Why "Confirmation Bias" Is Bad For Your Financial Health

My way of overcoming “confirmation bias” is to not try to predict anything, but to have an exit strategy in place before I invest. But however you deal with the “yes-man” in your head, make sure you deal with it.

From the WSJ:

In short, your own mind acts like a compulsive yes-man who echoes whatever you want to believe. Psychologists call this mental gremlin the “confirmation bias.” A recent analysis of psychological studies with nearly 8,000 participants concluded that people are twice as likely to seek information that confirms what they already believe as they are to consider evidence that would challenge those beliefs.