Humans have confirmation bias - they focus on being right and ignore where they were wrong, which affects their decision patterns
Individual stock traders lose money because they only remember trades where they made money, never analyzing their losses, so they continue the same losing patterns. This selective memory of wins while ignoring failures keeps people locked into bad decisions.
Relevant Clips1
- Teaching4:42
Confirmation Bias — Humans Focus on Being Right Not Wrong
Humans have confirmation bias - they focus on being right and ignore where they were wrong, which affects their decision patterns