Overconfidence Bias: Why Investors Overestimate Their Skill After Success
Introduction Few things are more dangerous in investing than success. After a series of winning trades or a strong market run, investors often feel smarter, more skilled, and more in control than before. Confidence grows, caution fades, and risk suddenly feels manageable—unnecessary. This is not coincidence. It’s Overconfidence Bias at work. Overconfidence bias is one