Two Infographics on Cognitive Biases

[netnet]

Here are 2 "Infographics" on cognitive biases,

 

enjoy:

 

http://www.businessinsider.com/cognitive-biases-that-affect-decisions-2015-8?utm_source=feedly

http://www.valuewalk.com/wp-content/uploads/2016/04/Cognitive-Biases-Infographic.jpg

 

 

[JRH]

I have these references (starting on page 9) printed out and pinned up all around where I work... I read a few at a time, and the repetition eventually catches me at the right time that I can relate it to something "real world", which seems to make it stick in my memory better:

 

https://www.scribd.com/doc/30548590/Cognitive-Biases-A-Visual-Study-Guide

[Travis Wiedower]

I like that JRH; I try and think about what biases are affecting me as often as I can. After reading Thinking, Fast and Slow earlier this year I wrote a blog post on some biases that I think especially affect investors:

 

https://traviswiedower.com/2016/01/14/human-biases-make-investing-hard/

[Graham Osborn]

Notice how the common theme is either creating fictitious information or ascribing too much weight to certain existing information.  The best situations to bet against (either over-bulled or over-beared securities) arise when the prevailing view contains strong assertions.  Strong assertions include words like "definitely," "highly likely," "nearly impossible," "by X date," "for X amount," etc.  People tend to adopt strong assertions in schooling situations, at which point they are most vulnerable to strong contrarian bets.  Of course, an early contrarian is a trampled contrarian just as a late trend-follower is a trampled trend-follower.