1. Confirmation Bias – We interpret new information as confirmation of our existing beliefs.
2. Availability Bias – We tend to rely on information that comes to our mind easily/the quickest.
3. Action Bias – We favor action over inaction. That’s why we sell or buy prematurely.
4. Zero-Risk Bias – If a risk is considered small, we assume there is no risk at all.
5. Overconfidence – We overestimate our own knowledge and ability. A.K.A. Dunning-Kruger Effect. Often because we know too little to know better. (Less knowledge => more confidence)
6. Survivorship Bias – This is a sample bias that occurs when we assess only successful outcomes and disregard failures.
7. Gambler’s Fallacy – We tend to think that past events affect future possibilities.
8. Cause-Effect Fallacy – We always look for cause-effect relationships. Thus, we find patterns even in totally random data.
9. Hyperbolic Discounting – We are wired to prefer instant gratification (e.g. payouts). Even when offered significantly more in the future.
10. False Consensus Effect – Too often, we overestimate the degree to which others agree with us.
11. Psychological Denial – When something terrible happens, we tend to fall into a state of denial.