Overconfidence: Your Business’s Biggest Enemy

Confidence is very important for all activities. Business is not an exception, which very much depends on whether a person believes in himself. But there is a huge gap between confidence and overconfidence. Ordinary confidence is connected with the fact that a person understands its own abilities, both weak and strong sides. As a rule, confident people are more successful in activities or work. And only self-esteem allows people not to be afraid and challenge the. Self-confidence allows to make the right decisions and take responsibility for their results. A confident person understands own real capabilities and this sobriety of thinking provides a person with the right decisions and the respect of others.

But there is a fine line between reasonable certainty and its excess. It is very important for any person to have a correct picture of the world and its place in it. This allows a person to be flexible, adapt to the situation and take risks only when it is justified. Often, due to various reasons, people cultivate overconfidence in themselves. Such confidence makes a person narcissistic and makes it impossible to listen to others and learn. Due to excessive confidence, people cease to see the obvious and become fixated on their personality, losing sight of the rest of the facts. An overly confident person becomes biased and this distorts the perception of facts that are obvious to others.
Business is similar to gambling in terms of the role of the individual and its character. Belief in yourself is important both for business and for gambling, but an overconfident person is inclined to overestimate own intuition, ability to calculate or make plans. Overconfidence arises for a variety of reasons.

The first one is protective. In the event that a person has previously failed and cultivates self-confidence as an answer to the faced challenges. Such overconfidence has no justification and can lead to significant losses. The second and more common type of confidence over is the fixation of success. That is, a person once achieved success, overestimates own importance and perceives success not as a combination of many factors, including luck, but as exclusively merit. Often, excessive knowledge provokes theoretical knowledge. That is, a person in practice has not yet performed a certain action but knows how to do something theoretically. In such a situation, you may have the feeling that we have knowledge in this area, although in reality, this is far from the case. Obviously, in all cases, a person is inclined to overestimate own significance and deny the significance and expertise of other people.

Any activity, whether business or gambling, does not endure haste. As a rule, rush or rash acts will only hurt and cause failure. However, overconfidence encourages a person to rush and make quick decisions. Resting in complete confidence that your thoughts are extremely true and you cannot be mistaken, you ignore the risks and perceive the situation, costs and potential benefits of the decision made distorted. If you are too self-confident, then you can first ignore the chance of failure, thereby taking a risk, and secondly, underestimate the possible consequences. This becomes a problem in gambling, where people begin to rush and eventually lose everything.

If you have won blackjack several times in a row, you can focus on one hand and do not take insurance in live blackjack with real money, it’s a rip-off with, almost always, negative outcome. When making decisions, you can be sure of your high skill and insight, but in fact, you ignore safety and downplay the risk that pushes to refuse insurance. That is why it is important to understand that too much confidence can be detrimental to work, but also to your hobby. It forces you to make rash decisions that are based on incomplete information and lead to losses.

It is important not only to understand the problem but also to strive to overcome it in order to protect yourself in the future. One of the most effective methods is a legitimate doubt. That is, making an assumption, do not rush to bring it to life. First, think about why you might be wrong and “have a debate with yourself.” To do this, pick up a set of statements about why your original idea is wrong. This does not mean that you should begin to doubt your every action. But with such a little analysis, you can avoid many hasty and wrong decisions.

Subscribe

Get the latest Swagger Scoop right in your inbox.

By checking this box, you confirm that you have read and are agreeing to our terms of use regarding the storage of the data submitted through this form.

Leave a Reply

Your email address will not be published. Required fields are marked *

*
*