Kuvera's video: Overconfidence Investing: The Dunning-Kruger Trap

Have you noticed that people who probably know the least often try to sound the most confident? Well, you might wanna hold that thought! Enter the Dunning-Kruger Effect – a term that describes the behaviour of ignorant people pretending they know everything. Two scholars, Dunning and Kruger, discovered this phenomenon back in '99. They tested people on thinking, grammar, and humour. What they found was surprising: those who performed poorly thought they were much better than they actually were. For instance, some who scored low believed they were actually better than most. So, why does this happen? Well, it's partly because we all love feeling confident, but that doesn't necessarily mean we're skilled. Additionally, many of us can't even tell how good we are because we lack something called 'awareness. The result? A double whammy. We mess up, and then we can't even see it. So, what's the takeaway for investors? Don't let confidence cloud your judgement. Stay humble, keep learning, and never underestimate the complexity of the market. After all, in the world of investments, it's better to be cautious than overconfident. Stay updated with super cool videos on investing. Subscribe to Kuvera Channel https://bit.ly/3bawMXK Follow the conversations across Kuvera.in on Twitter : https://twitter.com/Kuvera_In Facebook : https://www.facebook.com/kuvera.in/ LinkedIn : https://www.linkedin.com/company/kuvera-in/ YouTube: https://www.youtube.com/@Kuvera Thread: https://www.threads.net/@kuvera.in Start your investing journey with Kuvera: https://kuvera.onelink.me/t2AP/c4syh6uy