Less Confidence is Helpful in Investing.

 Confidence is important in life, we always seek for confidence in life. While confidence is often considered a strength in many situations, in investing, it tends to be more frequently be a weakness. You won't believe that careful risk management is critical to successful investing. Here invest means, not only in business, in all sector of life. While you are investing your time, your strength, your effort be careful about investing, being mistakenly overconfident in our investment decisions interferes with our ability to practice good risk management.

Overconfident can lead to disastrous results, you will get upset easily and you will be thinking that you lose the game. We make the mistake of believing that an outcome is more probable just because that’s the outcome we want. This is true that, we should be confident while investing but we should think about some key facts:

1. Over Rating -  This is something you can say rating themselves better then average, and it causes more loses then losing nothing. Don't over rank yourself. you know who you are. Don't take stupid step because of he/she told you to do that. 

2. Undermining Control of the Situation - Its a thing of controlling the situation. What is happing out there is not in your control. If you think that you are controlling that situation, Its a wrong thought process, this can be very dangerous in investing, It creates a fake illusion and it leads us to think situations are less risky than they actually are. 

3. Timing Optimism - It is a general fact that when we planning to invest we visualize thing in our mind in really fast, we don't think in reality, how long it takes them to get things done, how long a project will take to complete, How much time do I have, Example - Its a thing like when you are in university and you graduation almost complicated, Now you are thinking to invest on a startup and you don't have the time to invest or you don't have that timeline when you will be getting the good result from that invest to pay off. If that guy thought in that 2nd year of his university life he can do that without thinking 2nd time because he got a plenty of time. 

4. Wishful Thinking - When we overestimate the odds of something happening simply because the outcome that we are thinking. And we stooped investing or loosing confidence about that whole planning/process. Some time the the wishful thinking bring success but it also causes lacking what you are trying to achieve.