Personal Finance Essentials
Intuition Bias
The Psychology of Investing > Intuition Bias
This is the tendency to trust your gut and your instincts instead of objective data or rational analysis – especially when the two conflict.
It’s the belief that because something feels right, it must be right. Have you ever bought a stock largely or solely because it “felt like a winner”?
Intuition bias elevates gut feelings above facts, which can lead to flawed decisions – especially in finance, business and complex problem-solving. If you have a gut feeling, look for empirical evidence to verify your thinking before you act.