How to Combat Overconfidence:- • Seek Professional Advice:

How to Combat Overconfidence:- • Seek Professional Advice: It can be countered by consulting with a financial advisor. A financial advisor can provide objective recommendations based on data and help set expectations for risk and return. • Use a systematic investment strategy. Instead of trying to pick individual stocks or time the market, focus on a disciplined investment strategy based on your long-term goals and risk tolerance. A good example is dollar-cost averaging; you invest a fixed amount regularly, irrespective of the market conditions, which goes a long way in reducing impulsive decisions. d. Mental Accounting:- Separate Treatment of Retirement Funds Mental accounting is the practice of treating different sources of money or investment accounts as being different even though they are fungible. This is the tendency to treat one\'s retirement savings as \"untouchable,\" for example, yet s