Behavioural Traps - Overconfidence
A danger to which we are all exposed is 'overconfidence', that is, having an excessive faith in one's ability and knowledge. It is a common attitude, especially among men who on average tend to be more overconfident than women, i.e. they are too sure of themselves. Make no mistake, self-confidence is important. It is what drives us to be active and to be positive towards others. The problem, especially in finance, may emerge when one's self-confidence becomes so excessive that it leads to the underestimation of risks. To learn more, please see our video on this issue.