How to avoid biased thinking in investing

2022-05-26 0 By

Always check biases, your biases and other people’s biases. Let’s make an informed decision and allow them to make an informed decision.Biases are something we all have, and the longer we stay in an industry and the more experience we have, the easier it is to form our own set of beliefs and opinions, which are most likely to be biased by ourselves.Over time, our biases can even become ingrained in our minds, affecting us in ways we don’t even know we don’t have.Here’s the hardest part: When we form a firm opinion about a judgment, it’s not easy to tell whether the firm opinion comes from an objective, neutral conclusion based on careful, comprehensive research, or from a desired conclusion based on our own personal preferences.If the former is the case, then this firm view of the true order of things will help us avoid the “herd mentality” and keep our sense of reason when the masses are going crazy or scared;But if it is the latter, we risk becoming delusional, living in our own edited fantasies and eventually being crushed by facts.In the cryptocurrency industry, the most likely topic of heated debate is the market, as it is in the interests of every investor and the easiest way to establish one’s reputation and influence in the industry.Every investor wants others to agree with him.It’s a natural, normal thought.On the one hand, it can make the “herd effect” or “empathy” in my human nature secure and sheltered —— The more people who agree with my views, the safer I am psychologically;Even if it’s wrong, we all die together, and no one can blame anyone;On the other hand, it makes the human sense of satisfaction and accomplishment explode: if I get it right, people will love me, fans will chase me.So driven by this psychological effect and interest, many people will express their views on the market, including myself, of course.I believe everyone has this kind of psychology, just a matter of how much.The biggest problem is how to control the psychological effect and interest drive.Once we can’t control it, we are likely to know that our opinions are divorced from reality and become prejudices, and we will blindly defend our prejudices and cling to our own beliefs regardless of everything, for any reason.In the end, this will only hurt others.So when we look at any point of view, we have to be careful of possible biases and blind spots.Every time I express my views on the market, I hope to cast a brick to introduce a stone to guide people to analyze from multiple angles, come to their own views, act according to their own plan, and not be misled by my prejudices and blind spots.Then again, how can we avoid prejudice?I think there is only one way: stay away from the interference and drive of interests, sink down, open your mind, keep learning, try to make yourself less blind spots, more vision, try to look at problems comprehensively, and constantly enrich and improve your investment system.In addition, in this field, but also as far as possible away from the hustle and bustle of the market, let their own independent thinking, with an objective and rational attitude to treat their own favorable and unfavorable factors.