What Is Hot-hand Fallacy And How To Avoid It
Heuristics are a way for us humans to make decisions quicker, but sometimes relying on them leads to poor ones. Hot-hand fallacy is a heuristic that can cause bad financial decisions, but what is...
Category: Behavioural Finance
What Is Hindsight Bias And How To Avoid It
Decision making, and especially financial decision making, often requires a lot of mental energy due to the often complex decisions we face. Hindsight bias is a cognitive bias that can affect our thought process...
What Is Gambler’s Fallacy And How To Avoid It?
Decision making, and especially financial decision making often requires a lot of mental energy due to the complex decisions, full of complex information. Gambler’s fallacy is a cognitive bias that we can fall into...
What Is Framing Effect And How To Avoid It
Decision making, especially financial decision making, requires a lot of mental energy to be effective. Which is why the brain often relies on heuristics to lighten the load. The catch is that this can,...
What Is The Disposition Effect And How To Avoid It
Decision making, especially financial decision making requires a lot of mental energy to be effective. Which is why the brain often relies on heuristics. The catch is, this can, and often does, lead to...
Decision Fatigue, What Is It And How To Avoid It
Making decisions is hard work on the brain, that is why heuristics exist, which often lead to biased behaviour. Decision fatigue is no different! Read on to find out what decision fatigue means and...
Confirmation Bias, What Is It And How To Avoid It
Confirmation bias affects our decision making and can lead us to make less than optimal ones. But what is it and is there a way to avoid it? What is confirmation bias Confirmation bias...
