Self-development

What is ‘assertiveness’

In behavioral Finance, self-assertion is a common emotional bias. Also referred to as self-enhancing bias is the tendency for people to take all the glory for his success, giving little or no credit for other people or external factors. People can emphasize their positive qualities and at the same time emphasizing the negatives associated with the other. This can adversely affect the attitude of investors, because they become overconfident about their abilities; they will attribute past success to their own skill and deny the role of luck in these results.

Breaking down the ‘affirmation’

People who have achieved success in the financial markets or otherwise have a tendency to attribute much of that success to their hard work, skills, intelligence and creativity. Good luck and other external influences are largely discounted, so they do not diminish the credit due to its own obvious abilities. When a person seeks to self-enhance, they can do so, tell positive stories about itself and negative stories about others.

Example self-development

A typical example of self-assertion is the conclusion that most people rate themselves “above average” when respondents were asked to rate their ability and rate the others as “below average”. Most people assess themselves above average for driving while rating other drivers are below average. Of course, by definition, it is impossible for everyone to be above average. People also tend to evaluate their personal qualities, such as attractiveness, intelligence, abilities, leadership, and patience, as above average. In one study, 94% of College professors self-esteem above average in their profession.

Assertion can happen in many different situations and in different guises. The General motive of self-affirmation can have many different underlying explanations, each of which becomes more or less dominant depending on the situation. In a financial context, the affirmation can serve as something of a call option. As a result, the individual may selectively exercise the call option attributed to learning the results of their own design, while giving the option to expire in accordance with the scenarios does not want to take credit for.

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