Graeme Newell's video: Ask the Behavioral Finance Advisor: What is the Illusory Correlation Definition

What is the Illusory Correlation Definition? Graeme Newell, the behavioral finance advisor, shows you many examples of how this cognitive bias shows up in our decision making. Illusory correlation examples are a behavioral finance concept where unrelated events are seen as causal. The truth is the events have nothing to do with each other. Why did they call it illusory? Because we're blind to it. Behavioral finance bias protects our brain from seeing the correlation. This can get a finance advisor into a lot of trouble. Illusory correlation causes sophisticated people, even experts in behavioral investing to make foolish financial decisions. The behavioral biases in finance are responsible for many of us overestimating our investing skill. When the truth is we simply get lucky in the market. Learning how to combat this common financial psychology bias can save you a boatload of money. But you need to learn to recognize the signs of this behavioral finance bias and train your brain to get back on track. 🔴 Subscribe for more videos just like this: https://bit.ly/3atitPl About Graeme’s Channel: I’m a researcher, speaker and author who specializes in behavioral finance. I take perverse pleasure in putting people inside of brain scanners, then asking them to make important money decisions. My videos reveal the vulnerable situations when business leaders and everyday people are most likely to make crazy-bad, impulsive money decisions. I teach how to use brain science insights to make smarter decisions that grow businesses and increase wealth. Learn more about how brain science insights can help you make smarter decisions: https://graemenewell.com/