The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be talking about the cognitive dissonance bias. And this is another favorite one of mine and just kind of dovetailing off of yesterday’s talk about the self-attribution bias, but cognitive dissonance is basically this idea that investors will potentially ignore a lot of newly acquired information or even pertinent and relevant information that they just come into contact with because it conflicts with how they previously thought the world worked or how portfolios worked or how investing or trading worked and it’s really detrimental because the problem is that sometimes you could be staring something right in your face. It’s right there in front of you. It’s researched. It’s backed. There’s data behind it. There’s a rationale and there’s a value to it and you just push it aside. You just cognitively take your hand and just move that to the side because you don’t agree with how that is now conflicti