Making Better Decisions: Evaluating and Improving Decision-Making Skills

🤔Biases and cognitive misers affect decision-making

📈Better decision-making enhances investment performance

Why do biases influence decision-making?

—Biases, such as the hurting bias and optimism bias, lead to irrational decision-making and poor investment performance.

How can I improve my decision-making skills?

—Evaluate your biases, engage in rational thinking, and employ techniques like subjunctive reasoning to overcome biases and enhance decision-making.

00:05Introduction to the importance of making better decisions and evaluating decision-making skills.

00:32Discussion on biases and cognitive misers that hinder rational decision-making.

06:00Explanation of the hurting bias and how it influences decision-making in stock markets.

07:34Illustration of the optimism bias and its impact on decision-making in personal life.