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Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

Confirmation biasescontributeto overconfidence Overconfidence effect

Their high competencecan leadto high overconfidence

that wincauseda bit of overconfidence

The illusion of control ... a biasleadsto overconfidence

success and confidenceledto overconfidence

Confirmation biasleadsto overconfidence

Confirmation biasescontributeto overconfidence

Confirmation biasescontributeto overconfidence

These confirmation biasesoften leadto overconfidence

the illusion of having control ... in turnleadsto overconfidence

Hindsight biascausesoverconfidence

Hindsight biascausesoverconfidence

Hindsight biascan leadto overconfidence

Hindsight biasleadsto overconfidence

Past successleadsto overconfidence

past successwill ... leadto overconfidence

his past successleadto overconfidence

The illusion of controlcan leadto overconfidence

The ease of conquest of the Vretcontributedto Unathi overconfidence

a high opinion of oneselfleadsto inherent overconfidence

by their own skilled success(passive) caused byoverconfidence

Hindsight bias , the assumed ability to see how errors were made in the pastcan contributeto overconfidence

Successunfortunately can leadto overconfidence

Successleadsto overconfidence

d self - attribution biasescontributeto the overconfidence

success ... more likelyto leadto overconfidence

this type of successcan leadto overconfidence

Extreme successcan leadto overconfidence

The very success of the utility 's weatherization program in the pastmay have ledto overconfidence

bias?which itselfleadsto overconfidence

This biasalso contributesto overconfidence

by availability bias(passive) caused byoverconfidence

biasesleadto overconfidence

Analysis Self - beliefcan leadto overconfidence

The easy availability of investing informationleadsto overconfidence

This confidencecould leadto overconfidence

confidenceleadsto overconfidence

confidenceledto overconfidence

the different behavioural biasescan leadto overconfidence

Excessive confidenceleadsto overconfidence

you to defeatto leadyou to defeat

to poor investment decisionsleadsto poor investment decisions

to overtrading andto leadto overtrading and

to great investment in financial assets that you would otherwiseto leadto great investment in financial assets that you would otherwise

people to overestimate knowledge , underestimate riskscausespeople to overestimate knowledge , underestimate risks

people to overestimate their knowledge , underestimate riskscausespeople to overestimate their knowledge , underestimate risks

in high transaction fees and dampen returnsmay resultin high transaction fees and dampen returns

to excessive trading that can lower portfolio returnsleadsto excessive trading that can lower portfolio returns

investors to think that they are smarter than they are , and leads them to underestimate riskcausesinvestors to think that they are smarter than they are , and leads them to underestimate risk

to more trading which leads to lower returnsleadsto more trading which leads to lower returns

in selfcausesin self

investors to excessive trading and risk takingcan leadinvestors to excessive trading and risk taking

people to overestimate knowledge , underestimate risks , and exaggerate their ability to control eventscausespeople to overestimate knowledge , underestimate risks , and exaggerate their ability to control events

to excessive trading and poor investment decisionscan leadto excessive trading and poor investment decisions

to more trading , which leads to worse returnstypically leadsto more trading , which leads to worse returns

to defeatleadsto defeat

to overtradingleadsto overtrading

complacency and arrogance , which ultimately set the team up for failurecausescomplacency and arrogance , which ultimately set the team up for failure

to excessive trading and underestimation of the downside risk related to the investmentcan leadto excessive trading and underestimation of the downside risk related to the investment

to trading to investorsleadsto trading to investors

investors to overestimate their judgment or the quality of their informationcausesinvestors to overestimate their judgment or the quality of their information

investors to overestimate their judgement or the quality of their informationcan causeinvestors to overestimate their judgement or the quality of their information

us to underestimate risk , as investors we tend to take on too much risk in building a portfolioleadsus to underestimate risk , as investors we tend to take on too much risk in building a portfolio

to mistakes , which lead to failureleadsto mistakes , which lead to failure

artists & entrepreneurs to overestimate their knowledge and underestimate the riskscausesartists & entrepreneurs to overestimate their knowledge and underestimate the risks

carelessness and carelessness leads to mistakescan causecarelessness and carelessness leads to mistakes

to excessive risk taking , excessive trading and lack of diversificationmay leadto excessive risk taking , excessive trading and lack of diversification

people in leadership positions to make bad decisionscausespeople in leadership positions to make bad decisions

investors to overestimate their knowledge , abilities and intuitioncausesinvestors to overestimate their knowledge , abilities and intuition

us to cut corners and make careless mistakescan leadus to cut corners and make careless mistakes

to complacency which is not good for any relationshipcan leadto complacency which is not good for any relationship

to complacency , which is not very good for any relationshipcan leadto complacency , which is not very good for any relationship

to complacency , which isn?t good for any relationshipcan leadto complacency , which isn?t good for any relationship

in complacency , which isn?t good for any relationshipcan resultin complacency , which isn?t good for any relationship

in complacency , which is not good for any relationshipcan resultin complacency , which is not good for any relationship

many unnecessary mistakes and injuriescan causemany unnecessary mistakes and injuries

investors to overestimate the quality of their judgment or informationmay causeinvestors to overestimate the quality of their judgment or information

to poor investing decisionscan leadto poor investing decisions

to arrogance which leads to disasterleadsto arrogance which leads to disaster

people to overestimate the accuracy of their informationcausespeople to overestimate the accuracy of their information

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Smart Reasoning:

C&E

See more*