Root Out Bias from Your Decision-Making Process

Imagine a scenario where you go to a showroom to buy a car on 31st January

You have zeroed in upon a car, ready to hand over the cheque and suddenly a friend calls you up 

“Hey Milan, where are you?”

You : “ I am at the car showroom, almost finalized the car and in fact the cheque is also ready”

He says, “ Don’t buy the car as Mr. Jaitley will lower GST on car tomorrow"

What will you do?

Be honest with your answer

99% of the chances are, you will not buy the car.

Scenario 2

Everywhere is the same except that your friend calls you up and says that Mr. Jaitley is likely to increase GST on car tomorrow"

What will you do?

Be honest with your answer

99% of the chances are you will buy the car

See what is happening to you.

How you have reacted to a random input of news, without any substantive base 

In a similar fashion, you buy shares based on Whatsapp tips, [ BUY XYZ share with Target 214, Stop Loss 198 ] recruit basis first impressions without making an efforts into probe deeper etc,

So we make decisions based on some or all of the following: ego, ideology, experience, fear, or consultation with like-minded advisers. The book "Judgment Under Uncertainty" explains how psychological bias – also known as cognitive bias – creeps into our decision making process and makes us act in an illogical way.

Psychological bias is the opposite of common sense and clear, measured judgment. This impact all facets of our life.

To overcome it, look for ways to introduce objectivity into your decision making, and allow more time for it.  

Ask yourself, how can I avoid this trap? 

Don't react emotionally reaction to everything that is said to you. 

Sit back and reflect for a while. Get the right people involved, admit your own preconceptions, and let someone challenge it

True power is sitting back and observing everything with logic

After all its just one life, hardly can we afford to take decisions rigged by instinctive biases