The author, Robert Sinn, suggests that we fall victim to confirmation bias several times a day. I would submit that we don’t fall victim to confirmation bias, but it is how our minds work, and not just several times a day, but as constant tendency. – Ilene
How to Lose 2 Million Dollars Through Confirmation Bias
Confirmation bias: The tendency for people to favor information that confirms their preconceptions or hypotheses regardless of whether the information is true.
“It is the mark of an educated mind to be able to entertain a thought without accepting it” -Aristotle
Of all the potential pitfalls and sins of investing, one of the most dangerous for an investor to fall victim to is confirmation bias. We have all fallen victim to confirmation bias, whether it is in our everyday lives, listening to the news, or even the way in which we choose our friends. In our day to day lives most of us commit confirmation bias several times a day without noticing or even thinking about it. The consequences are usually relatively harmless, although at times they can be rather significant and costly.
Keep reading here: How to Lose 2 Million Dollars Through Confirmation Bias, The Stock Sage.
