Brendan Mullooly asked a bunch of people the following question:
What do you consider to be your biggest behavioral bias (as it pertains to investing or personal finance) and how do you work to control it?
Hindsight bias was my biggest hurdle to overcome.
Hindsight bias makes one part of our brain lie to another part without even realizing it. The way I conquered my internal liar was to write down all of my trades and why I did them. Once every few weeks I would read what I wrote in order to check myself. If I knew Amazon was going higher, why did I short it 5 times due to valuation concerns?
This is a fool proof system. I mean, it takes a real fool to think they knew what was going to happen when their own words prove otherwise.
My favorite answer came from Jim O’Sam:
“What do you consider to be your biggest behavioral bias?” Being a human being.
“How do you work to control it?” Being a quant.
Hit the link below for the whole shabang