We see people who are fed up of the lockdown and telling themselves that
nothing will happen to them.
That's mainly because they haven't experienced any tragedy in their own
family or circle.
This is Optimism Bias at play.
It is the belief that each of us is more
likely to experience good outcomes and less likely to experience bad
outcomes. The key to optimism bias is that we disregard the reality of an
overall situation because we think we are excluded from the potential
negative effects. So, it's just a psychological trap, nothing else.
Remember a quote from Joseph Stalin,
A million deaths is a statistic. But one death is a tragedy.
It's like if we read the news that 10,000 people died, it doesn't affect us
that way, as a single death of someone we know, does. Because when it's a
single death, we get to attach the name, story, and narrative of that person
and feel emotional about it, but a million deaths is indifferent to our
psyche. This is another psychological trap.
So, the bottom line is, that no matter how social norms are being relaxed,
stay alert, cautious, and extra vigilant, as if it's still an EMERGENCY,
because it still is! Stay safe and go outside only if it is a must. And
follow all the precautions without fail. Take extreme care.
Well, stock market traders also suffer this bias in their day to day trading. This happens when one gets consecutive profitable calls and one starts feeling that he is the best and that is the time when the market strikes it in a big way to teach the trader a good lesson for the mistake which it omitted. So, as a trader guard against the optimism bias.
Get daily accurate intraday tips and make money like professional traders in the market.
You
should Trade Less But Trade Accurately & this is Achieved with our Tip.
