Selfattribution bias makes investors attribute successes to their own skill rather than luck from "summary" of The Little Book of Behavioral Investing by James Montier
Self-attribution bias is a common psychological quirk that affects how investors perceive their own successes. When investors experience a positive outcome, such as a profitable trade or investment, they are inclined to attribute that success to their own skill and decision-making abilities. This bias leads investors to believe that their success was a result of their own actions and choices, rather than external factors like luck or market conditions. By attributing success to their own skill, investors may develop an inflated sense of confidence in their abilities. This overconfidence can be dangerous, as it may lead ...
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