Be aware of your biases from "summary" of The Psychology of Money - Gujarati Edition by મોર્ગન હાઉઝેલ
Our biases are like silent saboteurs that lurk in the shadows of our decision-making process. They influence our perceptions, judgments, and actions without us even realizing it. By being aware of our biases, we can shine a light on these hidden forces and take steps to counteract their negative effects. One common bias that many people fall victim to is confirmation bias. This is the tendency to seek out information that confirms our existing beliefs and ignore or discount evidence that contradicts them. For example, if we believe that investing in a particular stock is a good idea, we may only pay attention to news articles or opinions that support our view, while dismissing any warnings or negative information. Another bias that can lead us astray is overconfidence bias. This is the tendency to overestimate our knowledge, skills, and abilities, leading us to take unnecessary risks or make poor decisions. For example, someone may believe that they are an expert in picking winning stocks and trade frequently, only to incur significant losses due to their misplaced confidence. Anchoring bias is another common pitfall that can ...
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