Illusion of Control Bias

You think you’re “in control,” even when you’re not. A stock will not rise merely because you buy it, any more than a lottery ticket is more likely to win because you personally picked the numbers.

This bias causes investors to believe that extensive research, frequent portfolio monitoring or active trading gives them an edge. In reality, these behaviors often reduce returns by increasing costs and creating more opportunities for emotional decision-making. The market does not respond to any individual investor’s intentions – and believing otherwise can lead you to take on far more risk than you realize.