Remember – CONFIRMATION BIAS can be a downfall for all investors and traders.. Here’s a really good article from Schwab on the subject.
Their key takeaways are:
- Confirmation bias is the tendency to seek information that supports a person’s beliefs.
- This bias may lead investors to focus only on information that reinforces their opinions about an investment.
- Selectively choosing which information to use can lead to a lack of diversification and investments that are too risky.
Read full article here. https://www.schwabfunds.com/content/confirmation-bias