We give more weight to recent events or information. If a company had a great quarter, you might invest heavily in its stock, ignoring its historical performance.
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Being an ambivert person, I am too much fond of reading, and always eager to learn.
These cognitive biases and mind traps influence decision-making, perception, and behavior in various aspects of our lives. Recognizing them can help us make more rational and informed choices.
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Similar ideas to 14. Recency Bias:
People give disproportionate weight to the first piece of information they encounter when making decisions. If you're negotiating the price of a used car, and the seller asks for a high price initially, you might end up paying more than you should because the high anchor influenced your perceptio...
After an event occurs, we tend to believe that we predicted it all along. For instance, if a stock you invested in performs poorly, you might say, "I knew it was going to drop."
We tend to judge the likelihood and significance of things based on how easily they come to mind. The more “available” a piece of information is to us, the more important it seems.
The result is that we give greater weight to information we learned recently because a news...
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