decisionmaking Archives - Finance Psyche

𝐌𝐈𝐍𝐃 𝐓𝐑𝐀𝐏 𝐒𝐄𝐑𝐈𝐄𝐒 𝐅𝐎𝐑 𝐋𝐄𝐀𝐃𝐄𝐑𝐒 – 18/21

🌟𝐇𝐨𝐩𝐞 𝐯𝐬. 𝐇𝐲𝐩𝐞: 𝐍𝐚𝐯𝐢𝐠𝐚𝐭𝐢𝐧𝐠 𝐎𝐩𝐭𝐢𝐦𝐢𝐬𝐦 𝐁𝐢𝐚𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐖𝐨𝐫𝐤𝐩𝐥𝐚𝐜𝐞 🌟 In the journey of our professional and personal lives, our mindset plays a pivotal role in shaping our decisions and outcomes. But did you know there’s a silent navigator often at the helm? It’s called 𝐎𝐩𝐭𝐢𝐦𝐢𝐬𝐦 𝐁𝐢𝐚𝐬 – a fascinating…

Quick judgments based on the loudest memories might not always echo the truth.

Continuing with our #MindTrapSeries, let’s unravel the Availability Heuristic today. Ever noticed that things we hear about often or recently seem more important or frequent than they actually are? 🤔 For instance, after seeing news about a rare event, we might overestimate its likelihood. That’s the Availability Heuristic in action.…

𝐓𝐡𝐞 𝐄𝐦𝐨𝐭𝐢𝐨𝐧𝐚𝐥 𝐁𝐫𝐚𝐢𝐧 𝐯𝐞𝐫𝐬𝐮𝐬 𝐭𝐡𝐞 𝐓𝐡𝐢𝐧𝐤𝐢𝐧𝐠 𝐁𝐫𝐚𝐢𝐧

Today, I’d like to delve into the two key components that govern our actions and responses – the 𝐄𝐦𝐨𝐭𝐢𝐨𝐧𝐚𝐥 𝐁𝐫𝐚𝐢𝐧 and the 𝐓𝐡𝐢𝐧𝐤𝐢𝐧𝐠 𝐁𝐫𝐚𝐢𝐧. These parts are also known as the limbic system and the prefrontal cortex, respectively, in neuroscience. Our 𝐄𝐦𝐨𝐭𝐢𝐨𝐧𝐚𝐥 𝐁𝐫𝐚𝐢𝐧, deeply rooted in our survival instincts, responds to…

GROUP THINK

Today I want to chat about something called 𝐠𝐫𝐨𝐮𝐩𝐭𝐡𝐢𝐧𝐤 of Mind Trap Series. Ever been in a meeting where everyone just nods along to the same idea? That’s 𝐠𝐫𝐨𝐮𝐩𝐭𝐡𝐢𝐧𝐤. It’s when we care more about everyone agreeing than coming up with the best idea. It can stop us from thinking creatively…

🕳💰 𝐒𝐮𝐧𝐤 𝐂𝐨𝐬𝐭 𝐅𝐚𝐥𝐥𝐚𝐜𝐲: 𝐓𝐡𝐞 𝐌𝐢𝐧𝐝 𝐓𝐫𝐚𝐩 𝐓𝐡𝐚𝐭 𝐊𝐞𝐞𝐩𝐬 𝐔𝐬 𝐒𝐭𝐮𝐜𝐤 💰🕳

Today, let’s dive into a cognitive bias that can significantly impact our decision-making processes and potentially lead us astray: the Sunk Cost Fallacy. The 𝐒𝐮𝐧𝐤 𝐂𝐨𝐬𝐭 𝐅𝐚𝐥𝐥𝐚𝐜𝐲 refers to our tendency to continue a behavior or endeavor because of previously invested resources (time, money, or effort), even if it’s no longer…