Sunk Cost Fallacy and You
Have you heard of the logical mistake people get tripped up known as the sunk cost fallacy? Odds are, you allow this thinking error to influence your life more than you think. The games our mind can play with us are abundant to begin with in the world of trading and investing. Sprinkle on the day to day mind games such as the sunk cost fallacy and I don’t blame you if smoke begins to pour out of your ears! It’s annoying no doubt, but the biggest problem I would argue is the lack of knowledge of its existence. Once you are aware of these thinking errors, you can be much better prepared to handle them. In my hears of coaching traders I’ve lost count of the number of times I’ve seen the sunk cost fallacy create unneeded issues for people. Let’s talk a bit more in-depth about it so you are aware and prepared to fight off this logical fallacy when it comes knocking on your door.