Tag: Dunning-Kruger Effect
Mind Over Market: Dodging the Investment Illusions of the Representativeness Heuristic
In the multifaceted world of investing, there’s a cognitive trickster at play – the Representativeness Heuristic – that often twists our perception with its illusionary magic. This fancy term might sound like something out of a Hogwarts spellbook, but it’s actually a psychological wizardry that plays a significant role in investment decisions, especially in the…
The Dunning-Kruger Effect: Don’t Let It Derail Your Investment Strategy
Have you ever come across someone who believes they are an expert in a certain field, but their actual knowledge and skills fall far short? This phenomenon is known as the Dunning-Kruger Effect, and it can have a significant impact on your investment strategy if you’re not careful. In this post, we’ll explore what the…