8 ways your brain tricks you (and how to stop it)

Our brains rely on shortcuts to help us process information quickly, but sometimes these shortcuts lead us to make mistakes without even realizing it.

These mental shortcuts, known as cognitive biases.

They help us make rapid decisions but they can also trick us into seeing things in a way that isn’t accurate. From overestimating how much people notice us to believing in lucky streaks, cognitive biases impact our everyday lives in surprising ways.

They can affect the way we judge people, assess risks, make financial choices, and even interact in social situations.

So, how do these biases work? and how do we overcome them? to think more clearly and make better decisions.

1. Confirmation Bias

We naturally favor information that supports our existing beliefs while ignoring anything that contradicts them.

For instance, people tend to consume news that aligns with their opinions, reinforcing their viewpoints instead of considering alternative perspectives. This is why debates about politics, health, and social issues can become so polarized. Social media algorithms also fuel this bias by showing us content we already agree with, creating an echo chamber that further strengthens our opinions.

Challenge yourself to consider different viewpoints. Read news from multiple sources, engage with people who have opposing views, and ask yourself tough questions to ensure your beliefs are based on facts rather than biases. Try debating an issue from the opposite side to see if your argument still holds up.

2. Anchoring Bias

Our decisions are heavily influenced by the first piece of information we receive, even if it’s irrelevant.

This is why retailers display high “original prices” before showing discounts. Seeing an item marked down from $200 to $100 makes us think we’re getting a great deal, even if the item was never really worth $200. Similarly, in negotiations, the first offer often sets the tone for the entire discussion, even if it's unreasonable.

Before making a decision, gather multiple data points instead of relying on the first number or fact you see. When shopping, research actual market prices rather than being swayed by discounts. In negotiations, avoid anchoring to the first number thrown out. Just take your time and evaluate independently.

3. The Halo Effect

When we like one aspect of a person or thing, we assume everything else about them is good too.

Studies show that attractive individuals are often perceived as more intelligent, kind, or capable, even if there’s no actual link between appearance and those qualities. This bias extends beyond people, brands, celebrities, and even job candidates benefit from positive first impressions that may not be entirely accurate.

Be aware of your first impressions. Evaluate people and things based on multiple characteristics rather than letting one positive trait influence your entire judgment. Ask yourself whether your judgment is based on real evidence or just an overall positive feeling.

4. The Spotlight Effect

We believe people notice us far more than they actually do.

Research shows that we overestimate how much others pay attention to our mistakes, outfits, or awkward moments. In reality, most people are too focused on themselves to notice. This can make us feel self-conscious and anxious in social settings when there’s no real reason to worry.

Remind yourself that others aren’t scrutinizing your every move. This realization can help reduce anxiety and boost confidence. If you feel embarrassed about something, remember that most people likely didn’t even notice or if they did, they’ve already forgotten about it.

5. The Dunning-Kruger Effect

People with little knowledge about a subject often overestimate their expertise, while true experts tend to doubt themselves.

A study by Kruger and Dunning found that beginners are often unaware of their own incompetence, while experienced individuals recognize how much they still have to learn. This effect is why confident but uninformed people can sometimes mislead others, while highly skilled professionals may hesitate to speak up.

Stay humble and continue learning. Seek feedback, question your own knowledge, and acknowledge that expertise takes time and effort to develop. Recognizing the limits of your knowledge is a sign of intelligence.

6. The Availability Heuristic

We judge how likely something is based on how easily we can recall examples of it.

People tend to overestimate the risk of dramatic events like plane crashes or shark attacks because they are widely reported in the media. Meanwhile, they underestimate more common dangers like car accidents, which are far more likely. This bias affects everything from financial decisions to public policy.

Rely on actual statistics rather than vivid memories. When assessing risks, look up data instead of trusting gut feelings. If a danger seems exaggerated, compare it to more common risks to put it in perspective.

7. The Baader-Meinhof Phenomenon

After learning about something new, we suddenly start noticing it everywhere.

If you learn a new word, hear about a specific type of car, or discover a concept, it may seem like it’s appearing more frequently. In reality, your brain is just paying more attention to it, not that the thing itself has become more common.

Be aware that noticing something more often doesn’t mean it’s happening more frequently. It’s just a shift in your awareness. Recognizing this can help you avoid jumping to conclusions.

8. Loss Aversion

We fear losses more than we value gains of the same size.

Studies show that people would rather avoid losing $100 than gain $100, even though the outcome is mathematically the same. This bias can lead to risk aversion, causing people to miss out on valuable opportunities.

For example, investors may hold onto failing stocks for too long to avoid the pain of loss, or individuals may resist career changes out of fear of the unknown. It also influences consumer behavior, people are more likely to take action when faced with the risk of losing a discount than when offered a similar gain.

Recognize this bias in financial and life decisions. Instead of focusing only on what you might lose, consider the potential benefits of taking action. Shift your mindset from avoiding failure to pursuing success. When evaluating risks, list both potential losses and gains to make a more balanced decision.

Cognitive biases shape how we perceive the world and make decisions. Being aware of them helps us think more critically, make better choices, and avoid common pitfalls.

So, the next time you find yourself making a quick judgment or feeling too confident in a belief, pause and question whether a cognitive bias is at play.

As they say, awareness is the first step toward clearer and smarter thinking.