The Mirror in the Market: A Tale of Two Triangles

The chart, "Compliance Across Market Segments," uses a mirrored design to show the lack of correlation between how long someone has been in the market and their success in following rules. If practice made people perfect, the colors would shift from red to bright blue as experience grew.

Instead, the researcher found a "Mirror Effect." Whether looking at the warm-colored Institutional Giants or the cool-colored Individual Leaders, the scores stay remarkably similar. This almost "zero correlation" proves that even with 20 years of experience, the hurdles of the two-day rule remain a constant friction.

A mirrored map showing that both institutional investors and individual insiders hit a "compliance plateau" that practice cannot fix.

Understanding the Worlds

The study looks at two different sides of the same mirror to find these connections:

  • The World of Giants (Institutional): These are big companies with many computers and teams. They are shown in the bottom triangle, counting experience from 0 to 22 years.
  • The World of Leaders (Individuals): These are single people, including Board Directors. They are shown in the top triangle, where the experience axis is flipped to create a perfect reflection.

Why the Mirror Matters

The most important discovery here is that “Market Experience” and “Reporting Accuracy” are not working together. In many fields, doing a task for decades makes you an expert, but here, the scores stay at a plateau.

This suggests that the problem isn’t a lack of smarts or money, but a “Market Friction” that humans cannot easily overcome alone.