Stock Market · True or False
Is it true that confirmation bias leads investors to ignore negative data?
True. We search for evidence supporting our positions.
Confirmation bias causes investors to seek information that supports their position while ignoring contrary evidence — this prevents timely exits from deteriorating investments.
Only reading bullish analysis on stocks you own while dismissing bearish evidence, which prevents you from seeing when your investment thesis has broken down.
This scenario is one of 155 in the Skillful Stock Market track. Each card states a situation, you decide true or false, and the explanation follows immediately.
- Answer
- True
- Track
- Stock Market
- Topics
- cognitive-biases, behavioral-finance
Also asked as
What is confirmation bias in investing? How confirmation bias leads to ignoring warning signs? Why investors seek information that supports their beliefs?
The scenario in full
Confirmation bias leads investors to ignore negative data.
Frequently asked questions
Is it true that confirmation bias leads investors to ignore negative data?
True. We search for evidence supporting our positions.
What is confirmation bias in investing?
True. We search for evidence supporting our positions. Confirmation bias causes investors to seek information that supports their position while ignoring contrary evidence — this prevents timely exits from deteriorating investments.
How confirmation bias leads to ignoring warning signs?
True. We search for evidence supporting our positions. Confirmation bias causes investors to seek information that supports their position while ignoring contrary evidence — this prevents timely exits from deteriorating investments.
Why investors seek information that supports their beliefs?
True. We search for evidence supporting our positions. Confirmation bias causes investors to seek information that supports their position while ignoring contrary evidence — this prevents timely exits from deteriorating investments.
Where does this stock market question come from?
It is one of 155 scenarios in the Skillful Stock Market track. Each card states a realistic situation, you decide true or false, and the explanation follows immediately.
How do I practise more questions like this?
Start the Stock Market quiz. It runs about two minutes per session, the first 150 questions are free across every category, and your progress saves automatically.