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Behavioral Finance

Illusion of Control

Also called: control illusion, false sense of control

The illusion of control is overestimating your influence over outcomes determined largely by chance. It's why people prefer to choose their own lottery numbers and why active traders feel safer than index holders despite worse results. Trading interfaces intensify it deliberately: more buttons, more data and more frequent feedback all make randomness feel like a system responding to skill.

Want more than a definition? Learn it in Mind Over Markets →

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