious practice can literally be a factoid, a narrative created with the idea of falsifying or misleading others.
How to avoid spurious practice?
Avoiding spurious practice is something extremely complicated, but it is possible that it is avoided. The first step is to try, as much as possible, to gather as much information as possible and thus always act based on the truth, and always try to avoid making the easiest decisions.
Another effective way of trying to avoid spurious practice is to always choose to gather the maximum perspective and different points of view before taking any action.
What are the main targets of spurious practice?
The spurious practice, when carried out in bad faith, can involve any type of financial agent. From a small trader who was tempted to make a bad decision by “half truths” that were told to him, even a gigantic and multi-million dollar institution like a bank. All this depends on the intention of whoever is spreading the spurious practice.
Therefore, being smart about narratives and small “fake news”, which seem above suspicion, is absolutely necessary to avoid the practice. So share it with your friends and family so they too know what a spurious practice is.