|What is Cherry Picking?
Cherry picking is the act of pointing at individual cases or data that seem to confirm a particular position, while ignoring a significant portion of related cases or data that may contradict that position. [web definition]
To carefully sort through an offering, looking for opportunity or hidden value.
Traders will believe they are smart enough to do what the Second Opinion definition is doing - select gems from a list of offerings. Thus: I have found xyz pattern in the chart of ABC stock. This pattern has given excellent results earlier, therefore I am going to trade it with big stakes. BUT: has the trader looked at other occurrences of the pattern which did not work out? Or, worse, was there only one earlier pattern of this kind? If this is so, then the pattern has no forecasting ability.
Trading MUST be based on probability. If this has happened a 100 times earlier, was successful 50 times, then there is a 50% probability that the pattern will make money. Our skill lies in maximizing profits and minimizing losses.