Have you ever only listened to suggestions that are similar or supportive of your original thoughts and ignored dissenting opinions from others? Perhaps everyone has encountered this situation at some point, and some people frequently face such cases. In psychology, this emotional phenomenon is scientifically termed "CONFIRMATION BIAS."
In psychology, confirmation is an emotional tendency to seek out and trust information that supports their initial decisions while ignoring contradictory or opposing information. Confirmation arises from the fear of admitting one's mistakes; they often have an inflated ego and self-esteem and always believe in their own assessments, coupled with a more primal emotion known as similarity—people tend to more easily accept information that aligns with their own thoughts.
Some of the most characteristic manifestations are:
- Only seeking supporting information: They only look for information and news that supports the project they are investing in and refuse to find opposing information.
- Ignoring warning information: When there are signs of a bad market or investment assets that pose risks, investors ignore them because they do not align with their initial beliefs.
Information bias evaluation: Investors view positive information as "trustworthy," but negative information as "inaccurate."
Those who carry Confirmation bias often have biased and narrow assessments when looking at the market, leading to poor decisions. They cling to those erroneous views and continue to invest ineffectively, easily becoming victims of "financial bubbles."
So what is needed to fix this? Seek diverse information from all sources and filter it to gain a comprehensive perspective on your issue. Instead of saying "It will probably..." or "Surely it will...", use reason to analyze the market for investing. Listen to expert opinions to gain a broader understanding. Always ask yourself, if you had to convince someone about your investment decision, how would you answer their counter-questions?
I find this emotion quite dangerous, so anyone experiencing it should quickly escape it. Let's share our thoughts and perspectives for discussion.
