Interesting video that explains how optimism bias can adversely impact trading and your life as well.
Some notable excerpts from the video
Illusion of control - people think that they often have control over events. But the fact is we
don’t actually have any control over the financial markets whatsoever.The second problem with optimism is what behavioral experts call superiority bias its superiority bias which is also called the better-than-average fact is the idea that we tend to think of ourselves as better than average in a number of domains so we may think that we are more attractive smarter more generous as well.
There’s just a a feeling that we as humans have of exceptionalism that we all kind of think that we are a little bit above average and whatever we do. So the idea that hope springs eternal among people in whatever it is that we’re doing I think you know also applies to investing.