I thought business ethics was a pretty useless class…but I did get one thing out of it that can apply to trading.
"In recent years psychologists have discovered a number of weaknesses and biases in how human beings make decisions. As a backdrop, recognize that cognitive weaknesses and biases we will be discussing operate primarily because people try to reduce uncertainty and simplify their world. Be aware, though, that your thinking about the facts is likely to be biased.
Research evidence suggests that you many look for the wrong ones or stop looking too soon because you think you already have all the facts you need. Being overconfident can make you fail to search for additional facts or for support for the facts you have. All of us have the tendency to look for information that will confirm our preferred answer or choice and to neglect to search for evidence that might prove us wrong.
In an attempt to overcome the confirmation trap, it's important that you consciously try to think of ways you could be wrong. Incorporate questions in your individual and group decision-making processes such as, "How could I be wrong?" What facts are still missing?" and "what facts exist that might prove me/us to be wrong?"
