Financial biases are cognitive or emotional tendencies that can influence financial decision-making. These biases can lead to irrational or suboptimal financial choices and can be a result of a variety of factors such as emotions, past experiences, and cognitive shortcuts. It's important to be aware of these biases and try to minimize their influence on financial decisions. Seeking the advice of a financial professional can also be helpful in making informed decisions.
Anchoring bias: This is the tendency to rely too heavily on the first piece of information encountered when making a decision, even if that information is not relevant or accurate.
Availability bias: This is the tendency to overestimate the likelihood of an event based on how easily examples of it come to mind.
Overconfidence bias: This is the tendency to overestimate one's own abilities or judgment.
Framing bias: This is the tendency to make decisions based on how information is presented, rather than the content of the information itself.
Sunk cost bias: This is the tendency to continue investing in a project or decision because of the resources that have already been put into it, even if the expected returns are not favorable.
Status quo bias: This is the tendency to stick with the current state of affairs, even if a change may be beneficial.
Confirmation bias: This is the tendency to search for and interpret information that confirms one's preexisting beliefs while ignoring information that contradicts them.
Loss aversion bias: This is the tendency to place more value on avoiding losses than on acquiring gains.
Endowment bias: This is the tendency to value something more highly just because it is owned, even if it has no intrinsic value.
Escalation of commitment bias: This is the tendency to continue investing in a project or decision, even when it is not going well, due to a desire to justify the initial investment.
Attentional bias: This is the tendency to give disproportionate weight to information that is more prominent or readily available.
Self-attribution bias: This is the tendency to attribute successes to one's own abilities and efforts, but attribute failures to external factors.
Representation bias: This is the tendency to base decisions on a small sample of information, rather than considering a more representative sample.
Mental accounting bias: This is the tendency to categorize money and assign different values to it based on its source or intended use, rather than treating it as a single pool.
Optimism bias: This is the tendency to have an overly positive outlook on the future, leading to unrealistic expectations.
Pessimism bias: This is the tendency to have an overly negative outlook on the future, leading to a fear of taking risks.
Representativeness bias: This is the tendency to base judgments on stereotypes or patterns, rather than on actual data.
Availability heuristic: This is the tendency to make judgments based on information that is easily available or comes to mind, rather than on a more comprehensive analysis.
Framing effect: This is the tendency to make different decisions based on how a problem or choice is presented.
Affect heuristic: This is the tendency to allow emotions to influence decision-making.
Gambler's fallacy: This is the belief that the likelihood of an event occurring increases based on previous events.
Halo effect: This is the tendency to allow one positive characteristic to influence the overall evaluation of an individual or situation.
Omission bias: This is the tendency to judge actions as more morally wrong when they are active, rather than passive.
Framing effect: This is the tendency to make different decisions based on how a problem or choice is presented.
Sunk cost fallacy: This is the tendency to continue investing in a project or decision because of the resources that have already
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